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Item Three essays on the impact of regulatory changes on firms’ operation : a dissertation presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Finance, Massey Business School, School of Finance and Economics(Massey University, 2023-12-04) Nguyen, Van PhucThis dissertation offers an in-depth exploration of how major and cross-country laws, such as anti-collusion, enhanced by a leniency program and the recently emerging free trade agreement, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), influence firms' operational efficiencies and strategies across various contexts. Employing rigorous methodologies, including advanced Difference-in-Differences (DiD) estimators and Propensity Score Matching (PSM-DiD), this research spans multiple countries and time periods to furnish a detailed understanding of regulatory impacts. The first essay investigates the implications of leniency laws on firms' operational efficiency across 64 countries from 1990–2020. Findings reveal that in response to leniency laws, firms adopt a dual strategy: they initially extend credit terms, which pose short-term risks to asset turnover, while also optimizing fixed asset utilization for long-term sustainable growth. The study uncovers considerable heterogeneity in the laws' impact, notably more pronounced in developing economies and within specific cultural frameworks. The study identifies that leniency laws, in particular, affect larger and more profitable firms by leading them to extend more favorable payment terms. Additionally, the laws have a more pronounced impact on developing economies and cultures characterized by specific traits such as low power distance, collectivism, high uncertainty avoidance, and long-term orientation, as outlined by Hofstede (2011). The second essay examines the influence of the CPTPP on Vietnamese firms from 2017–2021, a transformative era where Vietnam pivoted from an agrarian economy to a manufacturing powerhouse where operational efficiency plays a key role (Laiprakobsup & Chorkaew, 2018). This pivotal change, spurred by the “China Plus One” strategy, not only cements Vietnam’s status as a key player in global manufacturing but also warrants an in-depth analysis as to how its competitive labor and production costs, enhanced by a strategic location, contribute to its increasing economic allure. Our study reveals an initial dip in operational efficiency during the first year of the CPTPP, indicating a strategic realignment phase with increased fixed asset investments and trade credit extensions. However, subsequent years saw a substantial recovery in operational efficiency, marking the successful adaptation of the new trade conditions. The CPTPP's effects were particularly pronounced for high profitability, large-sized firms, those listed on HOSE, and, since 2020, those resilient to the impact of COVID-19. Financially constrained firms seek to use the CPTPP for revenue gains and stress relief but remain cautious about major investments due to debt management concerns. Our findings underscore the transformative role of major trade agreements, and the strategic shifts firms employ to harness these opportunities. The third essay explores the influence of the CPTPP on Research and Development (R&D) investment strategies within Japanese firms. The CPTPP's Chapter 18, with its comprehensive intellectual property protections, presents an opportunity for Japan to rejuvenate its innovation sector, especially as the nation seeks to reclaim its status as a technological leader amid a historical decline in patent registrations. The study presents a detailed impact of the CPTPP on R&D activities within Japanese firms. While enhanced intellectual property protections boost R&D investment, this is counterbalanced by opportunities for market expansion. Manufacturing firms aligned with Japan's cultural long-term orientation consistently increase R&D activities, while service-oriented and technology-intensive firms initially scale down, but eventually recover. Financially constrained firms and those with high sales growth exhibit similar, but distinct patterns in R&D investment. All these findings are framed within the Pecking Order Theory and Japan's cultural norms. Collectively, navigating through the intricacies of international industries and cultures, these essays shed light on the strategic adaptations of firms across the globe. They provide a valuable addition to the scholarly conversation and offer practical guidance for decision-makers worldwide.Item Essays on the dynamics of liquidity networks : a thesis presented in fulfilment of the requirement for the degree of Doctor of Philosophy in Finance at Massey University, Albany, New Zealand(Massey University, 2023) Farzami, ForooghThis dissertation presents three essays on liquidity interrelationships between firms in the Standard and Poor's 500 (S&P500) index using network theory. Liquidity is the ease of trading securities in the financial market. It varies over time and differs significantly across firms. The principal challenge for market participants is the variability and uncertainty in liquidity. In simple terms, market liquidity risk relates to the inability to trade at a fair price with immediacy. Many