Moshfique Uddin

An analysis of short-run performance of cross-border mergers and acquisitions: Evidence from the UK acquiring firms

Purpose - The aim of this paper is to consider the short-run performance of UK firms acquiring foreign target firms over a period of 1994-2003 and to explore the impact of deal size and other firm-specific factors on performance. Cross-border mergers and acquisitions have witnessed a substantial growth worldwide, with the UK being one of the top acquiring nations in the global market for corporate control. Design/methodology/approach - The paper first uses event study methodology to analyse short-run share price performance. Then a univariate analysis to examine the factors influencing the short-run performance based on a sample of 373 acquisitions over the period of 1994 to 2003. Findings - The study finds that the UK acquirers do not earn statistically significant positive abnormal returns in the short-run. Univariate analysis shows that short-run performance of UK acquirers is influenced by the form of target, acquisition strategy, geographical origin of target firm and the payment methods. However, the study finds no support for size of acquisition deal as a determinant of performance of acquiring firm. Originality/value - The paper attempts to shed more light and extend existing research in cross-border mergers and acquisitions by examining short-run performance and factors influencing performance.

Entrepreneurs’ Optimism, Cognitive Style and Persistence

Purpose – The purpose of this paper is to examine the moderating effects of cognitive style dimensions on the relationship between entrepreneurs’ optimism and persistence. Design/methodology/approach – This theoretically derived research model is empirically validated using survey data from 198 small and medium-sized enterprises in Ghana. Findings – The study’s empirical findings are that the relationship between entrepreneurs’ optimism and entrepreneurial persistence is enhanced at higher levels of cognitive planning and creating styles. Somewhat interestingly, cognitive knowing style negatively moderates the relationship between optimism and entrepreneurial persistence. Research limitations/implications – The cross-sectional design of the study does not permit causal inferences to be made regarding the variables examined. Future studies may use longitudinal design to examine the causal links of the variables. Practical implications – The results of this paper can assist entrepreneurs and policy-makers i...

Barriers to enter in foreign markets: evidence from SMEs in emerging market

Purpose Foreign market entry is considered as a key strategy to grow and survive over longer period of time for small and medium enterprises (SMEs). The decision to enter a foreign market is not a straightforward story. Considering resource limitation, SMEs need to analyse the key barriers to entry in foreign markets very carefully. The purpose of this paper is to identify these barriers for the SMEs in a developing country. Design/methodology/approach This study has used primary data collected through questionnaires from 212 Bangladeshi SMEs. A mixed method data analysis technique is used to analyse the firms both from micro- and macro-levels. Following the running example-based case study approach, this study has developed and validated a partial least square-based structural model to assess the key barriers to entry in foreign markets. Findings This study has identified the key socio-economic barriers faced by the SMEs in a developing country to enter in foreign markets. It has successfully framed the socio-economic barriers to enter in foreign markets for Bangladeshi SMEs as a second-order hierarchical model. Originality/value It is often believed that foreign market entry is more affected by social barriers as explained by the existing theories including the Uppsala model. This study, however, revealed that the international market expansions of SMEs in developing countries are more sensitive to the economic barriers.

Risk-taking Propensity, Managerial Network Ties and Firm Performance in an Emerging Economy

The objective of the study was to examine the effect of entrepreneurs’ risk-taking propensity on firm performance and the moderating role of managerial network ties on this relationship in a sub-Saharan economy. This theoretically derived research model is empirically validated using survey data from 298 small and medium-sized enterprises (SMEs) in Ghana. The study’s empirical findings are that high levels of entrepreneurs’ risk-taking propensity enhance firm performance. This relationship is amplified when entrepreneurs cultivate stronger business, political and community network ties.

Linguistic gender marking gap and female staffing at MNC’s

This paper presents the impact of the linguistic gender marking gap on expatriate female staffing decisions in a multinational company. Transaction cost theory postulates that due to cultural differences, integration between parent and subsidiary companies becomes complex and costly. However, staffing from parent organisations could be helpful to minimise the cultural conflict by establishing better control and hence reducing the transaction cost. Language is considered as one of the major components that shapes culture, and linguistic gender marking gap could cause a difference in attitude towards male and female staff members from parent companies. Due to the nature of linguistic structures, which are embedded in ancestral culture and have a cognitive effect on speakers, the gap has two levels. The first is the gap between home and host countries’ languages. The second is between the official and informal languages used by the headquarters and the subsidiary. The analytical model, using an innovative gender gap variable, supports two carefully developed propositions, that the success of expatriate staffing at managerial level depends on the linguistic gender marking gap between home and host country, and that use of organisational language in subsidiaries reduces the linguistic gender marking gap between them.

Financing behaviour of R&D investment in the emerging markets: the role of alliance and financial system: Financing behaviour of R&D investment in the emerging markets

This paper examines the financing behaviour of R&D investments in emerging markets. Drawing on institutional theory and using panel data of generalized methods of moment (GMM) estimation for a sample of 302 firms from 20 countries during the period 2003-2015, we find that emerging market firms tend to use internal funds for financing R&D investments. Interesting results emerged when the sample was divided as alliance and non-alliance firms, and bank-based and market-based financial systems. The results show that R&D financing behaves differently for alliance and non-alliance firms. Alliance firms use both internal and external funds for R&D investments, while non-alliance firms do not use external funds. We also document that a country’s financial system influences the choice of available sources of finance. Firms from countries that follow a bank-based financial system tend to rely on external funds while firms from countries that follow a market-based financial system depend more on internal funds for financing R&D investments. This study is important as it provides new evidence on financing R&D investments in emerging countries taking into account the institutional arguments of financing choices, and so should guide stakeholders about appropriate sources of R&D financing.

Vertical Monopoly Power, Profit and Risk: The British Beer Industry, c.1970-c.2004

ABSTRACT By investigating surplus and risk distribution in the British brewing industry, this article shows that risk and risk transfer are important dimensions of vertical supply chain relationships. A comparative financial analysis shows the effects of models of vertical ownership before and after the break-up of producer controlled tenanted estates and the strategy and performance of pub-owning companies. Contrasting mechanisms for controlling the capture of surplus and division of risk are evaluated. The article complements prior studies that have concentrated on the brewers by assessing winners and losers amongst pub owning companies and tenants in different models of vertical organisation and how they might be effectively regulated.