Daniel Borgia

How does microfinance enhance entrepreneurial outcomes in emerging economies? The mediating mechanisms of psychological and social capital

In this article, a conceptual framework and research propositions are developed to explain how microfinance provision can translate into new venture creation and existing venture growth in an emerging economy context by engendering higher levels of psychological and social capital in clients. In doing this, the extent to which microfinance institutions provide business support and opportunities for social interaction are identified as factors which may strengthen the impact of microfinance provision on psychological and social capital, especially for poor entrepreneurs in resource-constrained settings. The conceptual framework and research propositions developed will be of use to academics in designing an agenda for future empirical research. In addition, they will help policymakers and microfinance providers to better design microfinance initiatives that enhance the well-being of clients and maximise their entrepreneurial outcomes.

A Comparison of Western Business Instruction in China with U.S. Instruction: A Case Study of Perceived Program Emphases and Satisfaction Levels.

This research presents a case study of a joint business degree program between an Association to Advance Collegiate Schools of Business International (AACSB‐I) accredited business school in the United States and a Chinese PhD granting partner university. The case investigates the impact of a U.S.‐based curriculum, taught by U.S. instructors and which uses all English instruction on Chinese student perceptions of program emphases and satisfaction. It compares these perceptions with those of U.S. sister students. The comparison reveals program dissatisfaction among Chinese students when contrasted to U.S. students and for the most part a failure to attend to the program emphases of the West. Reasons for the departures are explored and strategies for improvement are developed.

Using an Internet‐based distance learning model to teach introductory finance

This paper focuses on the development of an Internet‐based distance learning model for teaching the introductory finance course in the Finance Department at Florida Gulf Coast University (FGCU), America’s newest institution of higher education which opened in August 1997. An important component of the mission of FGCU is the incorporation of technology and the needs of the regional community into curriculum design. The department felt it was important to develop a separate Internet‐based course as an alternative to the traditional in‐class introductory finance course. In this Internet‐based course students are required to participate in a “boot camp” for the first few weeks, which covers only the most complex aspects of the course. After this initial period, the course is completely Web‐based in design. The Web page for this course, located at http://www.tmag.com/sgarrison/courses/fin3240d/index.html, contains a variety of pedagogical materials to help students learn and comprehend course content.

Assessing Materialism among the Future Elites of China

ABSTRACT. This study assesses Chinese college-attending future elites as to their materialism values. Its intent is to reveal suggestive insights into the extent of materialism being manifested for Chinas needed increase in domestic consumption. The results revealed a bifurcation of materialism values, and theory-based difference assessments validated the study results. The most powerful predictors of materialism were vertical individualism, vertical collectivism, and life satisfaction, with the latter evidencing an inverse relationship. The studys overall results suggest that the materialistic values of future elites may both facilitate and impede Chinas economic prosperity. Insights are also revealed into the unique nature of materialism among future elites, and strategic perspectives are presented.

The Influence of Fundamental Factors on Chinese Residential Real Estate Prices: A Unique Data Panel Study

Using a unique set of quarterly residential real estate price data for 12 major Chinese cities during the period from 1999 to 2010, this paper employs both relative measures and well-specified regression models to examine the impact of key fundamental factors on home prices. Our empirical results confirm that per capita GDP growth, average wage rates, land prices, population, and implicit user costs have a significant and positive influence on Chinese residential real estate prices, with land prices and implicit user costs having the greatest impact.

Outward foreign direct investment from emerging countries: theoretical extension and evidence from China

ABSTRACT Internationalization of emerging market firms (EMFs) is challenging pre-eminent theories. This article argues that no single existing theory adequately explains EMFs’ pattern for overseas investment. Using case studies and a multi-level approach, our research suggests that EMFs can be categorized into four different clusters based on different rationales, objectives, and motivations. Our findings suggest that existing theories can be useful for explaining the process of internationalization, but this holds only for specific clusters. This is of particular importance for EMFs since the presence and influence of the state on EMFs internationalization is both critical and diverse from developed economies.

The Influence of Formal and Informal Institutions on Microcredit: Financial Inclusion for Micro-Entrepreneurs by Lender Type

This chapter applies the Helmke–Levitsky typology of informal institutions to discuss how the interaction between the formal and informal institutional environment has shaped the development of China’s microfinance industry. The chapter shows that formal regulatory framework influenced commercial ‘for-profit’ microfinance providers (village and township banks or ‘VTBs’) and public interest microfinance providers (microcredit companies or ‘MCCs’) in different ways. While MCCs suffer deficiencies of not being able to accept savings deposits, VTBs are restricted by the inability to charge higher risk-adjusted interest rates. Geographical separation and low levels of out-group trust constrain the development of microfinance organisations, especially when the organisations do not have strong ties to local communities This study was approved by the appropriate university ethics committee and subsequently performed in accordance with the ethical standards in the 1964 Declaration of Helsinki. All persons gave their informed consent prior to inclusion in the study. Details disclosing the identity of the subjects under study have been omitted. The authors have full control of the primary data and have no financial relationship or conflict of interest with the organisations involved in the research.

Valuation of Chinese Equity Based on Implied Growth Rates

This article introduces a valuation method that can be used to back out the short-term expected growth rate implied in the prices of Chinese stocks. The proposed methodology involves reverse-engineering the traditional DCF models, which is then applied to a sample of 467 listed Chinese companies. Our findings show that the implied growth rate generally is much higher than its actual realization, with all median estimation errors larger than 90%. This study has practical applications for investors and traders, since it does not require access to private information or analysts’ estimations and provides a useful tool to critically evaluate Chinese stock prices.