studies investigate liquidity co-movement of assets and the associated risk. However, almost no empirical work has been devoted to investigating the possibility of liquidity interrelationship through a liquidity network. In the first essay, I investigate if a liquidity network among 1,174 firms included in the S&P500 exists using 30 years of data, employing a lead-lag liquidity network method to analyse liquidity interrelationships beyond contemporaneous spillover effects. I find an intertemporal liquidity network where 84% of the firms exhibit statistically significant connectivity in at least one direction during the sample period. The degree and manner of liquidity communication vary across the firms and are dynamic over time. Furthermore, I show that individual firms' characteristics, such as the level and change in liquidity, firm size, and return volatility, can explain their network structure. The outcome emphasizes the fragility of the liquidity system through the firms' connectivity which can be a new factor to consider when evaluating firms' expected rate of return. The second essay explores the relationship between the firm-level liquidity shock transmission through the liquidity network and the role that firm-size plays in the transmission process. I find that the transmission of the liquidity shock depends on the firm size. The greater intensity shocks influence the transmission more through larger firms than small firms. I also find that with one unit increase in the size differences between firms, the odds of firms not being connected in the network increases by 2.5%, suggesting similar-size firms tend to have more connectivity. Furthermore, looking at size-based portfolios, I find that although all the portfolios transmit shock significantly to one another, their explanatory power varies. Most portfolios tend to send out more shocks to the next largest quantiles. The outcome overall suggests that diversification against liquidity shock transmission is possible by including different firm sizes. Finally, I investigate the impact of the COVID-19 pandemic on liquidity interlinkages of U.S. industry groups. I document that sectors differ in their liquidity interactions during the pre-COVID period, with some sectors more interlinked than others. I also document that the crisis induced by COVID-19 had a significant effect on the liquidity network, with virtually all sectors becoming more interconnected relative to the pre-COVID period. The effect varies across industries, with the real estate sector being the most affected and telecommunication services the least. Overall, due to higher interconnectedness, liquidity risk became harder to diversify.Item Exploring the roles of women in indigenous businesses based on customary land : case studies from Papua New Guinea : a thesis presented in fulfilment of the requirement for the degree of Doctor of Philosophy in Development Studies at Massey University, New Zealand(Massey University, 2020) Steven, HennahThe purpose of this research is to explore how indigenous enterprises based on customary land in Papua New Guinea (PNG) work to empower women. This research is part of the Royal Society of New Zealand Marsden project “The land has eyes and teeth”: customary landowners’ entanglements with economic systems in the Pacific that draws upon the notion of land as ‘assemblage’ (Li, 2014). The study brought in a gendered dimension to the project to understand how economic engagements on customary land involve and benefit women. Three examples of small-medium indigenous enterprises from PNG were selected as case studies. Utilising the Pacific Vanua and Tali magimagi influenced research framework, the involvement of women in these cases was examined to understand how they contributed to and benefited from small business engagements on customary land. From executing a mixture of tok stori/stori sessions (storytelling, conversations), semi-structured interviews and participatory observation, the study revealed the significance of indigenous social values and practices that were of critical support to business sustainability on customary land. Women played an important role as the ‘social glue’ within the businesses, maintaining the local value of wanbel to keep social cohesion and harmony within the businesses, communities and, with associated people. This was seen through their work on the maintenance of wellbeing for workers, relatives and communities; meeting socio-cultural obligations and responsibilities, and allowing spiritual values and beliefs to influence their actions and decisions. The desire to maintain these social values influenced the way they behaved. They also played direct business roles as co-managers, financial managers, workers and producers that helped to support business viability and retain customary land for the benefit of the family, clan and community. Further, women benefited from these businesses in various ways including gaining recognition and status in their households and communities. The study shows that customary land ownership is not a barrier to economic development, as widely held perceptions would suggest, rather it is an asset that can facilitate different forms of local development for people and communities in PNG and in