Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Essays on Financing and Returns on Investment
Jönköping University, Jönköping International Business School, JIBS, Center for Family Enterprise and Ownership. Jönköping University, Jönköping International Business School, JIBS, Economics, Finance and Statistics.
2011 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This dissertation consists of an introductory chapter and three independent essays on financing investment and their returns. The first essay studies the impact of remittances on domestic investment. The analysis is carried out with a focus on the moderating roles of domestic financial development and institutional quality. The empirical results suggest that remittance inflows are associated with increased domestic investment spending, particularly under conditions of inadequate financial intermediation and poor institutional quality. The second essay evaluates whether remittance inflows into the developing world impedes or spurs manufacturing growth. This study uses manufacturing data on a sample of 40 remittance dependent economies over the period from 1991 to 2004. The results suggest that remittance inflows accelerate manufacturing growth. This evidence is robust to industry- and year-specific effects, a range of country level control variables, and a number of estimators. The final essay examines the monitoring role of large shareholders and returns on investment. Specifically, the paper investigates the relevance of intrinsic motives of the large shareholder to monitor management in order to induce optimal return on investment. The findings suggest that large shareholders are actuated by both intrinsic and extrinsic motives to minimize managerial opportunism and inefficiency.

Place, publisher, year, edition, pages
Jönköping International Business School , 2011. , 165 p.
Series
JIBS Dissertation Series, ISSN 1403-0470 ; 74
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-17704ISBN: 978-91-86345-25-9 (print)OAI: oai:DiVA.org:hj-17704DiVA: diva2:505220
Opponent
Supervisors
Available from: 2012-02-23 Created: 2012-02-23 Last updated: 2012-02-23Bibliographically approved
List of papers
1. Impact of remittances on domestic investment: the role of institutional and financial development
Open this publication in new window or tab >>Impact of remittances on domestic investment: the role of institutional and financial development
2013 (English)In: Global Review of Accounting and Finance, ISSN 1838-1413, Vol. 4, no 2, 65-84 p.Article in journal (Other academic) Published
Abstract [en]

A standard view in development economics is that developing countries are unable to undertake the required investment because of inadequate financing, poor institutions and undeveloped financial markets. This paper investigates the impact of remittance inflows into the developing countries on investment under different levels of institutional and financial development. The empirical analysis is carried on a sample of 79 developing countries covering the period 1995-2005. The estimates suggest that remittance inflows, sound institutions and well-developed financial sector increase domestic investment. Moreover, the results also indicate that when the institutional setting and the depth of financial intermediation are such that access to external finance is limited, remittance inflows are an important source of financing investment. The findings are robust to alternative static and dynamic panel estimators and different measures of institutional quality and financial development. An important implication of these findings is that the extent to which an economy benefits from remittance inflows is driven by the prevailing institutional environment and the level of financial development.

National Category
Economics
Identifiers
urn:nbn:se:hj:diva-17702 (URN)
Available from: 2012-02-23 Created: 2012-02-23 Last updated: 2014-03-10Bibliographically approved
2. Do Remittance Inflows Promote Manufacturing Growth?
Open this publication in new window or tab >>Do Remittance Inflows Promote Manufacturing Growth?
2013 (English)In: The annals of regional science, ISSN 0570-1864, E-ISSN 1432-0592, Vol. 51, no 1, 89-111 p.Article in journal (Refereed) Published
Abstract [en]

Studies show that manufacturing growth is fundamental to sustained economic growth and development. However, recent Dutch disease perspective studies suggest that remittance inflows have the potential to impede manufacturing growth of the recipient economies. This paper contributes to the literature by investigating the effect of remittance inflows on manufacturing growth directly. The main claim of the paper is that the Dutch disease perspective identifies only one of the several channels through which remittance inflows impacts on manufacturing growth and hence unlikely to reflect the ultimate impact of remittances on manufacturing growth. This study uses the 3-digit level manufacturing data on a sample of 40 remittance-dependent economies over the period from 1991 to 2004. The empirical results indicate positive and robust effect of remittance inflows on manufacturing growth. This finding implies that one of the mechanisms through which remittance inflows could lift standards of living in poor countries is via the impact on manufacturing growth.

National Category
Economics
Identifiers
urn:nbn:se:hj:diva-17701 (URN)10.1007/s00168-012-0529-x (DOI)
Available from: 2012-02-23 Created: 2012-02-23 Last updated: 2017-12-07Bibliographically approved
3. Foundation Control and Investment Performance: Do intrinsic aspects of ownership and control matter?
Open this publication in new window or tab >>Foundation Control and Investment Performance: Do intrinsic aspects of ownership and control matter?
2012 (English)In: Global Economy & Finance Journal, ISSN 1834-5883, Vol. 5, no 2, 58-78 p.Article in journal (Refereed) Published
Abstract [en]

This paper investigates the relevance of intrinsic motives in the value-enhancing monitoring role of large shareholders. A standard view in the corporate governance literature is that the large shareholder monitors management precisely because of personal financial interests. This paper argues that the exclusive focus on extrinsic considerations sidesteps the intrinsic motives of the large shareholder to minimize managerial opportunism and inefficiency. The paper sheds light on the importance of the intrinsic aspects of firm ownership and control by examining the relative investment performance of foundation controlled firms listed on the Stockholm Stock Exchange during 1999-2005. Foundations are not-for-profit organizations with no residual claimants and thus largely lack the personal financial motives to monitor management. The empirical analysis is carried out in the framework of the marginal q methodology. The results suggest that whereas the typical firm in the sample overinvests, the extent of overinvestment is significantly lower in firms with at least one large shareholder. More importantly, the results suggest that even though foundations largely lack the residual claimants and, hence, the personal financial interest, they are as efficient as other large shareholders in curbing managerial opportunism. This finding is consistent with the view that large shareholders are not only actuated by extrinsic motives to minimize managerial opportunism and inefficiency. Intrinsic motives matter.

Keyword
Large shareholders, foundations, non-personal wealth incentives, social embeddedness, investment performance
National Category
Economics
Identifiers
urn:nbn:se:hj:diva-17703 (URN)
Available from: 2012-02-23 Created: 2012-02-23 Last updated: 2013-01-09Bibliographically approved

Open Access in DiVA

fulltext(425 kB)2322 downloads
File information
File name FULLTEXT01.pdfFile size 425 kBChecksum SHA-512
97bda306714254b7472f2b6660657a0645e5c18dd28cd5f9f35733efdb1d18e07095b6c11318884ea78bd3bd84e7ba887f5ecab84594bc9fcd6ccaaea33bffb0
Type fulltextMimetype application/pdf

Search in DiVA

By author/editor
Dzansi, James
By organisation
JIBS, Center for Family Enterprise and OwnershipJIBS, Economics, Finance and Statistics
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 2322 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

isbn
urn-nbn

Altmetric score

isbn
urn-nbn
Total: 897 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf