This thesis consists of three essays examining the impact and consequences of the trading behaviour of a finely disaggregated category of investors in an electronic limit order book equity market, the Malta Stock Exchange (MSE). The three essays in market microstructure are closely related and examine how investor heterogeneity impacts the informational content of the limit order book, the informational content of individual trades, the price impact of investor trades, the aggressiveness of order submission strategies and the price discovery process within such a market. The first essay investigates the role of the financial intermediary in the price discovery process in a limit order market. We address this issue by analysing the trades of brokers within the Malta Stock Exchange by comparing the profitability of their individual trades and the impact of these trades on the price discovery process. The results of a Weighted Price Contribution methodology indicate that more active brokers that dominate the market in terms of volume and amount traded account for a significant portion of the price discovery process. We also find that the level of profitability of these brokers is directly proportional to the amount of volume traded and their relative share in the price discovery process. This appears to rule out the possibility of manipulative trades by these brokers in order to influence profitabilityThe second essay examines the price impact of the order flow emanating from finely disaggregated classes of investor with the aim of determining whether detectable differences exist in the extent to which orders emanating from particular groups of investors impact on the evolution of stock prices. On the aggregate stock level, results indicate price impact is inversely related to liquidity and as such the price impact of trades is of a higher magnitude and significance in stocks that are less liquid. Significantly, we find that stocks with higher liquidity and trading volume adjust quickly to price changes and the cumulative impact is realised earlier for these stocks. Similarly, for investor classes, our results show that the magnitude and significance of individual price impact increases as liquidity of the stocks declines, showing that as liquidity increases in the order book, the impact of information asymmetry begins to diminish. Institutional investors consistently have the highest significant impact on the evolution of prices across all the stocks. The final essay examines how investors structure their order submission choice in response to changes in the limit order book and market conditions (such as order depth, volatility, returns, and height of the limit order book). We identify 7 distinct investor classes who differ in their trading requirement and the information set available to them, and as such we expect that these investors will adopt different strategies to maximise their trades. The results show variability in the submission strategies adopted by investors as trade sides changes from buy to sell trades. It also indicate that investors have to balance between execution risk, the timely use of private information and the risk of being picked-off by other informed investors. In analysing the varied responses of these investors, we find that the order submission strategies adopted is most responsive to the risk of non-execution.

Observed trends in R&D expenditures reveal that the quantity and geographical distribution of such investments has changed over the years. Multinational Enterprises (MNEs) are increasingly spending money on R&D investments, as they must continuously upgrade their processes, products and services for establishing long-term success in today’s increasingly competitive landscape. In the mist of this, MNEs from developed countries are increasingly making R&D investments in emerging markets. India and China has in this regard be termed “hotspots” and do today house several R&D clusters. Given the important role of R&D and the changing patterns of such investments,  the following thesis aims to address four related research gaps: (1) the limited understanding of how MNEs make location choices, (2) the limited recognition of the inherent differences between research and development oriented activities and how such differences impact location choices, (3) the relatively limited attention scholars have given India, although this country is attracting significant amounts of R&D investments, and (4) the limited understanding of how emerging markets differ on a sub-national level. Based on these issues, the following research question has been formulated: What are the differences and similarities between R&D city clusters in India, that are significant from a western R&D investment perspective?   The purpose of this research question is three-fold. It firstly serves to encourage the integration of International Business (IB) and Economic Geography (EG) literature for better understanding location choices for economic activities. Secondly, it serves to encourage researchers to acknowledge and take into account the inherent difference between research and development activities. And thirdly, it serves to highlight that regional variation exist in emerging markets on a sub-national level. A sub purpose of this is to encourage more research on India.   For addressing the research question in matter, this thesis has studied Bangalore and Gurgaon which are two growing clusters in India. They have been studied through a qualitative research methodology where interviews have been combined with secondary sources for understanding their differences and similarities, and subsequently their strengths and weaknesses from a research and development perspective respectively. By looking at factor-, demand-, industry-, firm rivalry- , network- and policy conditions, it has been found that several areas of similarities and differences exist between the two clusters. In regards to similarities, both have similar levels of costs in terms of human capital; both cities receive support from the national government and both cities largely serve customers across the world, including India, and do thus both provide environments where there is to some degree a pressure from sophisticated demand conditions to be more innovative. In regards to differences, Bangalore has relatively more talented human capital available; Bangalore is dominated by the IT industry whereas Gurgaon is not clearly dominated by a single industry; Bangalore has more proactive support from its local policy makers; Bangalore has more local network linkages whilst Gurgaon has more global network linkages; and lastly, Gurgaon has more local rivalry. Based on these similarities and differences, it has been argued that Gurgaon is a relatively better location for both research and development oriented R&D investments from a telecom industry perspective.   Essentially strong enough evidence for the identified similarities and differences has not always been found due to limited data. They are nevertheless indications of regional variations that could serve as a basis for future research to have a closer look at. As indications of similarities and differences that affect the location choice of research and development activities differently has been found - using an approach integrating insights from IB and EG - this paper has served its purpose in terms of encouraging further research related to identified research gaps.