the wider Pacific. There is a need to understand economic-centred intentions alongside the social-cultural interests of women to drive context-specific development. A culturally appropriate gender-sensitive framework is proposed in this thesis as an alternative development framework that can guide the work of government policymakers, development agencies and donors to formulate inclusive development programmes that also support women’s other interests in PNG and the Pacific.Item An examination of CSR decoupling in Pakistan : a research journey through tight and loosely coupled environments : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy, School of Management, Massey University, Manawatu, New Zealand(Massey University, 2020) Khan, MajidThe literature on CSR has been debated among organisational scholars not only for its benefit to society and the environment but also its positive influence on business and organisations. Research suggests that strong government, markets and civil society are also necessary conditions for businesses to behave in a socially responsible way. However, due to its focus on developed economies limited contextual knowledge has emerged, especially that from developing countries. Within this latter context there is a lack of understanding of how businesses use reporting to create an impression of social responsibility while masking their actual performance, suspected to be the result of a weak institutional environment. By drawing on (neo)-institutional theory this research addresses this theoretical gap, demonstrating that CSR policies and practices are shaped by their embeddedness in the prevailing institutional environment. More specifically, this research explores questions related to CSR reporting, practice, and the decoupling between CSR rhetoric and actual performance in Pakistan. The research design comprised a multi-methodological approach using data quadrangulation. First, quantitative content analysis of 29 listed companies was conducted, drawing longitudinal data from publicly listed annual reports (2001, 2006, 2011 & 2017 – five-yearly intervals) to understand the extent of CSR reporting in Pakistan. Second, in-depth semi-structured interviews were conducted with 23 respondents comprising of CSR/sustainability managers, national regulators, and members of CSR promoting institutions in the country. Third, the originality of reports was examined using TurnitinTM and TinEyeTM. Finally, a discourse analysis of text and related images in reports was conducted to describe, interpret and explain contextualised meanings of language used. The results show that CSR, as perceived by many stakeholders actually has limited understanding and currently few benefits in Pakistan. The drivers identified for CSR policies and practices were found to be significantly different from that studied in the developed world. Additionally, unique instances of widespread decoupling are highlighted in the form of the lack of originality in texts, and the use of digitally manipulated images in CSR reports, thereby, suggesting that such behaviour is deliberate. The research makes important theoretical and methodological contributions to the nexus of business and society in a developing country, especially one suffering from a weak institutional environment.Item 'E da dravudravua e na dela ni noda vutuni-i-yau' : customary land and economic development : case studies from Fiji : a thesis presented in fulfilment of the requirement of the degree of Doctor in Philosophy in Development Studies at Massey University, Palmerston North, Aotearoa(Massey University, 2020) Vunibola, SuliasiThe purpose of this research is to determine how indigenous Fijian communities have been able to establish models of economic undertaking which allow successful business development while retaining control over their customary land and supporting community practices and values. External critics frequently emphasise that customary practices around land restrict economic development and undermine investments in the Pacific. There is also assertion that within the Pacific islands, culture and customary measures are mostly viewed as impediments of hopeful development. This research seeks to switch-over these claims by examining how customary land and measures facilitate successful business forms in Fiji. Along with the overarching qualitative methodology - a novel combination of the Vanua Research Framework, Tali Magimagi Research Framework, and the Bula Vakavanua Research Framework - a critical appreciative enquiry approach was used. This led to the development of the Uvi (yam - dioscorea alata) Framework which brings together the drauna (leaves) representing the capturing of knowledge, vavakada (stake) indicating the support mechanisms for indigenous entrepreneurship on customary land, uvi (yam tuber) signifying the indicators for sustainable development of indigenous business on customary land, and taking into consideration the external factors and community where the indigenous business is located. Case studies on three successful indigenous Fijian businesses based on customary land were conducted in two geographical locations in Fiji, and methods included talanoa, active participant observation, and semi-structured interviews. This