Industrielle Beziehungen. Zeitschrift für Arbeit, Organisation und Management

Cash holdings, tax policies, and institutional environments of innovative enterprises

Fengfei Chang Lee — Mon, 10 Jan 2022 00:00:00 +0000

We discover a positive association between a firm's innovativeness and its cash holdings using data from 11,653 innovative enterprises in 51 non-US economies. This relationship is even stronger now that patent boxes have been implemented, which provide preferential tax treatment for patent income. Additionally, creative multinationals that face increased repatriation taxes amass larger total cash holdings. The positive innovativeness–cash relationship is more pronounced in countries with higher R&D tax credits, less developed financial markets, stronger governance, stronger shareholder rights, more technicians, better infrastructure, and greater investment freedom, as well as in industries with fiercer competition and longer innovation cycles. Innovative organizations with greater cash on hand invest more in research and development and generate more patents. In general, our findings shed light on the factors that contribute to the massive wealth buildup in creative enterprises globally.

Evidence from 1992 to 2019 on the dynamics of managerial authority and CEO remuneration during company crises

Chin Tae Zan — Mon, 10 Jan 2022 00:00:00 +0000

We investigate the dynamics of two governance constructs, management influence over the board of directors and CEO remuneration, in enterprises in crisis from 1992 to 2019. Data reveal a strong trend of improving governance over time, which confounds the conclusion concerning the impact of distress on governance. Using a bias-corrected matching estimator to control for secular trends, we find that distressed businesses cut management board appointments and CEO compensation, deepen managerial incentive alignment, and increase CEO turnover. The performance-related component of CEO remuneration accounts for the majority of changes in CEO compensation in troubled businesses, which is consistent with the "shareholder value" perspective on CEO compensation.

Issues with mobile money in developing countries

Kevin Joseph Jr. — Mon, 10 Jan 2022 00:00:00 +0000

A major criterion is the reduction of snags in the management of mobile money systems. The study was prompted by the ongoing problems with mobile money management. Previous research in underdeveloped nations concentrated mostly on technology algorithms for mobile money systems, with little attention paid to managerial issues. The research aims to reduce hiccups in the management of mobile money systems. A qualitative investigation was carried out, which was supported by activity theory and directed by an interpretative paradigm. The major data tools were semi-structured interviews and an internal document review. Expert purposive sampling was used, and data was thematically evaluated and themes were mapped onto activity theory nodes. The study's key findings included inadequate monitoring of mobile money agents, insufficient confidentiality and privacy in financial transactions, the use of general accounts for financial transactions, the use of generic guidelines and policies, third-party involvement in sensitive mobile money activities, and weak staff recruitment policies. The study's managerial implications include online customer registration, the implementation of online transaction monitoring, the online categorization of mobile money accounts, digital financial crime checks, digital validation of customer identities, and the continuous review and updating of mobile money guidelines.

Panel evidence from rural Uganda on mobile money, risk sharing, and educational investment

Daniel Alves Abba — Mon, 10 Jan 2022 00:00:00 +0000

We investigate the influence of the rapidly developing mobile banking service "mobile money" on rural households' capacity to smooth their investment in education following a negative shock. We find that a negative shock reduces per school-age kid educational spending by 9.3 percentage points in families that do not utilize mobile money but by 8.3 percentage points in homes that have used mobile money. The underlying process is a rise in remittance receipts and sender variety as a result of the lower transaction costs afforded by mobile money. We demonstrate that our findings are resistant to alternative processes. We utilize the extension of the mobile money agent network as an exogenous variable in mobile money access.

A model for Ugandan traders' use of mobile money services

Mahdi Giozafat — Mon, 10 Jan 2022 00:00:00 +0000

Mobile money services give trade benefits such as bill payment, decreased transaction costs and time, expanded savings possibilities, sales, and convenience. Despite the benefits, traders in Uganda are still slow to adopt and use mobile money services. This article reflects on the findings of a study that looked at the barriers that merchants experience while utilizing and implementing mobile money services in Uganda. A self-administered questionnaire was utilized to obtain data from 394 survey respondents. A model for encouraging traders to use mobile money services is offered. The suggested model expands on the Unified Theory of Technology Acceptance and Use. According to regression study, performance expectancy, social factors, and sensitization components all have a substantial impact on the behavioral intention of mobile money service uptake for trade. On the other hand, security and effort expectation had no significant affect on traders' behavioral intention to use mobile money services. Furthermore, the data show that enabling conditions affected the utilization of mobile money services for commercial transactions. The suggested approach is adaptable and generic, and it may be used in other developing nations with comparable circumstances to Uganda.

Extending UTAUT2 in Mobile Money Adoption and Actual Use Behavior: an Empirical Research in Vietnam During The Covid-19

Duc Dang Thi Viet, Luan Nguyen Thanh, Anh Nguyen Duc Hoai — Mon, 10 Jan 2022 00:00:00 +0000

The purpose of this article is to study the antecedents of behavioral intention toward mobile money, as well as the mediating impact of trust on behavioral intention and financial inclusion, using an enlarged uniﬁed theory of technology acceptance and use. The data were collected and analyzed using SmartPLS 3.0. To establish the exogenous constructs’ relevance and performance, a matrix analysis of importance-performance was performed. The ﬁndings reveal that the behavioral urge to utilize mobile money is primarily driven by awareness, structural assurance, habit, and performance expectation. The behavioral intention of mobile money will considerably inﬂuence its adoption, and trust will not operate as a mediator between behavioral intention and ﬁnancial inclusion.

Investigating the impact of mobile money to well-being from a capabilities standpoint

Patricia Mac Alexa — Mon, 10 Jan 2022 00:00:00 +0000

Using data from the Upper East Region of Northern Ghana, this study examined the influence of mobile money on well-being and development from a competence standpoint. The data reveals that mobile money use has a variety of capability-enhancing effects, ranging from empowerment to engage in the financial system to choice and agency to satisfy multiple functions that lead to higher well-being outcomes in work, health, and education. Erratic power supply and a weak network signal in some places are unfreedoms that must be removed in order for people to benefit from mobile money's enormous potential for well-being and human progress. The long-term reliance on family and social networks for financial assistance is a capability-decreasing element of mobile money. The study's findings indicate the need for development researchers to embrace a diverse and pragmatic conceptualisation of development in information and communication technologies.

Mobile Money for the Unbanked in Emerging Markets

Jing Jin — Mon, 10 Jan 2022 00:00:00 +0000

Mobile money, together with mobile broadband, is likely to be the primary growth engine for emerging market mobile network carriers. The service is gaining popularity and is beginning to contribute considerably to telecom income.

There are still 2 billion individuals worldwide who do not have a bank account. This group is primarily located in less developed areas (Africa, part of Asia, and Latin America). A typical use case of a distant worker sending money to the family for living expenses is highly expensive for persons who do not have financial inclusion. Mobile penetration is substantially higher, allowing for these remittances to be sent in a cost-effective and simple manner. Because the system is based on feature phones and 2G technology, end users do not need to have the most recent smartphone or mobile broadband (SMS or Unstructured Supplementary Service Data-USSD channel).

The most common application is domestic remittance. Bill payments and merchant payments are two others. International remittances are now feasible across various operators as well (cross-MNO agreements). Globally, there were already more than 100 million active mobile money accounts in 2014, with services available in around 90 countries.