IAE Universidad Austral

About: IAE Universidad Austral is a based out in . It is known for research contribution in the topics: Emerging markets & Context (language use). The organization has 59 authors who have published 150 publications receiving 5557 citations.

Trade Credit and Bank Credit: Evidence from Recent Financial Crises

Abstract: This paper studies the effect of financial crises on trade credit in a sample of 890 firms in six emerging economies. We find that although provision of trade credit increases right after the crisis, it consequently collapses in the following months and years. We observe that firms with weaker financial position (for example, high pre-crisis level of short-term debt and low cash stocks and cash flows) are more likely to reduce trade credit provided to their customers. This suggests that the decline in aggregate credit provision is driven by the reduction in the supply of trade credit, which follows the bank credit crunch. Our results are consistent with the "redistribution view" of trade credit provision, in which bank credit is redistributed via trade credit by the firms with stronger financial position to the firms with weaker financial stand.

Non‐additivity in portfolios of exploration activities: a real options‐based analysis of equity alliances in biotechnology

Abstract: Firms invest in exploration-oriented activities to seek competitive advantage and in response to changing environments. Real options formulations represent an emerging strand of thinking on such investments. In this paper we begin with the observation that firms often simultaneously invest in multiple exploration projects. We identify two sources of potential interactions among these real options investments. First, we investigate the effects of correlations between the outcomes in different options. Second, we analyze the effects of investments that are fungible across project options. We show that under different conditions multiple options can be sub-additive (due to redundancies in outcomes) or super-additive (due to fungible inputs). We test the implications of our model with data from the biotech industry and find supporting evidence. Our model and results have some interesting implications for the exploration literature and real options lens. Copyright © 2004 John Wiley & Sons, Ltd.

Entrepreneurship: The Role of Cluster Theoretical Perspectives and Empirical Evidence from Germany

Abstract: Little theoretical or empirical research existsregarding the effect of clusters on entrepreneurship at the regional levelbecause of limitations surrounding concepts, theory, and methodology.Thepurpose of this study is to advance knowledge of clusters and to explain theirimpact on entrepreneurship. The paper examines entrepreneurship both within and outside of areas withclusters, clusters with external networks, and industrialagglomerations.A literature review provides information regarding theoryand hypotheses regarding the influence of clusters and of industrialagglomerations on entrepreneurship. Based on this previous research, three hypotheses are posed.To testthese hypotheses, data were attained from a variety of quantitative andqualitative sources, including the German Federal Labour Office(GFLO).This study did control for the four influential factors of supraregional factors, regional factors different from clusters, sensitivity ofresults to the aggregation of regional clusters, and spatialautocorrelation. The results of the data analysis indicate the followingfindings:clusters rather than industrial agglomerations do have an effecton entrepreneurship and clusters are better than pure market mechanisms tofoster entrepreneurship.(AKP)