Brazilian Administration Review

The perpetual myth of deglobalization

2023-03-31T19:21:17+00:00

‘Deglobalization’ has been bandied about now for almost a decade, capped off with the war in Ukraine and its geopolitical and geoeconomic impacts on global trade, investment, and finance. However, there have been and continue to be developments that run counter to the argument that we are living in a period of deglobalization. For example, China’s state firms are major investors in Latin America’s energy, roads, dams and other infrastructure, and space industries. In fact, China has surpassed the United States as South America’s largest trading partner. Taiwan Semiconductor Manufacturing Company (TSMC) is investing $40 billion in chip manufacturing in Arizona. And Mexico’s Grupo Bimbo has been actively doing business in China for over five years. Admittedly, the world economy is in a period of contraction. However, this slowdown in growth can be attributed as much to politics, in the form of nationalism and populism, as to economics. Additionally, measures of globalization and trade, in general, focus on manufactured goods, yet services comprise the most robust, fastest growing and dynamic sector of the economy worldwide. Any discussion of globalization and deglobalization must also address non-tariff barriers to international trade, the growth of startups, later-stage companies, and cross-border data flows. In essence, there has been no generalized decline in international economic activity but rather the growth rate has slowed. Globalization is here to stay.

Good news from mass media induces more investments in the equity crowdfunding market

2023-01-30T15:23:32+00:00

This study verifies the association between the text sentiment of news items and the value of capital investments in the equity crowdfunding market. It also analyzes the influence of geographic attributes on the investments made. Based on data for 736 investments made in different ventures in the largest equity crowdfunding platform in one of the main emerging markets, this study’s results indicate that the attributes of ventures can affect the amount of capital invested in them. In addition, published mass media news items that have a greater quantity of positive words can stimulate larger investments in these ventures. On the other hand, the geographic distance between the entrepreneur and the investor can negatively affect the value of these investments. These results are relevant since they can contribute to the definition of fundraising strategies on the part of entrepreneurs and platform managers.

Oil and gas companies — Are they shifting to renewables? A study of policy mixes for energy transition in Brazil

2023-02-02T12:24:45+00:00

We argue that there is a need to advance further research that strengthens the analysis of policy mixes for the energy transition in major emerging economies. In this context, this article aims to answer the following question: How do Brazil’s policies favor or hinder an energy transition of oil and gas companies (O&G) to renewables? To achieve this purpose, we conducted literature and archival research and interviews with experts to analyze (a) Brazil’s energy policy mixes that address O&G and renewables issues; and (b) major O&G companies’ activities and perspectives that influence the energy transition. Results demonstrated that though some of the O&G companies have made significant renewables investments in the last years, they continue focusing on O&G activities. We discuss the main policy mix features that hinder the prioritization of renewables by these O&G companies and that can undermine a sustainable energy transition in Brazil.

Tax Compliance in the wild: Critical review of nudging and proposition of an integrative framework

2023-02-23T18:25:02+00:00

Context. There is an inflation of behavioral frameworks applied to social problems, such as tax dodging. There has been also a surge in the creation of the so-called nudge units throughout the world, following the success of the pioneer units in USA and UK. Meanwhile, there has been criticism directed at aspects such as ‘psychologism,’ paternalism, and short-termism associated with nudge approaches. Moreover, by ignoring systems thinking, complexity science and other broader approaches, nudging may lead to interventions that can be ineffective or counterproductive in the long term. Goal. To overcome such limitations, the paper proposes an integrative framework, the Nested Circles Model, which put the intended behaviors in a perspective ranging from microworlds to broader upstream influences. Method. The paper employs a qualitative approach to critically review the literature on nudging and map its shortcomings. Results and contributions. The proposed model integrates major concepts from popular behavioral frameworks and incorporates elements that influence the repertoire of behaviors adopted by individuals, including intangible stocks (trust and fairness) and complexity markers. The paper concludes by exemplifying the application of the Nested Circles Model to three problems in the context of taxation in Brazil.

The effects of sovereign rating and corporate governance on the capital structure of Latin American companies.

2023-02-24T20:32:21+00:00

This study analyzed the effects of sovereign rating and corporate governance (CG) on the capital structure of Latin American companies. A multilevel regression model was used for 823 companies listed on major Latin American stock exchanges over the period 2004-2018. The results showed that firm level is the most responsible factor for the variation in companies’ capital structure, while country level had the greatest influence on the variation in long-term debt. In the absence of CG mechanisms, sovereign rating is one of the factors not controlled by managers that can explain the capital structure of Latin American companies, which reduce their debt levels to protect themselves in the face of their countries’ sovereign rating variations. The results indicated that, despite having an audit committee and keeping independent members on the committee, firms choose to reduce their debt levels to protect themselves against the
constant variations of their countries’ sovereign rating. The results also showed that CG mechanisms do not act in isolation when it comes to reducing agency problems. This research is one of the first studies to provide evidence on the implications of sovereign ratings and CG on the capital structure of firms in Latin America.

The (in)efficiency of emerging and developed markets: An analysis from fractal theory

2023-02-24T20:53:10+00:00

The objective of this article is to study the behavior of the stock markets in emerging countries (BRICS) and developed countries (USA, England, Germany, and Japan), aiming to identify the evolution of their degree of efficiency between June 2007 and July 2021 based on the hypothesis of fractal markets. Using the Hurst exponent, the fractal dimension, and entropy approximation, it was built a market efficiency index. Among the main results, inconstancy of the efficiency indices over time was identified, which is consistent with previous studies within the field of econophysics. In addition, most of the inefficiency is due to the presence of deterministic elements in asset price variations, with a similarity in the efficiency level between the groups of emerging and developed countries, except for the case of China, which presented a singular behavior, which motivates new studies in this market. Finally, the results indicate the relevance of the cointegration effects of the analyzed markets, which is reflected in the inefficiencies of these markets over time.

The impact of gamification on entrepreneurial Intention in a Brazilian technical business school

2023-03-17T13:51:41+00:00

This paper aims to evaluate the impact of gamification as a practice of teaching entrepreneurship on the entrepreneurial intention. We applied the FishBanks simulation to entrepreneurship classes of a Brazilian technical business course at the Federal Institute of Rio Grande do Norte (IFRN). We adopted as an identification strategy the use of the methods of difference-in-differences, combined with propensity score matching and quantile regression to investigate the impact of gamification on entrepreneurial intention of the students of a technical business course. The sample was composed of 191 students on a longitudinal panel of two periods, with 106 students in the treatment
group and 85 students in the control group, totaling 382 observations. The results indicate a positive and statistically significant impact of the use of the business game on the entrepreneurial intention. Furthermore, we observed a higher impact of gamification in entrepreneurial intention of the students in the first quartile of the entrepreneurial intention.

Individual intrapreneurial behavior effect on project success: Profiles and distinct Outcomes

2023-03-27T18:29:24+00:00

This study sought to investigate the effect of intrapreneurial behavior on project success dimensions. Although extant literature examines diverse aspects of influence on project success, it is silent on assessing intrapreneurial effects, even though companies target and foster such behavior. We found that the more the intrapreneurial behavior and profile increase, the greater the possibility of project success in a broad sense, regarding clients, project teams, strategies for the company’s future, commercial success, and efficiency. Latent class analysis reached three heterogeneous profiles in terms of intrapreneurship. These findings bring evidence of the importance of fostering intrapreneurial behavior on project teams, considering that members will develop it differently, leading to distinct project success outcomes in the middle and long term. Data from 411 project management participants were analyzed through exploratory factorial analysis, PLS-SEM, and latent class analysis. Finally, theoretical and managerial implications are discussed, along with the study’s limitations, and further proposed studies.