This study uses a threshold regression model and finds new evidence that the positive impact of FDI on growth "kicks in" only after financial market development exceeds a threshold level. Until then, the benefit of FDI is non-existent. JEL ClassificationsF23; F36; F43; O16

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Purpose The purpose of this paper is to examine the effects of pricing mechanism on initial public offerings (IPOs) oversubscription in Pakistan. Design/methodology/approach This study used cross-sectional data to analyse 85 listed IPOs on the Pakistan stock exchange during the period of 2000-2017 to assess hypotheses related to influential determinants of IPO oversubscription. Accordingly, ordinary least square, robust regression and quantile regression approaches were applied in this study to evaluate the factors that influenced oversubscription. Findings The outcome displayed pricing mechanism is negatively significant with an oversubscription of IPOs. This indicates firms using the fixed-price mechanism signalled higher information asymmetry and uncertainty in their value. Thus, investors are aware that they will be offset with underpricing, and it is expected the demand will be higher for the particular IPOs. Research limitations/implications This study is entirely focused on the available information of prospectus that should not be ignored by potential investors at the time of subscription of IPO. Therefore, the study contributes to extending the available literature in signalling theory whereby issuers should consider using the book-building pricing mechanism in enhancing the efficiency of the IPO offer price during the listing. Originality/value This paper provides evidence for the determinants of the IPO oversubscription.

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This study investigates factors that might predict financially distressed small-and medium-sized enterprises (SMEs) 4 years, 3 years, 2 years and 1 year prior to distress. We employ logistic regression to identify the predictors of distressed SMEs in the manufacturing sector. Debt ratio is found to be consistently significant throughout the period of study. It is the main cause of failure among SMEs in Malaysia, as they rely heavily on debt to support their operations. The finding also shows that young companies have a higher probability of failure than established companies and that the bigger the size of a company, the higher the probability of that company entering distress. Other factors that are also found to be significant are current ratio, short-term liabilities to total liabilities, return on assets, sales to total assets and net income to share capital. In addition, the 1-year and 2-year prior to distress models provide the highest accuracy rate in detecting financially distressed SMEs.

This paper analyzes the contribution of external debt to Malaysia's economic growth. To investigate whether the external debt has contributed to the economic growth in the long run, the growth model is tested by applying the Autoregressive Distributed Lag (ARDL) bound test. In addition, the existence of the threshold effect is examined to estimate the optimal level of external debt. The empirical results reveal that the accumulation of external debt is associated with an increase in Malaysia's economic growth up to an optimal level, and an additional increase of external indebtedness beyond the level has inversely contributed to the Malaysian economy.

This study compares the individual-level and sample-level predictive utility of a measure of the cultural logics of dignity, honor, and face. University students in 29 samples from 24 nations used a simple measure to rate their perceptions of the interpersonal cultural logic characterizing their local culture. The nomological net of these measures was then explored. Key dependent measures included three different facets of independent versus interdependent self-construal, relevant attitudes and values, reported handling of actual interpersonal conflicts, and responses to normative settings. Multilevel analyses revealed both individual- and sample-level effects but the dignity measure showed more individual-level effects, whereas sample-level effects were relatively more important with the face measure. The implications of this contrast are discussed.

(2016) Nation-level moderators of the extent to which self-efficacy and relationship harmony predict students' depression and life satisfaction: evidence from ten