O objetivo desta dissertação é avaliar o impacto de mudanças de rating soberano sobre a taxa de câmbio de países emergentes. Embora a literatura relacionada já tenha estudado o impacto de mudanças de rating soberano sobre ações, títulos e até fluxo de capital, nada foi feito sobre taxas de câmbio. Todavia, taxas de câmbio devem responder de maneira interessante a mudanças de rating, pois além de serem ativos financeiros, as moedas desempenham a função de intermediar o investimento estrangeiro nos demais ativos domésticos. Empregamos a metodologia de estudo de evento acrescentando a ela uma modificação que nos permite controlar a análise por efeitos agregados. Utilizando uma base de dados diária de taxas de câmbio de 23 países emergentes encontramos, grosso modo, evidências de que downgrades estão associados a depreciações da moeda doméstica, ao passo que, upgrades não provocam nenhuma reação significativa na taxa de câmbio. Este resultado vai ao encontro da literatura que estuda o impacto de mudanças de rating em ações, títulos e fluxo de capitais. Além disso, dentre ainda outros resultados, encontramos evidências de que o mercado antecipa o evento relevante e que não há efeitos defasados. / The purpose of this dissertation is to examine the impact of sovereign rating changes on the exchange rate of emerging markets. Although the related literature has studied the impact of sovereign rating changes on stocks, bonds and even capital flows, nothing has been done on exchange rates. However, exchange rates should respond in an interesting way to rating changes because the currency is a financial asset and has a role in intermediating foreign investment in other domestic assets. We employ the event study methodology by adding to it an amendment that allows us to control the analysis by aggregate effects. Using a database of daily exchange rates of 23 developing countries, we found evidence that downgrades are associated with depreciations of the domestic currency, whereas, upgrades do not cause any significant reaction in the exchange rate. This result is consistent with the literature that studies the impact of rating changes on stocks, bonds and capital flows. Moreover, even among other results, we find evidence that the market anticipates the relevant event and there is no lagged effects on the market.