study found that customary tenure and cultural values can support socially embedded economic development activities in the Pacific. It also reinstates the inherent value of customary land as an intergenerational resource aiding self-determined and inclusive development, including economic activities that provide holistic returns to communities as in socio-cultural contributions and community development initiatives. The businesses were able to be sustainable by devising mechanisms that balance daily business and community contributions. The study concludes that locally-driven development on customary land could be a model for alternative forms of economic development, thus, helping to reshape understanding of economies in Fiji and the wider Pacific.Item Determinants and consequence of cost stickiness : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Accountancy at Massey University, Auckland, New Zealand(Massey University, 2020) Costa, Mabel DThis research investigates the determinants and consequence of cost stickiness using data of publicly listed U.S. firms. Understanding the determinants of cost stickiness and its implications is extremely crucial, since it affects firms’ profitability, consequently, shareholders’ wealth. Moreover, cost management has even wider repercussions for both debt and equity investors in the areas of risk assessment and the trust of customers, employees, and other stakeholders in the community. Therefore, this study is organised into three different research essays: (i) financial constraint and cost stickiness; (ii) trade credit and cost stickiness; and (iii) cost stickiness and firm value. Essay One investigates the association between financial constraints and cost stickiness. Using a large U.S. sample from 1976 to 2016, I find that financially constrained firms exhibit less cost stickiness. I document that such low-cost stickiness supports both “good” and “bad” arguments depending on the managerial motivation, namely: earnings management incentives, agency problem and value-creating potential of SG&A costs. I also investigate whether the association between financial constraints and cost stickiness varies across the economic cycle. I find that low cost stickiness is observed during both economic expansion and economic contraction periods, although it is more pronounced during contraction. As resources drive the cost of a business, and financial constraints affect resource availability, studying cost behaviour of constrained firms makes a valuable contribution to the existing cost stickiness literature. In Essay Two, I examine the relation between trade credit and cost stickiness and further investigate the moderating effects of agency problem, product market competition, and customer concentration. I find that firms using high levels of trade credit exhibit lower cost stickiness and this is prevalent in the high agency problem sub-sample. In addition, in a non-competitive market, where the agency problem arises owing to lack of competition, trade credit plays an external monitoring role by attenuating cost stickiness. However, high customer concentration curtails this monitoring ability of trade credit providers. Finally, in Essay Three, I investigate the association between cost stickiness and firm value, and examine whether the association, if any, is mediated by cost of equity capital and cash flows. Using a large sample of U.S. data, I find a robust negative relationship between cost stickiness and firm value. I then explore whether resource adjustment, managerial expectations, and agency theories of cost stickiness affect the negative relation, and find some support for the agency view. Furthermore, I find evidence that the detrimental impact of cost stickiness on firm value is mediated partially through the cost of equity and cash flow channels. I enrich the cost management literature by integrating cost asymmetry with corporate finance.Item Determinants of radical product innovation in the New Zealand food and beverage industry : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Product Development at Massey University, Manawatu, New Zealand(Massey University, 2019) Pitrchart, JulawitThis thesis presents an empirical study that investigates the radical product innovation phenomenon in the New Zealand food and beverage industry. Its major objectives are to posit and test determinants of radical product innovation and their relationship in explaining product innovativeness, using the New Zealand food and beverage industry as the study context. The New Zealand food and beverage industry was chosen because of its long history of successful radical product innovation and the importance of that industry to the New Zealand economy. A conceptual model is proposed, based on the literature and content-validated through field interviews with five New Zealand food and beverage companies known to be innovative. The conceptual model is then theoretically-tested using quantitative data collected from 137 food and beverage companies in New Zealand. The research hypotheses were formulated to validate five posited determinants of radical product innovation, including their interrelationships in explaining and predicting product innovativeness. In addition, the study tests the