Skolkovo Moscow School of Management

About: Skolkovo Moscow School of Management is a education organization based out in Moscow, Russia. It is known for research contribution in the topics: Emerging markets & Planned economy. The organization has 19 authors who have published 25 publications receiving 224 citations.

MNC strategy and social adaptation in emerging markets

Abstract: Emerging markets experience institutional and social changes over time that present different stakeholder expectations for multinational corporations (MNCs). MNCs are often accused of social misdeeds and experience public crises during the changes, leaving questions on how they adapt to the local social transition to sustain operations. Conventional adaptation strategies put too much emphasis on maximizing economic returns by arbitraging national differences and catering to local market and consumer characteristics. The economic orientation may fail to address evolving and diverse stakeholder expectations, easily leading to public crises. This study conceptualizes economic adaptation and social adaptation as two sets of knowledge and capabilities that would have equally important impacts on MNCs’ sustainable operations in emerging markets. The empirical testing examines consumer rights-related public crises experienced by 180 MNCs in China. The results suggest that MNCs’ social adaptation activities have significantly positive effects in mitigating public crises while certain aspects of economic adaption, such as early entry into China, reliance on local leadership, and speedy expansion of local employees, lead to public crises. The significant interaction effects confirm that MNCs need to follow a balanced approach, paying attention to both economic and social components to avoid public crises and sustain growth in emerging markets.

Facing global economic crisis: Foreign sales, ownership groups, and corporate value

Abstract: This study extends the research on internationalization to a new organizational context – emerging market firms (EMF), and a new time context – global economic crisis. We propose a U-shaped relationship between foreign sales intensity and firm value for EMFs during global economic crisis. Further, we distinguish between EMFs’ relational owners (i.e., business groups) and transactional owners (i.e., institutional investors) to investigate their different moderating effects. We find empirical support for our hypotheses using a sample of Chinese firms during the global economic crisis in 2008. Moreover, we provide research and practice implications.

Fear and Greed in Financial Markets: A Clinical Study of Day-Traders

Abstract: We investigate several possible links between psychological factors and trading performance in a sample of 80 anonymous day-traders. Using daily emotional-state surveys over a five-week period as well as personality inventory surveys, we construct measures of personality traits and emotional states for each subject and correlate these measures with daily normalized profits-and-losses records. We find that subjects whose emotional reaction to monetary gains and losses was more intense on both the positive and negative side exhibited significantly worse trading performance. Psychological traits derived from a standardized personality inventory survey do not reveal any specific "trader personality profile", raising the possibility that trading skills may not necessarily be innate, and that different personality types may be able to perform trading functions equally well after proper instruction and practice.

The Psychophysiology of Real-Time Financial Risk Processing

Abstract: A longstanding controversy in economics and finance is whether financial markets are governed by rational forces or by emotional responses. We study the importance of emotion in the decisionmaking process of professional securities traders by measuring their physiological characteristics, e.g., skin conductance, blood volume pulse, etc., during live trading sessions while simultaneously capturing real-time prices from which market events can be detected. In a sample of 10 traders, we find statistically significant differences in mean electrodermal responses during transient market events relative to no-event control periods, and statistically significant mean changes in cardiovascular variables during periods of heightened market volatility relative to normal-volatility control periods. We also observe significant differences in these physiological response across the 10 traders which may be systematically related to the traders' levels of experience.

Russian Arctic Offshore Petroleum Governance : The effects of western sanctions and outlook for northern development

Abstract: The Arctic has historically been a strategically important region for Russia, from before the Cold War to the recent efforts in increasing shipping along the Northern Sea Route. Russia holds the largest share of petroleum resources in the Arctic, the governance model for which has been changing over the past few decades based on the current political priorities, external events, and geophysical changes in the region. Following the conflict in Ukraine, the European Union and the United States adopted sanctions limiting the cooperation between Russian and western companies for Arctic offshore petroleum development. This paper analyses the transformation in national governance of natural resources in the Russian Arctic, focusing on offshore oil and gas. It provides a historical background of the governance model to facilitate the analysis of the effects of western sanctions on the current resource development and its regulation. Through the analysis of legal and policy documents, this paper provides an outlook for future developments in the Russian Arctic offshore resource governance.