O objetivo desta tese é analisar a relação dos fatores do ambiente externo da empresa no país de origem, fatores organizacionais e fatores do empreendedor pelos quais algumas empresas de base tecnológica (EBTs) se internacionalizam de maneira acelerada desde sua fundação ou poucos anos após sua fundação. Cerca de 1000 EBTs foram aleatoriamente convidadas para responder o questionário. Ao final da coleta de dados a primeira base de dados gerada continha 214 respostas, das quais 85 foram obtidas de empresas com algum tipo de negócio no exterior, 39,7%. Destes, 54 questionários foram considerados válidos para esta pesquisa. Os resultados mostram que os fatores externos à empresa influenciam mais na internacionalização das EBTs em relação aos fatores internos. Assim, o habitat de localização, as parcerias, as políticas governamentais e a integração na cadeia de valor explicam de maneira significativa o processo de internacionalização das EBTs brasileiras. Porém, é a integração em cadeias produtivas globais o fator que melhor discrimina a internacionalização das EBTs born globals. Em relação aos fatores do empreendedor, as habilidades gerenciais internacionais do empreendedor também apareceram como importantes no processo acelerado de entrada no exterior das EBTs. Além disso, a tese apresenta uma taxonomia resultante de uma análise de clusters. Foram identificados três clusters: EBTs Born globals puxadas por cadeias globais, EBTs Born globals incentivadas por habitats de inovação e EBTs internacionalizadas não born globals. Portanto, esta pesquisa contribui para a discussão do processo de internacionalização acelerada das EBTs, contribuindo para suprir a lacuna da importância dos fatores externos, internos e do empreendedor no processo de internacionalização dessas empresas e apresentando uma taxonomia baseada em dados de born globals em mercados emergentes. / The objective of this thesis is to analyze the relation of factors external to the firm in the country of origin, organizational factors and entrepreneurial factors through which some technology-based firms (TBFs) internationalize in an accelerated manner since their foundation or a few years after their foundation. Approximately 1,000 TBFs were randomly invited to answer a questionnaire. At the end of data collection, the first database generated held 214 answers, of which 85 were obtained from firms which had some kind of business abroad (39.7%). Of those, 54 questionnaires were considered valid for this research. The results show that factors external to the firms influence more in the internationalization process of the TBFs in relation to internal factors. Therefore, location, partnerships, government policies and integration in the value chain significantly explain the internationalization process of Brazilian TBFs. However, integration in the value chain is the factor that best discriminates the internationalization of born global TBFs. In relation to entrepreneurial factors, international managing skills of the entrepreneur are also important to the accelerated internationalization process of the TBFs. Moreover, a taxonomy resulting of the analysis of clusters is presented in the thesis. Three clusters were identified: born-global TBFs generated by global chains, born-global TBFs motivated by innovation habitats and internationalized non-born global TBFs. Therefore, this paper contributes to the discussion of the accelerated internationalization process of TBFs, filling the gap regarding the importance of external, internal and entrepreneurial factors in the internationalization process of these firms and presenting a taxonomy based on data from born globals in emerging markets.

This thesis focuses on exchange rates dynamics in Mexico, Turkey and South Korea. We examine the capital flow development in mentioned countries and currency dynamics of the Mexican Peso, Turkish Lira and Korean Won. The main goal of the paper is to evaluate the performance of these currencies in risk-on and risk-off episodes on a sample period from 1997 until 2016. We use analysis and comparison as a methodology for this paper, emphasizing on the relationship and causality between capital flow and exchange rates. We shall reveal that the examined currencies depreciate in risk-off periods and only the Korean Won appreciates in risk-on periods.

This dissertation investigates the dynamics of mean and volatility spillovers from the U.S. and three large (regional) Asia-Pacific stock markets to ten small (local) ones from June 2008 to May 2013. After a brief introduction to the main purposes and contributions of my research in Chapter 1, I examine the impact of lagged American and regional returns on the local markets in Chapter 2. By building up a univariate autoregressive model and treating lagged U.S. and regional returns as exogenous variables, I find that the local markets have statistically significant exposure to lagged returns of their own and the U.S. market only. The empirical results suggest that lagged American returns have exerted considerable mean spillover impact upon most of the local markets, whereas the large Asia-Pacific markets involved in this study have few such impacts. I study the linkage between the U.S. market and each of the regional markets in Chapter 3 by employing two specifications of the bivariate GARCH process—the BEKK and general dynamic covariance (DC) models—to capture common features of equity return data. Based on the results of carefully constructed diagnostic tests, the BEKK model is demonstrated to be more appropriate for the U.S.–China and U.S.–Japan cases, and the dynamic covariance model for the U.S.–Australia case. In Chapter 4, I discuss time-varying correlation of a local market with the U.S. market and with each regional market by proposing three Markov-switching shock spillover models. A comparison of model performance is drawn based on a series of model selection criteria. In fourteen cases, the local market is found to be more sensitive to regional shocks. Disturbances from two regional markets account for a higher proportion of local variance than those of U.S. origin. I conclude that the regional center, although having little mean spillover effect upon the local markets, has become increasingly influential in volatility transmission. Possible extended studies in the future as well as main findings in the preceding chapters are summarized in Chapter 5.