effect of company characteristics on product innovativeness and projects the salient features of a typical highly innovative New Zealand food and beverage company. The study confirmed the five posited determinants—top management innovation capability (TMIC), internal innovation capability (IIC), external networking capability (ENC), innovative organisational culture capability (IOCC), and innovative product development capability (IPDC)—are causally related to product innovativeness (PI). Of the 12 hypotheses that constitute the theory, four were not supported by data, in that the direct effects of TMIC on IPDC, IIC on IPDC, and ENC on IPDC were found to be non-significant (p > 0.05); also, the direct effect of IIC on ENC was found to be negative. The reasons for these discrepancies are discussed and the results are interpreted from a practical perspective. In regard to the effect of company characteristics on PI, younger companies as well as larger companies were found to be more innovative than their older and smaller counterparts. The effect of foreign ownership was not supported by data, probably due to a small sample size of overseas owned companies. The study also shows that a highly innovative New Zealand food and beverage company typically scores highly in the scales ii of the five posited determinants. Young (founded since 2011), and medium to large in size (50+ full-time employees) firms also tend to outperform their counterparts in PI.Item Achieving holistic sustainability in Chinese and New Zealand business partnerships : an integrative approach : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Management at Massey University, Albany, Auckland, New Zealand(Massey University, 2020) Chen, Michelle SitongTensions in sustainability are a relatively new area and largely unexplored empirically between firms in collaborative business partnerships, particularly drawing from paradox theory and organisational ambidexterity theory. If these tensions cannot be understood and addressed adequately, it will not only have negative impacts on individuals’ interests, but also on the development of organisations and ultimately the prosperity of the society. Hence, this study examines empirically how tensions in addressing divergent sustainability issues arise, and are perceived and managed between Chinese and New Zealand firms in business partnerships. Guided by an interpretivist philosophy, this research adopts a qualitative and abductive approach as the preferred research method. In doing so, 33 in-depth individual interviews alongside one informal group discussion were carried out at 16 relatively large Chinese and NZ firms known for their commitment to sustainability that are in business partnerships. This thesis includes three empirical chapters. The first findings chapter identifies tensions in sustainability between Chinese and New Zealand firms and discovers the reasons for them. The findings reveal that the Chinese and New Zealand firms in business partnership are faced with complex and multiple sustainability tensions which are thus more difficult and challenging for them to address simultaneously. This chapter also shows that the tensions are caused by an integration of multiple reasons from individual, organisational and national levels. The second findings chapter explores how managers make sense of these tensions. The results delineate four kinds of managerial logic – paradoxical, contradictory, business and defensive – which are applied to make sense of different kinds of tensions. In contrast to prior studies, the findings reveal that paradoxical logic is the most common logic adopted by the managers at Chinese and NZ companies in business partnerships; as the other types – contradictory, business and defensive logic – are not commonly used. The third findings chapter investigates the strategies that Chinese and NZ firms adopted to manage the tensions in their business partnerships. The findings show two main approaches: trade-off and integrative. This research highlights that working through sustainability tensions using integrative approaches can bring proactive outcomes which will help these companies to advance their sustainability practice through inter-organisational learning, to enhance their mutual understanding and to strengthen their business partnerships over time, thus achieving holistic sustainability. This research contributes to scholarly understanding of tensions in sustainability between firms in collaborative business partnerships in relation to the nature of the tensions, reasons for the tensions, managerial sensemaking of tensions and the strategies for managing the tensions. This also adds value to paradox theory and organisational ambidexterity theory including structural and contextual ambidexterity, and their theoretical and practical implications for tensions in sustainability research.Item Tsunami preparedness communication : understanding the business audience : a research report completed in partial fulfilment of the Master of Communication degree at Massey University, Wellington(Massey University, 2018) Sheridan, AdriennePrevious research conducted by GNS Science pre and post the 2016 Kaikōura Quake identified that the New Zealand public does not sufficiently understand