Peter Koveos

R/S analysis of foreign exchange rates under two international monetary regimes

Abstract The purpose of this study is to examine empirically the behavior of foreign exchange markets during the most recent experiences with fixed and flexible rates. Specifically, this study explores the possibility that long-term dependence is present in the exchange rate series for the British pound, French franc, and German mark in terms of the U.S. dollar. Using R/S analysis, positive long-term dependence is uncovered for each exchange rate during the flexible regime but negative dependence is found in the fixed period.

Financial services for the poor: assessing microfinance institutions

The objective of this study is to analyze the framework within which microfinance institutions (MFIs) deliver their services and provide an assessment of their operations and financial management. These institutions are examined because of their current importance to a special group of consumers, primarily the poor and disenfranchised in the developing world, and of their future promise as an economic development solution. Since the objective of these institutions is somewhat unique, the manner of their assessment must also differ from that used to assess the performance of traditional financial intermediaries. In particular, assessment of MFIs must recognize their dual (bank and development instrument) status. Their efficiency, then, must be analyzed in terms of its economic (or financial) dimension as well as its social dimension. The first dimension may be examined with traditional measures, while examination of the second requires measures that reflect the MFI’s social objectives. In order to accommodate the special nature of MFIs, this study proposes the use of a Balanced Scorecard approach. It contributes to the study of financial institution performance by examining a non‐traditional group of institutions using a variety of assessment measures. The findings should be of value to those interested in the financial sector as well as those involved in public policy decision making.

Market efficiency, purchasing power parity, and black markets: Evidence from latin american countries

ZusammenfassungMarkteffizienz, KaufkraftparitÄt und SchwarzmÄrkte: Evidenz aus lateinamerikanischen LÄndern. - Die Arbeit verwendet den von Rogalski/Vinso und Roll entwickelten theoretischen Rahmen, um das Verhalten der WÄhrungen von Kanada und den USA sowie von ausgewÄhlten lateinamerikanischen LÄndern auf dem dortigen Schwarzmarkt zu untersuchen. Abweichungen von der KaufkraftparitÄt werden analysiert, ebenso die Beziehungen zwischen diesen Abweichungen, den Wechselkursen und Inflationsdifferentialen, um die Vereinbarkeit der KaufkraftparitÄt mit der Konzeption der effizienten MÄrkte und mit dem monetÄren Ansatz zu prüfen. Die Ergebnisse stützen im allgemeinen die Hypothese der effizienten MÄrkte und liefern interessante Informationen über eine normalerweise vernachlÄssigte Gruppe von Wechselkursen.RésuméEfficacité de marché, parité de pouvoir d’achat et marchés noirs: Evidence des pays latino-américains. - Les auteurs utilisent le cadre théorique développé par Rogalski/ Vinso et Roll pour analyser la performance des monnaies de marché noir des pays latinoaméricains sélectionnés ainsi que des monnaies des E. U. et de Canada. Le comportement des déviations de la parité du pouvoir d’achat (PPA) est examiné aussi bien que les relations entre ces déviations, les taux de change et les différences d’inflation pour analyser la compatibilité de la PPA avec la conception des marchés efficients et l’approche monétaire. Les résultats supportent généralement l’hypothèse de marché efficient et offrent des informations intéressantes sur un groupe des taux de change généralement négligé.ResumenMercados eficientes, paridad del poder adquisitivo y mercados negros: Evidencia de países latinoamericanos. - En este trabajo se utiliza el marco teórico desarrollado por Rogalski/Vinso y por Roll para analizar el funcionamiento de mercados negros seleccionados en Latinoamérica, los EEUU y Canadá. Se examina el comportamiento de las desviaciones de la paridad del poder adquisitivo (PPA) como también las relaciones entre las desviaciones, los tipos de cambio y las diferencias entre las tasas de inflatión con el fin de investigar la compatibilidad del PPA con los enfoques de mercados eficientes y monetario. Los resultados obtenidos apoyan en general la hipótesis de mercodos eficientes e iluminan aspectos interesantes de tipos de cambio habitualmente obviados.

