Matching Items (2)
Description
‘Institutional voids’ is a concept used to describe institutional effectiveness in developing economies. Namely as they relate to business environments and the market gaps the produce. Initially meant to describe how developing countries tend to lack effective institutional mechanisms such as adequate contract-enforcement that are commonplace in the West. However, since their introduction to academic literature in 1997, (Khanna & Palepeu, 1997) the scope of the idea has been expanded to describe problems such as a general absence of law enforcement and limited government support for social programs.
The primary question this thesis seeks to resolve is whether institutional voids have any practical use informing managers about business environments in the Global South. The hypothesis is that the concept is now so diffuse that it has become effectively meaningless and that managers in the real world use more sophisticated methods of assessing potential host countries. The telecommunications industry is particularly vulnerable to the institutional capabilities of host governments is because of its reliance on the host government to provide effective capital markets and appropriate legal mechanisms needed for investment in infrastructure and technology. For this reason, this research will focus on what role, if any, Institutional Voids play in corporate decision making.
After performing a comparative case analysis, the researcher found that after examining the cases the outcomes diverged from what the institutional voids hypothesis would have suggested, suggesting that the hypothesis is insufficient at predicting outcomes. Researcher then suggests using statistically proven models from development research to better analyze government capacity across countries.
The primary question this thesis seeks to resolve is whether institutional voids have any practical use informing managers about business environments in the Global South. The hypothesis is that the concept is now so diffuse that it has become effectively meaningless and that managers in the real world use more sophisticated methods of assessing potential host countries. The telecommunications industry is particularly vulnerable to the institutional capabilities of host governments is because of its reliance on the host government to provide effective capital markets and appropriate legal mechanisms needed for investment in infrastructure and technology. For this reason, this research will focus on what role, if any, Institutional Voids play in corporate decision making.
After performing a comparative case analysis, the researcher found that after examining the cases the outcomes diverged from what the institutional voids hypothesis would have suggested, suggesting that the hypothesis is insufficient at predicting outcomes. Researcher then suggests using statistically proven models from development research to better analyze government capacity across countries.
ContributorsCullen, Andrew Thomas (Author) / Ault, Joshua (Thesis director) / Gamso, Jonas (Committee member) / Thunderbird School of Global Management (Contributor) / Barrett, The Honors College (Contributor)
Created2019-12
Description
The purpose of this thesis was to create a valuation of Spotify (Ticker: SPOT) and estimate a share price for the company. Spotify is one of the largest music streaming services in the world, currently operating in 79 markets globally with a subscriber base of over 100 million people. Spotify initially offered April 3, 2018 at $132 per share and sees a huge amount of financial assets on their balance sheet due to continued investment. As a newly established high-growth company, Spotify has enjoyed a 30% average revenue growth year over year from 2014 to 2019. Although Spotify’s reach is quite large, the company is dwarfed by competitors such as Apple, Google, and Amazon in the extremely competitive music streaming industry. Within this paper, we first analyze the competitive landscape that makes up the music streaming industry. Once a baseline understanding of the music streaming industry has been reached, we turn the focus more directly onto Spotify through examining Spotify’s position within the market as well as the company’s current strategic goals and objectives. We then forecasted Spotify’s financial statements forward and created a residual income model (RIM) based on Spotify’s financial statements. As was previously stated, the purpose of this model was to arrive at a share price for Spotify that we believe accurately reflects its value and compare that with its current market trading price. After successfully accomplishing this goal, we conducted a comprehensive final analysis and offered Spotify recommendations based on the model as well and its output.
ContributorsRice, Ian (Co-author) / Nagele, Benjamin (Co-author) / Samuels, Janet (Thesis director) / Orpurt, Steven (Committee member) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2020-05