the risks posed by tsunami hazards, and in particular there is limited awareness about the different responses required for local, regional, and distant-source tsunami events. This research was undertaken to delve deeper and generate new insights into the reasons behind that finding, specifically for one key audience: business leaders. This audience was primarily chosen because businesses play a key interdependent role in disaster response and community recovery. An audience-centred communication approach was chosen over the traditional mass communication approach most often applied in emergency management practice to date. A qualitative approach was selected because of its ability to provide complementary data to existing quantitative studies. Data were collected from twelve business-focussed community leaders, and business owners/senior managers in coastal Tauranga (Pāpāmoa) and Wellington (Rongotai), through a series of semi-structured interview conversations and email questionnaires. The data gathering instruments were designed to better understand the participants’: (1) tsunami knowledge and awareness; (2) tsunami risk perception; (3) existing tsunami preparedness; and (4) behavioural intent for future tsunami preparedness initiatives. Field observations and engagement with emergency management professionals provided greater depth of understanding and enhanced the contextual aspects of the research. The overall findings and themes emerging from this research suggest that: ● As indicated in the wider survey, there is a lack of tsunami awareness and preparedness among the business audience More specifically in the audience-centred context: ● There is confusion surrounding the roles and responsibilities of official emergency management organisations ● There is a need for improved organisational Health & Safety understanding and compliance concerning natural hazards in the business community ● Different stakeholders, even within the business audience, have different tsunami preparedness wants and needs The research also identified that: ● Some business leaders are willing to act as conduits for tsunami preparedness in their organisations and communities; viewing it as part of their identity and responsibility as a business leader. Specific suggestions for improved tsunami preparedness communication include: ● Ongoing stakeholder engagement and tsunami education with proactive ‘opinion leaders’ in the business community ● Adopting further targeted audience-centred approaches to improve the spread of preparedness messages through society ● A revision of existing official tsunami preparedness material and tsunami mapping to better meet the needs of end users, such as with customised co-developed material for business community needs in different regions ● Enhancing preparedness communication through the researcher’s ‘Five C’s Model’Item Quantification of the risk associated with the seasonal financing of agricultural production : a thesis presented in partial fulfilment of the requirements for the degree of Master of Agricultural Economics, Massey University(Massey University, 1992) Veltman, RonSince the abolition of government support policies for both agricultural and financial industries during the early 1980s, participants have had to take direct responsibility for the management of the risks involved in their business activity. As a prerequisite to the development of practical risk management strategies and techniques, quantification of risk is considered by this thesis. A quantification risk index that incorporates both the third and fourth moments of a distribution, thus adding to variance and monotonic transformations, the traditional surrogate risk measures, was developed and applied to sheep and beef farming. The risk index is developed using logit analysis, where risk is directly estimated. Logit analysis was used because it suited the thesis definition of risk. In this thesis, risk is defined as the probability of incurring loss or harm, where loss or harm is defined, in the context of sheep and beef farming, as zero or less than zero 'net cash returns'. Net cash returns are defined as all cash revenues generated by farm production less all farm and farmer expenditures. The index, or probability, is directly estimated given forecast average market prices, effective farm area, total farmer forecast expenditures and island location (North or south). The risk index has been developed for banker application to farm budgets submitted for the purposes of seasonal finance approval. The banker is warned by the index that the proposed farm plan has a high probability of ending in farm insolvency and an inability of the farmer to service all lending in the forthcoming year, solely from farm production. As a consequence of applying the measure to sheep and beef farming, the thesis found that in terms of risk to net cash returns, effective farm area in conjunction with total farmer expenditure is significantly ranked higher than fluctuating market product prices, and that risk trade-offs exist between farm area and expenditures. In a situation of small farm size with relatively high expenditures, optimistic product prices are insufficient to offset the high probability of incurring negative net cash returns.