A CELEBRATION OF ENTREPRENEURSHIP SCHOLARSHIP

The Annual USASBE Conference recently took place in Nashville, TN (January 14–17, 2010). The importance of this Conference and similar events to the field of entrepreneurship cannot be overstated. Such Conferences must become the first destination for entrepreneurship scholars. Much can be gained, of course, by attending the Academy of Management, Allied Social Sciences Association and other professional meetings sponsored by the so-called “parent” disciplines. However, it is time to reverse the intellectual capital flow! It is the field of entrepreneurship that has the room for dynamic growth other disciplines may lack. For the full extent of this growth to be realized, entrepreneurship scholars must exchange ideas, network and foster the development of the field at Entrepreneurship Conferences. Similarly, the best of entrepreneurship research should be submitted to those journals dedicated to entrepreneurship, instead of those journals for which entrepreneurship articles are considered second class citizens. It’s a win-win situation! The articles included in this issue of the Journal certainly fit in the category of the best in entrepreneurship research. I want to thank the authors and reviewers involved with the issue! I hope our readers will find these studies to be both interesting and useful. The study by Maribel Mojica, Tesfa Gebremedhin and Peter Schaeffer deals with one of the most important challenges faced by entrepreneurship: the alleviation of poverty. Even more significantly, A County-Level Assessment of Entrepreneurship and Economic Development in Appalachia Using Simultaneous Equations uses the region of Appalachia as the background. The authors empirically estimate the effects of entrepreneurship on economic growth and development and offer appropriate policy implications. Entrepreneurial undertakings face a number of significant challenges. Financing each level of the business under various conditions of adversity is certainly one of the most serious of such challenges. The two articles that follow, Lynn Neeley’s and Howard Van Auken’s Differences Between Female and Male Entrepreneurs’ Use of Bootstrap Financing and Microfinance in Cultures of Non-Repayment by Marc Epstein and Kristi Yuthas present two useful perspectives on the issue. Norman Wright, Jeff Caneen, Nathan Alexander and Andrew Gomez also deal with financing issues. Their Conservation Area Start-Ups: Combining Theory and Practice applies previous research to small, indigenous start-ups in and around conservation areas. Journal of Developmental Entrepreneurship Vol. 15, No. 1 (2010) 1–2

Economies in Transition:Conception, Status and Prospects

To date, the record of economic transition has decidedly been mixed. The worldwide political climate is still in favor of economic reform and the process continues to have considerable momentum. On the other hand, this process now faces a number of formidable obstacles. There appears to be general agreement that in many countries the promise of a better standard of living which economic transition offers to the mass of the citizenry has failed to produce the rapid and dramatic results hoped for. There is an increasing conflict of interest between multinational firms and the national business community. Moreover, many transition economies have experienced a slowing of economic growth in real terms and social services have been severely cut. This book deals with the development of those forces that have played a major role in the successes and failures of economic transition. Its distinctive feature is that it does this from the perspective of economic, political and social analysis, taking into account both theoretical constructs and economic realities for those countries which have attempted the grand experiment with economic transition.