This thesis investigates the dimensionality of brand value from the consumer perspective and tests how value dimensions relate to loyalty at the brand level. Firstly, a novel conceptualisation of perceived brand value is offered based on consumption values theory. Five dimensions are deployed to constitute the brand value scale; functional value, economic value, social value, emotional value and epistemic value. These dimensions are then tested in a holistic model to assess i) the reliability and validity of the scale, ii) the impact of brand leadership and corporate image on relative value dimensions, and iii) the segregated influence on value dimensions on repurchase intentions and positive word-of-mouth. Qualitative and quantitative methods are used to collect data from the high-technology market segment in Saudi Arabia owing to the country’s strong economic situation along with the accelerated penetration of high-tech brands into the Saudi market. First, four rounds of focus group discussions with university students conducted to confirm and enhance existing scales of brand value dimensions and developing new scale for the epistemic value construct at brand level. A self-administrated questionnaire was developed from both literature and focus groups and content and face validated by academics and subject matter experts. Then, 1020 questionnaires were distributed to several college-level schools in the city of Jeddah, 771 were returned, and 510 completed responses were used for final analysis. Exploratory and confirmatory factor analyses used to validate the dimensionality and reliability of the integrated scale of brand value. Structural equation modelling techniques applied to test the conceptual model and research hypotheses. Twenty-one items are retained to represent five dimensions of brand value scale and fourteen out of sixteen hypotheses are accepted. Thus, findings of empirical research confirm theory in that i) consumers perceive value of brands from multiple perspectives, ii) brand associations significantly contribute to value of brands, and iii) value dimensions encourage brand loyalty at dissimilar levels. At academic level, researchers can use the developed scales to study the mutual relationships between other brand associations and various dimensions of brand value. The newly developed measure of epistemic value can also be used to examine the impact of added high-tech features on aspects of consumer behaviour e.g. consumer-brand relationship. At managerial level, brand managers can use the developed scale to assess the strengths and weaknesses of their brands. According to the relevant importance of functional, economic, social, emotional and epistemic values to customers, loyalty programmes and customer relationship management can be tailored to match consumer needs. Finally, market segmentation can adapt value-based strategies to tap into new markets more successfully.

The purpose of this diploma thesis is the analysis of macroeconomic development of China in 1990 - 2014 in four key economic areas: economic performance, financial sector, labor market and internal and external equilibrium. The main hypothesis is that China is not threatened by a hard-landing in the next few years. The theoretical part explains the basic terms and defines the research framework. In the empirical part is conducted the analysis of the selected indicators in that framework, consisting of internal and external equilibrium, labor market and demographic trends, financial sector, fiscal and monetary policies and additional growth factors. The result of the empirical part is the construction of a SWOT matrix. At the end there are proposed the recommendations for setting the future economic policy in China.

This thesis is basic overview of luxury sector in the international environment. The paper deals with the development of international luxury markets and examines the impact of global economy on the overall performance of the luxury sector. It also explores the issue of democratization of luxury and degradation of luxury brands affected by the wave of globalization and the expansion of luxury brands on emerging markets.

This paper seeks to provide further insight as to why local Ghanaian firms may not be pursuing regional growth as a strategy, as publicly available data would suggest. The study uses Resource Based Theory and Institutional Theory to identify a range of factors that may be influencing, at a firm level, the decision whether or not to pursue a regional growth strategy. The study draws upon a sample of 65 Top Tier Local Ghanaian Companies. A key finding of this study is that a large number of local companies were providing services or products to the regional market. Evidence suggest that although local firms were at the early stage of internationalization, due to various factors identified in the study, these firms had chosen not to formally commit resources in pursuing regional growth as the traditional ―Stage Theory‖ of Internationalization would suggest. The result of the study highlights certain risk to managers and owners choosing not to actively pursue a regional growth strategy. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted