Credit Constraint Exports in Countries with Different Degrees of Contract Enforcement

Guo, Zi-Yi; Luo, Yangxiaoteng

doi:10.5296/ber.v7i1.10923

Cited by 9 publications

(9 citation statements)

References 11 publications

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“…For consumers, this study can help consumers to more clearly understand their behavioral habits and thinking limitations in the online shopping environment and online service customization. Both consumers and firms suffer from financial constraints (Guo & Luo, 2017). Consumers are often irrational in their decision-making and are easily to be influenced by the product/service framing approach.…”

Section: Discussion and Implicationmentioning

confidence: 99%

The Influence of Framing Effects on Consumer Decision-Making on Online Platforms

Hu¹,

Li²

2019

BMR

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Focusing on online electronics sales and online travel service customization, the present research employed two experiments to examine the framing effects on consumer decision making in the context of internet marketing. Study1 showed that combined (vs. partitioned) pricing strategy can promote consumers’ purchase intention on e-commerce platforms. Study 2 demonstrated that downgrade (vs. upgrade) framing approach can lead to higher total sum price and less change on the default package in travel package customization settings. The results have significantly implications for marketing management in the context of internet marketing.

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Section: Discussion and Implicationmentioning

confidence: 99%

The Influence of Framing Effects on Consumer Decision-Making on Online Platforms

Hu¹,

Li²

2019

BMR

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“…Jamal and Tan (2010) find in an experiment using experienced financial managers that a more principles-based standard system improves financial reporting quality, but only in cases where auditors are in a more principles-based mindset. Guo and Luo (2017) show that in countries with strong contract enforcement, companies tend to have higher exports, and the exports go to more destinations.…”

Section: Literature Reviewmentioning

confidence: 99%

Principles-Based Accounting Standards, Earnings Management and Price Efficiency

Yampuler

2019

AFR

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The issue of principles-based accounting standards has been attracting growing interest since the emergence of the International Financial Reporting Standards (IFRS) as a global phenomenon, and the United States consideration of IFRS adoption. This paper studies the effect of a move towards principles-based accounting standards on price efficiency in the equity market. I assume a move towards principles-based standards requires the firm’s manager to use more of his private, though more subjective, information for financial reporting. I model the manager’s reporting decision as a trade-off between increased compensation through earnings management and a cost associated with earnings management (such as litigation, SEC enforcement, and manipulation effort). I find that the effect of a move towards principles-based accounting standards on price efficiency is non-monotonic. When standards are highly rules-based, reducing the use of rules-based standards increases price efficiency. However, at some point, this relation reverses. The optimal mix of rules and principles reflects a trade-off between two types of effects on price efficiency: predictive ability and comparability. In addition, expected earnings management is non-monotonic in the use of rules-based standards. Finally, I find that rules intensity and managerial compensation incentives act as complements, such that higher managerial compensation incentives require more rules-based standards for price efficiency to be maximized.

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“…Assuming imperfect credit markets, Guo and Luo (2017) noted that since companies need to pay sunk costs before exporting their products, even when profitable, they find it difficult to access credit from foreign markets. However, a country like the US with a strong contractual enforcement regime, companies can export to more destinations.…”

Section: Business and Economic Researchmentioning

confidence: 99%

“…However, a country like the US with a strong contractual enforcement regime, companies can export to more destinations. Contrariwise, a weaker contractual enforcement regime denies companies the requisite credit that would have otherwise allowed for export to more destinations (Guo & Luo, 2017). However, for companies with either very high or very low productivity, the foregoing does not happen.…”

Section: Business and Economic Researchmentioning

confidence: 99%

The Scope Taxation in Influencing Entrepreneurship: Historical Overview of Tax Policies

Martín

2019

BER

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Policymakers constantly face the challenge of aligning micro- and macroeconomic policies with the existing needs of the social, political and economic facets of their areas of jurisdiction. Given the pivotal role played by taxation in any economy, it is not surprising that many countries often turn to tax breaks as a method of easing pressure on existing enterprises with the hope of sparking investment. One common explanation for issuing such breaks is that taxation affects microeconomic decisions undertaken by organizations in terms of investments, innovation and job creation and policies of the existing tax regime directly affect opportunities for enterprises that may seek to venture beyond the boundaries of a taxation authority’s area of jurisdiction. However, empirically, the world of entrepreneurship is difficult to analyze. This is especially true when identifying the relationship between tax- promoted economic activities of entrepreneurs and the overall behavior of different businesses. This paper reviews the scope of taxation within the US’s economic policy through a historical analysis of the manner in which the Bush, Obama and Trump administrations utilized policy tools to shape the course of the country’s micro- and macro-economic conditions.

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Credit Constraint Exports in Countries with Different Degrees of Contract Enforcement

Cited by 9 publications

References 11 publications

The Influence of Framing Effects on Consumer Decision-Making on Online Platforms

The Influence of Framing Effects on Consumer Decision-Making on Online Platforms

Principles-Based Accounting Standards, Earnings Management and Price Efficiency

The Scope Taxation in Influencing Entrepreneurship: Historical Overview of Tax Policies

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