ENTREPRENEURSHIP IS NOT JUST A WESTERN CONCEPT

For most of us, the western world is where everything worthwhile happens! This home bias extends to concepts and practices that make the world go. Entrepreneurship has become such a concept. The September 2014 issue of the Journal proves otherwise. Entrepreneurship is alive and well in Asia, Africa and even in America’s old nemesis: Cuba. It exists not only in developed economies (Korea), but in economies whose development path has not been designed yet (Lao PDR). It offers hope even to those who find themselves born into extreme poverty, the slums of Mumbai. If it works there, why not in Brazil’s favelas? Why not in Myanmar or Mali? What is stopping us from putting it to work and allow the poorest to dream and believe? The first article of this issue is U.S.-based, but the theoretical framework used could be applied elsewhere. Do Women Fare Better in Female-Owned Businesses? is the questions asked by Pat Roberson-Saunders, Raymond Smith and Rajni Goel. The authors use a human resource management (HRM) framework to extend to female-owned businesses Kanter’s homosocial reproduction thesis that increased numbers of women in positions of management would increase hiring and advancement of women. Results show that, at each step in the HRM process, female business owners fulfill expectations by hiring, promoting and retaining significantly more women than male business owner counterparts. In addition, there were significant differences between minority and non-minority female business owners in the proportion of co-racial managers. Moreover, Whites and Blacks showed a significant preference for co-racial managers, while Hispanics and Asians did not. Dianne Welsh, Gyu Kim, Esra Memili and Eugene Kaciak investigate the determinants of Korean female entrepreneurs’ firm performance. The Influence of Family Support and Personal Problems on Firm Performance: The Case of Korean Female Entrepreneurs examines the impact of personal problems and family support and their interaction effects on firm performance. The authors find empirical support for the negative effects of personal problems on firm performance and positive moderation effects of family support on this link. They then discuss implications and future research potential. The article by Chandralekha Ghosh and Samapti Guha addresses one of the challenges faced by a group of microenterprises operating in an adverse and almost destitute Journal of Developmental Entrepreneurship Vol. 19, No. 3 (2014) 1401002 (3 pages)

REVERSE INNOVATION: THE INTERNATIONAL OPPORTUNITY

In a recent Harvard Business Press book, Vijay Govindarajan and Chris Trimble (2012)discuss the importance of innovating for international markets. The subtitle of the book isCreate Far from Home, Win Everywhere. Innovation and Entrepreneurship can and shouldexpand beyond national borders. The next frontiers are not in the United States. They arein China, India, other emerging markets; they are in places such as Africa, which areseemingly underdeveloped at this time. Entrepreneurs must learn how to exploit oppor-tunities in those markets and, more importantly, how to learn from the “clean-slate”innovations need to address the needs gaps between emerging and developed markets.For students of entrepreneurship, Reverse Innovation is a must read! It illustrates notonly the necessity of conducting a thorough study of the differences of people from placeto place and cultural and taste differences, but also the similarities among peoples. Thestudy of Global Entrepreneurship should be emphasized by all of us. If you have not beendoing that already, it’s time to start!JDE’s first issue of 2013 features a number of articles pertaining to international/globalentrepreneurship and microenterprise issues. The first article is dedicated to the memory ofone of its authors, Jocelyn Sackey. Jocelyn, Ylva Faltholm and Halkan Yllinenpaaexamine entrepreneurship and ethics from the perspective of Ghanaian entrepreneurs insmall and medium-size enterprises. Working With or Against the System: Ethical Dilemmafor Entrepreneurship in Ghana extends our understanding of issues affecting entrepre-neurial behavior in developing countries, such as Ghana.A Resource-Based View of New Firm Survival: New Perspectives on the Role ofIndustry and Exit Route explores the framework leading to new firm survival or exit. SusanColeman, Carmen Cotei and Joseph Farhat base their analysis on the Resource-BasedView and posit hypotheses about the impact of both tangible and intangible resources onnew firm survival in both the service and non-service sectors. Their results point to anumber of similar factors behind the survival of both types of firms. The findings alsoindicate a relationship between human capital, industry and exit route for the firms in thesample.Andrew Van Hulten and Abdullah Ahmed test the hypothesis that Australian migrantentrepreneurs have less difficulty accessing finance than their Australia-born counterparts.

Entrepreneurship And Economic Freedom: The Visible Hand Of Public Policy

For the past 13 years, the Heritage Foundation and the Wall Street Journal have been publishing their Index of Economic Freedom (Kane, Holmes and O’Grady, 2007). The subtitle of the 2007 report, The Link between Economic Opportunity and Prosperity, provides us with a glimpse of the importance for economic systems that the authors ascribe to the practice of economic freedom. For those pursuing the study of entrepreneurship, the linkage between economic freedom and economic opportunity is of special interest and significance. The identification and exploitation of opportunity is fundamental to the practice of entrepreneurship. The presence and practice of economic freedom around the world, then, is the cornerstone of the sustainable nature of entrepreneurship. Amidst the good news about the recent performance of the global economy, the 2007 Report cautions us that there are disturbing signs of erosion of economic freedom. From the US to Europe to Asia, at the margin, policy changes are putting barriers on the freedom of economic inputs and outputs to cross national borders. This is a trend worth watching! For the pessimists, erosion of economic freedom, if perpetuated, could have disastrous effects on national and international entrepreneurship. The optimists, on the other hand, maintain that markets will again triumph over governments, albeit in the long-run. In the meanwhile, of course, opportunities are being washed away! This issue contains articles that deal both with public policy and private initiative. The first contribution is by Robert Plant. Using the background of location theory and a sample of firms funded in conjunction with the Florida Venture Forum in his “An Empirical Analysis: Venture Capital Clusters and Firm Migration,” Plant finds that a good number of funded firms are located within venture capital clusters. He also finds that funded entities are younger than non-funded ones and are more likely to be acquired and move from their original location. The article carries useful lessons for economic development officials as well as funded entrepreneurs. Josee Audet and Etienne St-Jean tell us that public authorities have established numerous agencies as well as venture development support and assistance measures for SMEs. Unfortunately, in “Factors Affecting the Use of Public Support Services by SME Owners: Evidence from a Periphery Region of Canada,” they find that SME owner-managers do not take full advantage of these services. They delve into the reasons for their findings and make an effort to pinpoint the root of the problem.

Applying an ontology-augmenting XBRL model to accounting information system for business integration

Abstract The field of accounting information analysis and computing is a conceptually rich domain. The eXtensible Business Reporting Language is an XML vocabulary designed to simplify the automation of exchanging financial information, there exist some important limitations in the current version, more insightful semantics and a sharper level of representation are required to describe and exploit complex information. We design an ontology-augmenting XBRL extension model and a financial service matching framework for accounting information integration by adopting Semantic Web technologies, and compute a fuzzy-based semantic similarity to integrate two financial concepts. The model can provide more insightful semantics for financial analysis.

THE JDE CONTINUES TO SERVE THE PROFESSION

As the JDE enters into its second decade of both electronic and print publishing, I am proud to present an excellent selection of articles included in the June, 2015 version of our journal. In the first article of the issue, Bridging The Gender Gap in Entrepreneurship: An Empirical Analysis, Elvin Afandi and Majid Kermani explore the role of inequality in individual and country attributes between men and women in bridging the gender entrepreneurship gap. Using Oaxaca-type decomposition and its extensions, they analyze gender differences with respect to individual and country characteristics in explaining the entrepreneurship gender gap as well as return differentials. However, they leave the door open for the existence of gender discrimination. Samuel Dawa and Rebecca Namatovu examine the influence of social networks on the growth aspirations of female entrepreneurs. In their article, Social Networks and Growth of Female-Owned Ventures: A Sub-Saharan Perspective, the authors find a relationship between belonging to a social network and growth. However, they also point out that the challenges facing female entrepreneurs in this context negate the influence of social networks on growth. They also make the point that the metrics used to measure entrepreneurship related constructs are biased not only against women but even the developing country context. The next two articles pertain to China’s entrepreneurship movement. Birton Cowden, Jintong Tang, Jun Yang and Yuli Zhang use the Institution-Based View of Entrepreneurship to argue that the varying institutions within the subnational regions influence the innovativeness of new ventures. In Exploring Innovative New Ventures in China and the United States, the authors find that this variation in innovativeness of new ventures is more salient in the Chinese setting than the United States setting because of the unevenness of institutional transitions within Chinese subnational regions. Their results provide useful implications on the appropriateness of making comparisons at a country level. Social Networks, Cognition and Risk Recognition in New Ventures: Evidence from China applies cognitive information-processing theory and develops a theoretical framework that explores the interactive influences of entrepreneurs’ social networks and their Journal of Developmental Entrepreneurship Vol. 20, No. 2 (2015) 1501002 (2 pages)