Dynamics of pro-market institutions and firm performance

• 成果类型: Article
• 署名作者: Banalieva, Elitsa R.; Cuervo-Cazurra, Alvaro; Sarathy, Ravi
• 署名单位: Northeastern University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-018-0155-7
• 发表日期: 2018
• 页码: 858-880
• 关键词: pro-market institutions; pro-market reversals; Pro-market reforms; Institutional economics; transaction costs; SIGNALING THEORY; EFFICIENCY; performance; Emerging markets

摘要

We analyze how pro-market institutions affect firm performance in emerging markets. Integrating transaction costs and signaling theory, we advance three arguments. First, we separate four dynamic components of pro-market institutions: intensifying and fading pro-market reforms and intensifying and fading pro-market reversals. Second, we propose an asymmetric dynamic view whereby not only intensifying reforms but also fading reversals improve firm performance, while not only fading reforms but also intensifying reversals reduce performance. Finally, we argue that more efficient firms perform better under each of the dynamics. We test these arguments on a sample of 1092 firms from 34 emerging markets during 1998-2011.