Sellers' inflation, profits and conflict: why can large firms hike prices in an emergency?

The dominant view of inflation holds that it is macroeconomic in origin and must always be tackled with macroeconomic tightening. In contrast, we argue that the US COVID-19 inflation is predominantly a sellers' inflation that derives from microeconomic origins, namely the ability of firms with market power to hike prices. Such firms are price makers, but they only engage in price hikes if they expect their competitors to do the same. This requires an implicit agreement which can be coordinated by sector-wide cost shocks and supply bot-tlenecks. We review the long-standing literature on price-setting in concentrated markets and survey earnings calls and compile firm-level data to derive a three-stage heuristic of the inflationary process: (1) Rising prices in systemically significant upstream sectors due to commodity market dynamics or bottlenecks create windfall profits and provide an impulse for further price hikes. (2) To protect profit margins from rising costs, downstream sectors propagate, or in cases of temporary monopolies due to bottlenecks, amplify price pressures. (3) Labor responds by trying to fend off real wage declines in the conflict stage. We argue that such sellers' inflation generates a general price rise which may be transitory, but can also lead to self-sustaining inflationary spirals under certain conditions. Policy should aim to contain price hikes at the impulse stage to prevent inflation from the onset.

A stimulus-organism-response perspective to examine green hotel patronage intention

PurposeThis study aims to investigate the relationships among monetary cost (stimulus), perceived greenwash fear, attitude and perceived behavioural control (organism-related factors) and green hotel patronage intention (response) using the stimulus-organism-response (S-O-R) model.Design/methodology/approachA total of 262 valid questionnaires were collected. Data were collected using the purposive sampling method and tested using the partial least squares (PLS) approach.FindingsMonetary cost is positively related to only one organism-related factor which is perceived greenwash fear. All organism-related factors are positively related to response, which is green hotel patronage intention. Attitude mediates the relationship between perceived greenwash fear and green hotel patronage intention, as well as perceived behavioural control and green hotel patronage intention.Research limitations/implicationsA longitudinal study can be performed in the future to observe the actual green hotel patronage behaviour of customers.Practical implicationsGreen hoteliers should focus on the development of communication strategies to enhance their corporate reputation. Green hoteliers also need to build trust by showing their green initiatives are genuine, identify consumers who are willing to pay more for green hotels and offer promotions with price incentives such as frequency discounts, coupons and rebates to increase interest and trialability.Originality/valueFew studies have focused on the use of monetary cost as a stimulus in the S-O-R model to predict green hotel patronage intention. This study also tested the mediating effect of attitude, one of the organism-related factors, in the model.

Determinants of Foreign exchange exposure during the COVID-19 crisis: A Multi-country evidence

The research question of which firm-level factors make firms more vulnerable to exchange rate fluctuations during periods of crisis has rarely been explored by prior literature. Using a large sample of 1577 firms from 9 developed and 11 emerging countries, this study presents a comprehensive analysis of how firm-level factors affect firms' foreign exchange exposure before and during the COVID-19 crisis. The results provide evidence of a substantial increase in firms' linear exposure during the COVID-19 period. The cross-sectional analysis reveals that the effects of firm-level variables on exposure are more pronounced during crisis periods and are different from non-crisis periods. Firms that have effective asset utilization or large operating profit margins remain less exposed during times of stress. Contrary to hedging theory, firms that have high incentives to hedge such as firms with high financial leverage become highly exposed to currency fluctuations during crisis periods. The interaction analysis provides further evidence that firms with high leverage can limit their foreign exchange exposure during periods of crisis if they have high asset turnover or high operating profits. The results offer important practical implications to firms for risk management during periods of crisis.

Trends Affecting Biopharmaceutical Manufacturing

The landscape for bioprocessing continues to evolve, driven by many externally imposed trends that have been combined with ongoing technological changes and internal progress in bioprocessing. [...]most ongoing bioprocessing-related trends are not new and are reported after they become evident or familiar, making it difficult to cite when a specific trend starts and ends. The Top 1000+ Global Biopharmaceutical Facilities Index currently tracks over 1900 facilities worldwide with total estimated bioreactor capacity now over 17.3 million litres, including >720 facilities with an >2000 L capacity (2). * More biosimilars, biobetters, and biogenerics, with continued expansion in developed markets and capturing growing market shares in developing countries, due to an increase in prices of the originals. * Single-use bioprocessing systems will continue to rapidly displace commercialscale stainless steel-based manufacturing, both at commercial manufacturing and clinical scales. * Expansion of second-source bioprocessing facilities to combat supply chain issues due to the COVID-19 pandemic. * Flexible manufacturing facilities, including modulation, further aided by the increased adoption of single-use bioprocessing systems. [...]of this build-up and investment, non-pandemic projects continue to be shifted out to contract manufacturing organizations (CMOs).

The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries

This study aims to investigate the nature and intensity of the changes in corporate financial performance due to the corporate social responsibility (CSR) disclosures as a result of certain relationships between corporate governance and company performance in the non-financial sector. This study selected 625 non-financial companies across six organizations for economic cooperations (OECD) countries' stock markets for the period of 10 years (2012–2021). For this qualitative study, corporate governance, financial performance, and corporate social responsibility score data were collected from the DataStream, a reliable database for examining the research on OECD countries' listed companies. For the data analysis we applied various statistical tools such as regression analysis and moderation analysis. The findings of the study show that all attributes of the corporate governance mechanism, except for audit board attendance, have significant positive impacts on financial performance indicators for all the selected OECD economies except the country France. France's code of corporate governance has a significant negative impact on return on asset (ROA) and return on equity (ROE) due to differences in cultural and operational norms of the country. The audit board attendance has no significant impact on ROA. Moreover, all the attributes except board size (BSIZ) have significant positive impacts on the earnings per share (EPS) in Spain, The United Kingdom (UK) and Belgium. The values obtained from the moderation effect show that Corporate social responsibility is the key factor in motivating corporate governance practices which eventually improves corporate financial performance. However, this study advocated the implications, Investors and stakeholders should consider both corporate governance and CSR disclosures when making investment decisions. Companies that prioritize both governance and CSR tend to have better financial performance and are more likely to mitigate risks. Moreover, the policy makers can improve the code of corporate governance in order to attain sustainable development in the stock market.

The Nonlinearity of Working Capital and Cross-Sectional Stock Returns: Does Financial Constraints Matter?

This study is the first to examine the impacts of working capital (WC) and financial constraints on cross-sectional stock returns in Taiwan. The findings indicate a non-linear relationship between WC and stock returns. Moreover, the nonlinearity between WC and cross-sectional stock returns is robust after controlling for financial constraints, risk, and growth factors, before the Covid-19 pandemic. In contrast, there is no evidence of nonlinearity between WC and stock returns throughout the Covid-19 outbreak. In addition, the study shows that any deviations from the minimum WC level enhance the stock returns cross-sectionally. It is found that a positive Deviation effect exists in the Taiwan stock exchange before the Covid-19 pandemic by employing portfolio sorting methodologies. The return difference of the long buying highest Deviation and short selling lowest Deviation portfolios earn from 0.6% to 0.9% per month after controlling for financial constraints, risks, and growth factors. Interestingly, it is determined that the deviation effect becomes negative for small stocks during the Covid-19 pandemic, implying that investors prefer small stocks to maintain minimum working capital. The results support the trade-off theory and liquidity preference theory. Finally, the study provides insights into working capital management for managers, and investment strategies for investors during the pandemic.

Islamic Bank Merger and Economic Crisis: Event Study Analysis: Acces la Success

This event study examines the stock price reaction to the merger announcement of three major Islamic banks in Indonesia, namely BNIS, BRIS, and BSM to become Indonesia Islamic Bank (ticker code BRIS). This study analyzes whether there is an abnormal return around the merger announcement on 14 days window period. Using a daily stock price of BRIS, market index, and trading volume we calculated abnormal return and risk using market model Sharpe 's single index model. Analysis of the 14 days window period found that there is an insignificant abnormal return before and after the Islamic banking merger and Indonesia Stock Exchange has been categorized as weak-form efficiency. The results of statistical tests reveal that stock returns and trading volume react positively after the merger announcement and are significant at 5% alpha.

The Moderating Role of Good Corporate Governance: The Influence of Capital Structure, Profitability, Dividend Payment and Inflation on The Value of Mining Companies in Indonesia: Acces la Success

The objectives of this research include: (1) examining and analyzing the effect of capital structure, profitability, dividend payments and inflation on the value of mining companies;(2) examining and analyzing the moderating role of Good Corporate Governance (GCG) on the effect of capital structure, profitability, dividend payment and inflation on the value of mining companies listed on the IDX. The population of this study is all mining sector companies listed on the IDX for the period 2014-2020. The purposive sampling method is used as the sampling technique. The total population is 49 companies and the number of samples that meet the criteria are 44 companies. The research period is 7 years, so the total number of observations is 308 data (pooled data). The Moderated Regression Analysis (MRA) is used as the analysis method. The result is as follow: (1) capital structure has a negative significant effect on firm value;(2) profitability has a positive significant effect on firm value;(3) dividend payment has no significant effect on firm value;(4) inflation has a negative significant effect on firm value;(5) GCG has a moderating effect on the influence of capital structure, profitability and inflation on firm value, with the type of Quasi Moderating, whereas on the influence of dividend payments on firm value, it was the type of Pure Moderating.

The Relationship Between Financial Indicators and Financial Intermediaries' Stock Price Volatility Listed on the BM&FBOVESPA Index in the Crisis Period of 2008 and 2020 (Covid-19): GCG

The study goal was to verify the relationship among financial indicators and intermediaries' volatility stock price listed on the BM&FBovespa Index in the crisis period from 2008 and 2020 (COVID-19). The methods used for analysis were Spearman's correlation, multiple linear regression, and Test T. The analyzed period refers to the year 2008, the second semester of 2019 and the first semester of 2020, which include the periods before and during the crises of 2008 and 2020. The results found show that only the indicator of the assets total turnover rate has a significant relationship with the stock price volatility.Alternate :O estudo tem como objetivo verificar a relação entre os indicadores com a volatilidade das ações das intermediadoras financeiras listadas no Índice BM&FBovespa no período das crises de 2008 e 2020 (COVID-19). Os métodos utilizados para análise foram de correlação de Spearman, regressão linear múltipla e Teste T. O período analisado refere-se ao ano de 2008, segundo semestre de 2019 e primeiro semestre de 2020, onde englobam os períodos pré e durante as crises de 2008 e 2020. Os resultados encontrados apontam que apenas o indicador taxa total de rotatividade dos ativos possui relação significativa com a volatilidade do preço das ações.Alternate :El estudio tiene como objetivo verificar la relación entre los indicadores y la volatilidad de las acciones de los intermediarios financieros listados en el Índice BM&FBovespa en el período de las crisis de 2008 y 2020 (COVID-19). Los métodos utilizados para el análisis fueron la correlación de Spearman, la regresión lineal múltiple y la prueba T. El período analizado se refiere al año 2008, la segunda mitad de 2019 y la primera mitad de 2020, que incluyen los períodos antes y durante las crisis de 2008 y 2020. Los resultados encontrados indican que solo el indicador de tasa de rotación de activos totales tiene una relación significativa con la volatilidad del precio de las acciones.

The complex evolution of information quality improvement in competitive market

Information is important market resource. High-quality information is beneficial to increase enterprise's reputation and reduce consumer's verification cost. This paper constructs a two-layer dynamic model, in which enterprises simultaneously conduct price and information game. The goal of profit maximization integrates two types of games into one system. The complex evolution of the two-layer system are studied by equilibrium analysis, stability analysis, bifurcation diagram, entropy and Lyapunov exponent. It is found that improving the information quality through regulations will increase involution and reduce stability of the market. Then, the block chain technology is introduced into the model for improving information quality of the market. It is found that increasing enterprises' willingness to adopt block chain can improve the information quality quickly and effectively, and that is verified by entropy value. Therefore, the application and promotion of new technologies are more effective than exogenous regulations for improving information quality in market.

COVID-19 and earnings management: a comparison between Chinese family and non-family enterprises

PurposeThe main objective of this study is to examine the impact of the COVID-19 pandemic on earnings management practices in China using a sample of family and non-family enterprises. More specifically, this study aims to examine whether the COVID-19 pandemic causes variation in Chinese listed family and non-family enterprises' operations, as reflected in the level of real earnings management (REM).Design/methodology/approachThis study uses three standardised REM indicators, namely, the abnormal level of cash flows from operations, the abnormal level of production costs and the abnormal level of discretionary expenses. Ordinary least squares (OLS) regressions are applied to compare the earnings management of Chinese family and non-family enterprises during the pre-pandemic period (2017–2019) and the pandemic period (2020).Findings The authors find that Chinese listed non-family enterprises tend to participate in more REM activities than family enterprises before the COVID-19 outbreak. However, the opposite is true during the pandemic. The authors also find that COVID-19 has increased the involvement of family and non-family enterprises in REM activities.Originality/valueThe results of previous studies based on REM using Chinese listed firms may not be applicable under the new social background of COVID-19. As the period after the COVID-19 outbreak is relatively recent, Chinese researchers have yet to study it comprehensively. The present study is amongst the first empirical attempts investigating the effect of a pandemic financial reporting by investigating whether and how the burst of the COVID-19 crisis affected financial reporting through the earnings management practices of listed Chinese family and non-family enterprises. Such information is crucial because it can provide analysis for all stakeholders to make better decisions.

The impact of security oversight on air cargo price and demand

This paper examines the effect of security oversight on air cargo price and demand. We exploit variations in security oversight instituted by the International Civil Aviation Organization (ICAO). We estimate a simultaneous equation model using proprietary operations data from a major airline in South Korea over the period 2009–2013. This study explores the shipping-charge behavior of a service provider through a modeling approach that considers air cargo security. Our findings show that security oversight increases air cargo demand, controlling for the effect of price. Improving security measures increases the air cargo price, but the magnitude of this increase is small. Our results should help policymakers gauge the benefit of improved security and help airlines design an effective model to determine future air cargo shipping charges under high uncertainty to mitigate short- and long-term financial risks.

Profit-Sharing Contract of the Fresh Agricultural Products Supply Chain under Community Group Purchase Mode Considering Freshness Preservation Efforts

This article constructed a four-level fresh agricultural product (FAP) supply chain with a two-stage pricing strategy under a "community group purchase (CGP) platform + direct procurement from the FAP supplier” sales model. We investigate the influence of the CGP agency's participation in the control strategy of FAP freshness preservation efforts on the profits of supply chain stakeholders. This article discusses the effects of the FAP supplier profit-sharing ratio, the CGP agency profit-sharing ratio, and consumers' sensitivity to FAP freshness on the supply chain stakeholders' freshness preservation efforts. Moreover, based on the fairness preference theory, this article designed a profit-sharing contract that involves the Nash bargaining game between the FAP supplier and the CGP agency as the supply chain coordination mechanism. Modeling results revealed that: (1) The CGP agency's freshness preservation efforts increased total supply chain profits. (2) The FAP supplier profit-sharing ratio, CGP agency profit-sharing ratio, and consumers' sensitivity to FAP freshness have a positive correlation to the profits of the FAP supply chain and promote the coordination of the supply chain. (3) Considering fairness preferences, with the increase in FAP suppliers' business negotiating ability, their freshness preservation efforts and fairness utility both increased gradually, while the fairness utility of the CGP agency gradually decreased.

Několik statisticko-analytických poznámek k charakteru krize 2020-2021

The present work is based on a hypothesis that the Czech economy was showing signs of economic deceleration and a potential slump into deeper growth problems way before the outbreak of the COVID-19 pandemic, i.e., at least in the year 2019. However, the present text does not intend to thoroughly confirm this hypothesis because in order to do so, a longer timeline of key economic indicators needs to be analysed. What it does present is at least a partial argumentation supporting the abovementioned hypothesis and some basic calculations. It proposes two ways towards its confirmation. The first one is a comparative analysis of individual - especially European - economies' response to subsiding external influences, i.e., to the weakening of the effects of the pandemic on the economy. The second way is at least a partial analysis of key macroeconomic indicators from the time before and during the pandemic, with an emphasis on detectable divergences in the development. The conclusion of our research is the finding that as early as in 2019, the Czech economy was showing signs of imminent deceleration of growth, which would probably have turned into stagnation and possibly a certain decrease in economic activity. The conclusions indicate that the reason behind such development was a massive but in fact little effective investment activity in the Czech economic environment, which is historically related to the structure of the economy and to the position of the Czech industrial sector in supplier relationships. Two related phenomena arise from that: firstly, a relatively low labour productivity, with producers domiciled in the Czech Republic reaching quite a low volume of value added, and secondly a massive capital outflow in the form of profits paid to parent companies abroad. The final part of the paper outlines some potentially effective steps which might lead - under favourable circumstances - to restructuring processes in the Czech economy. Due to the date of finishing the research, the paper does not include the consequences of the War in Ukraine.

Does the Size of the Business Still Matter, or Is Profitability under New Management, by Order of the COVID-19?

Businesses should come up with a strategy, plans, and goals so that their total assets can make a profit during the transformation process. Utilizing various features of a property can generate this income. This comparison provides evidence of profitability. During the global economic downturn, a number of businesses encountered issues that caused their payment situations and profitability to deteriorate. The goal of this article is to ascertain whether particular profitability indicators also revealed the pandemic-related global crisis, particularly in the Visegrad Group countries. This analysis was conducted based on categories of business size. Specifically, 8671 enterprises were analyzed. The evaluation of indicators revealed whether there was a significant change in a negative direction, a significant change in a positive direction, or no significant change. It was possible to make a clear diagram of the companies that took part in the study and to figure out the median values in order to compare the results of the chosen profitability indicators. Correspondence analysis was conducted so that conclusions could be more accurate. According to the findings of this study, indicators of ROA, ROE, and ROS did not change significantly across enterprise size categories in the years preceding, during, and after the pandemic. Since the government regulations of the V4 countries had a significant impact on these businesses, the change was most obvious in the case of small businesses within the ROS indicator. The added value of the article is derived from its analysis of selected profitability indicators in the largest group of Central European nations and its relevance.

Annual Report of the Secretary-Treasurer

The article presents the annual report of the Southern Historical Association secretary-treasurer about the workings of the association amid the Covid-19 pandemic. Topics include the return of the association to in-person meeting in November 2022 after holding virtual meetings in 2020 and 2021 due to Covid, several innovations showcased at the 2022 meeting such as a mentoring match-up program, the association's support for history education, and its profit and loss from January-December 2022.

Impact of Financial Technology on Improvement of Banks' Financial Performance

This study investigates the main financial technologies adopted by banks to improve their financial performance. The study population consists of commercial banks listed on the Amman Stock Exchange and Abu Dhabi Securities Exchange, and includes financial information and data from 2012 to 2020. A total of 115 questionnaires, consisting of five questionnaires for each bank, were distributed to the study population in Jordan and the United Arab Emirates. The dependent variable is financial performance, while the independent variable is financial technology (FinTech). Multiple linear regression analysis was conducted to test the hypotheses. The results showed that FinTech has a positive effect on both total deposit and net profits. This study recommends that banks be encouraged to adopt inclusive strategies to attain sustainable development.

The role of traditional knowledge-based dynamic capabilities to improve the sustainable performance of weaving craft in Indonesia

PurposeIndonesian woven craft small- and medium-sized enterprises (SMEs) have encountered several difficulties in sustaining their success in the digital era. The performance of the business is contingent upon its ability to gain competitive advantage through traditional knowledge capabilities. The purpose of this research is to study the role of traditional knowledge management processes towards competitive advantage and sustainable performance for woven craft SMEs.Design/methodology/approachThis research used a quantitative approach with a survey strategy. Confirmatory research was conducted to test five hypotheses to determine the causal relationship of four variables, namely, traditional knowledge management, dynamic capabilities, competitive advantage and sustainable performance. This study used a purposive sampling strategy and gathered data from 385 respondents. The sample was selected based on predetermined criteria, including operation for more than five years and entrepreneurial activity using traditional knowledge as a resource to manage product innovation. The analytical technique used was structural equation modelling with the support of the AMOS programme.FindingsThe findings indicated that traditional knowledge management processes directly affect dynamic capabilities and sustainable performance. This study also found traditional knowledge management processes play a significant role in enhancing competitive advantage mediated by dynamic capabilities. However, traditional knowledge management processes have no significant effect on competitive advantage. Hence, there is a significant effect contributed by the relationship between traditional knowledge management processes and sustainable performance. Therefore, in the context of craft woven SMEs, the higher the traditional knowledge-based capabilities, the higher their sustainable performance.Originality/valueThe novelty shows a direct relationship between traditional knowledge management processes and sustainable performance. This study also found traditional knowledge management processes meditated by dynamic capabilities have a relationship with competitive advantage. Traditional knowledge management processes will trigger an increase in dynamic capability which is a source of business development;those conditions will increase sustainable performance. Traditional knowledge-based capability is an antecedent of sustainable performance. The benefits of this research can be used as scientific literature regarding the link between traditional knowledge management processes, competitive advantage and sustainable performance. The results of this study can also be used as a basis for empowering traditional woven craft SMEs in Indonesia.

Access to Medicine in Developing Countries: Elevating State Obligations Over Corporate Profit

This paper investigates the divergence between the objectives of the state in ensuring citizens' right to health and the profit-maximization objective of pharmaceutical corporations in relation to, access to, and supply of medicine. This divergence is pertinent given both the rising cost of medicines and unmet needs, particularly in developing countries. This paper analyses the correlation between pharmaceutical corporations' profit drive and the state's welfare obligation. There is a need to bridge the gap between business and human rights, which can be achieved by combining the concepts of "business ethical responsibility" and corporations' contributions to "common good" with the jurisprudence on the right to health. This is imperative in view of the impact of the business of pharmaceutical corporations on vulnerable populations, particularly in, but not limited to, developing countries.

The Impact of ICT on the Profitability of Indian Banks: The Moderating Role of NPA

The role of Information and Communications Technology (ICT) cannot be ignored in today's era of working. Its effects are studied in several sectors by various researchers. This study covers the impact of ICT on the profitability of banks. Thirty-three banks are operating in India. A sample period of 10 years (2010 to 2019) was studied. The study also provides insight into how ICT helps the banks' profitability during and post-COVID-19. A panel data analysis is performed to estimate the results. This study found that ICT adversely impacts banks' profitability (NIM) in India in a linear association. However, the quadratic association indicates a positive U-curved relationship between ICT and profitability. In addition, the Net of Non-Performing Assets significantly but negatively impacts the connectivity of ICT and profitability. The findings imply that banks should invest in ICT to maximize the long run. The findings have no significant implication on all stakeholders, including policymakers, shareholders, and managers, to consider implementing ICT tools as an essential factor in enhancing a bank's profitability in the long run. In addition, the level of otherwise lowered investments in ICT cannot be a fruitful step. The current study augments the existing literature on banking by providing novel evidence on the association of ICT with profitability under the influence of NPA. This study argues for the application of ICT in banks in order to increase their profitability. ICT helps the bank maintain transparency, accountability, and even the reach of financial services increases. This situation again leads to the enhancement of the country's economy.