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
| dc.confidential | Embargo : No | |
| dc.contributor.advisor | Wongchoti, Udomsak | |
| dc.contributor.author | Nguyen, Van Phuc | |
| dc.date.accessioned | 2024-04-03T01:56:55Z | |
| dc.date.available | 2024-04-03T01:56:55Z | |
| dc.date.issued | 2023-12-04 | |
| dc.description.abstract | This 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. | en |
| dc.identifier.uri | https://mro.massey.ac.nz/handle/10179/69428 | |
| dc.publisher | Massey University | en |
| dc.rights | The Author | en |
| dc.subject | Business enterprises | en |
| dc.subject | Law and legislation | en |
| dc.subject | Foreign trade regulation | en |
| dc.subject | 21st century | en |
| dc.subject | Vietnam | en |
| dc.subject | Japan | en |
| dc.subject | Commercial treaties | en |
| dc.subject | corporate finance | en |
| dc.subject | accounting | en |
| dc.subject.anzsrc | 350207 International finance | en |
| dc.title | 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 | en |
| thesis.degree.discipline | Corporate Finance | |
| thesis.degree.name | Doctor of Philosophy (Ph.D.) | |
| thesis.description.doctoral-citation-abridged | This dissertation explores the impact of international laws and trade agreements on business strategies and efficiency, specifically focusing on anti-collusion laws and the CPTPP's effects on firms in various countries. Employing advanced research methods, it reveals how businesses adapt their operational strategies in response to these legal and trade frameworks. Significant findings include the diverse reactions of firms to leniency laws and the specific adjustments in operational efficiency and R&D investments among Vietnamese and Japanese firms due to the CPTPP. This study offers new insights into the interaction between regulatory environments and corporate strategy, enriching academic discourse and providing practical guidance for businesses navigating global markets. | |
| thesis.description.doctoral-citation-long | This dissertation investigates the significant yet complex effects of cross-country laws, like anti-collusion with leniency programs, and global agreements such as the CPTPP, on firm strategies and operational efficiencies. Through a careful application of advanced methodologies across diverse international contexts, it uncovers how firms adjust operationally in response to legal and trade environments. Key findings include firms' strategic adaptations to leniency laws, affecting credit terms and asset utilization, with notable variations across different economies and cultural settings. Additionally, the impact of the CPTPP on Vietnamese and Japanese firms highlights strategic shifts in operational efficiency and R&D investments, respectively, showcasing the profound influence of global trade dynamics on firm behavior. This work contributes original insights into how regulatory frameworks and international agreements steer firm strategies, offering valuable perspectives for both academia and industry practitioners. | |
| thesis.description.name-pronounciation | Van Phuc |
Files
Original bundle
1 - 1 of 1
Loading...
- Name:
- NguyenPhDThesis.pdf
- Size:
- 2.97 MB
- Format:
- Adobe Portable Document Format
- Description: