Zagreb International Review of Economics and Business
Volume VII, Number 1 (May 2004)
ABSTRACTS
Transforming Economies, Technology Transfer and Multinational Corporations Strategies
Xavier Richet
Abstract: Foreign direct investment inflows in European transition economies, although limited in volume, plays a strategic role in restructuring and developing new businesses, in integrating these economies to the world economy, in bringing in technology, know-how and management skill. Entry on these new markets either through acquisition and merger, either through greenfields depends of different barriers, asset specificities, market regulations. In spite of important entry and transaction costs, foreign investors favour direct investment with full control of local assets allowing them to attain more easily their different objectives: market share, cost reduction, integration of local units in the global or regional strategy of the company.
JEL classification: F2, L1, L2, P5
Key words: technology transfer, institutional change, FDI
Testing the Efficient Market Hypothesis in The Greek Secondary Capital Market
Aristeidis G. Samitas
Abstract: This study uses cointegration tests and event study methodology to provide evidence on the Efficient Market Hypothesis (EMH) in the secondary (parallel) capital market of Athens Stock Exchange (ASE). It examines the existence of interdependence between primary and secondary market in order to test the autonomy of secondary market price behaviour. It also measures the effects of the announcements for issuing new stocks by the listed companies. The empirical results indicate that there is evidence of a bi-directional causality and price co-movement between the primary and secondary capital market in Greece. These findings have significant implications for the rejection of the weak form efficiency. It also provides evidence, which suggests that the announcement of issuing new stocks gives support (total or partial) to specific classes of capital structure theories. The existence of non-zero abnormal returns around the announcement periods leads to the rejection of the semi-strong EMH for the secondary market of the ASE.
JEL Classification: C12, G14
Key words: secondary capital markets, cointegration, event study methodology, market efficiency
Capability-Based School of Thought’s Relevance on Firms’ Competitive Advantage Sources
Tomaz Cater
Abstract: Based on a survey of 225 Slovenian companies this study analyses the sources of competitive advantage as seen by the capability-based school, examine the relationship between these sources and a firm’s competitiveness and performance and, based thereon, offer a judgement on the relevance of the capability-based school.
JEL classification: M10
Key words: firm, capabilities, competitive advantage, performance
The Cumulative Prospect Theory and Managerial Decision Making
Darko Tipuric ; Jasna Prester
Abstract: Can managerial decision making be predicted? Why would we want to predict managerial decision making? Managerial job is largely that of making decisions. In order to be successful, those decisions have to be right. In this article authors investigate if the cumulative prospect theory is applicable to managerial decision making and describe some divergent views about the theory. They also explore risk perception under the influence of decision framing. Risk propensity too is explored as it is an alternative way of predicting decision-makers behaviour.
JEL classification: M2
Key words: prospect theory, cumulative prospect theory, decision making
Income Tax Progressivity in Croatia (1995-2002)
Marina Kesner-Skreb ; Sanja Madzarevic-Sujster
Abstract: The aim of this study are twofold: first to determine how progressive the income tax is in Croatia and second, to examine if progressivity has changed during the period from 1995 to 2002. The reason for addressing this question is that conventional wisdom that prevails in Croatia is that the overall tax burden is unfairly distributed, i.e. that the system is not progressive enough. Due to data constraints, the progressivity of the overall tax system could not be assessed, so the authors had to be satisfied only with the progressivity of the income tax.
JEL Classification: H23, H24
Key words: Croatia, income tax progressivity
The Estimation of 1910-1989 Per Capita GDP in Croatia
Josip Tica
Abstract: In Croatia, the record of national income is rather poor in the nineteenth century as well as in the twentieth century. Therefore the goal of this paper is to estimate GDP per capita in Croatia during 1910-1989. The methodology is based on ‘backcasting’ technique that has resulted in ten statistically significant estimates of GDP per capita of Croatia during 1910-1989. Furthermore, obtained data is combined with Good’s and Maddison’s data for the purpose of cross-country comparison of GDP per capita throughout 1870-2000.
JEL Classification: N30
Key words: GDP estimate, cross-country analysis, convergence, development gap
|
