Year in Review
- Click here to view the 2016 Year in Review
Introduction
After four years of operation, the Emerging Markets Institute is continuing to expand its reach, with more students, visiting scholars, publications and consulting projects. We fielded the winning team in a global case competition. We are working more with partner organizations within Cornell University and other universities. We published two books, and our faculty won international recognitions. We continue to attract more talent to Johnson, and our alumni are working in high profile roles from Ethiopia to Jakarta to New York. We are truly realizing the original vision behind the establishment of the institute: to build a highly regarded academic program for the study of emerging markets and provide a private forum for lively exchange among corporate leaders from emerging and developed markets and leading researchers.
We are also finding new ways to communicate. We launched our first edition of a newsletter, and established pagades on Facebook, LinkedIn, and Twitter. We also created new marketing materials to introduce companies to our program. The website continues to carry the bulk of our information, and we are constantly looking for new ways to improve it.
The Institute would like to thank its partners, sponsors and donors which made this year possible. Specifically, KPMG; BRICLab of the Center on Global Economic Governance, Columbia University; Center for Emerging Markets, Northeastern University; Nell Cady-Kruse, BS ’84, MBA ’85; Roberto Canizares, BS ’71, MBA ’74; Peter Luerrsen, MBA ’87; James Morgan, BS ’60, MBA ’63; Bob Staley BME ’58, MBA ’59; and Al Suter, BME ’58, MBA’59. We would also like to acknowledge many gifts from our Emerging Markets Fellows alumni.
Education
The Institute recruited 23 students from the first year class in the Johnson Ithaca Residential Program into our Emerging Markets Fellows program, and will be adding more from the one year Ithaca MBA program during the summer of 2015. The fellows undertake academic coursework, study trips and consulting projects focused on the Emerging Markets. We also graduated 31 students from the program, our highest number since the establishment of the institute. The fellows and others contributed 33 articles to the EMI website during the academic year, which have proven to be significant drivers for web traffic. Topics have ranged from pyschometrics as a tool to reduce default risk to how the decline in oil prices is affecting emerging markets differently.

We have plans to expand the fellows program in the next fiscal year to include students from our two Executive MBA programs (Metro New York and Americas), plus the Cornell Tech MBA students.
The Institute had a very robust array of consulting projects in the International Consulting Practicum, which is taught jointly with the Indian Institute of Management, Bangalore. Students travelled to Chile, Australia, and Colombia to deliver their final presentations, while others were handled via videoconference. Projects this year included:
- An Indian market expansion strategy for an international manufacturer of veterinarian products
- A Latin American entry plan for an Indian manufacturer of chemicals for the mining industry
- A detailed assessment of customers visiting a high end chain of hotel properties in Chile
- A social media plan to revitalize a consumer good product line for a Mexican parent corporation of a U.S. snack food manufacturer
- A Latin American market entry plan for a manufacturer of safety equipment for the telecommunications industry
- A strategic plan for a UK designer of data visualization software
- A plan to launch a private equity firm in Latin America
- A business model for making data driven investments in innovation for an Australian bank
- A plan for benchmarking financial performance for a Mexican distributor of consumer goods.
Study Trips
Johnson organized seven study trips during the 2014-15 academic year, involving 209 students. Destinations were Japan/Korea, Western Europe, South Africa, Israel, UAE, and Columbia
The Institute was directly involved in the study trips to India, South Africa and Colombia. During the Colombia trip, students were assigned projects to work with local companies. One project eventually evolved into a summer internship for an EMI Fellow with a family-owned distributor of motor oils and lubricants.
Research
Our faculty continued with a robust effort of research and publication during the academic year. The Emerging Markets Institute was a lead organizer in the Fourth Symposium on Emerging Financial Markets: China and Beyond, held on May 1 and 2, 2015 in New York City. The event featured a paper by Professor Warren Bailey and a panel discussion on shadow banking, moderated by Professor Andrew Karolyi. Additional emerging market-related publications include:
- Published Papers:
- Casanova, Lourdes S.; Rodríguez-Montemayor, Eduardo. “The Bridge Model: The Case of Spanish Multinationals Building Bridges between Asia and Latin America” Business and Politics 16.3 (2014): 373-479.
- Losada-Otalora, M.; Casanova, Lourdes S… “Internationalization of Emerging Multinationals: The Latin American case” European Business Review 26.6 (2014): 588-602.
- Casanova, Lourdes S.; Elola, A., (accepted),La internacionalización de las empresas vascas en la nueva realidad, Orkestra
- Zhang, Zhi-Xue; Chen, (George) Zhen Xiong; Chen, Ya-Ru; Ang, Soon. “Business Leadership in the Chinese Context: Trends, Findings, and Implications” Management and Organization Review10.2 (2014): 199-221.
- Kwak, Jin Kyung; Gavirneni, Nagesh. “Impact of Information Errors on Supply Chain Performance” Journal of the Operational Research Society 66.2 (2015): 288-298.
- Shunko, Masha; Debo, Laurens; Gavirneni, Nagesh. “Transfer Pricing and Sourcing Strategies for Multinational Firms” Production and Operations Management 23.12 (2014): 2043-2057.
- Hiatt, Shon; Sine, Wesley David. “Clear and present danger: Planning and new venture survival amid political and civil violence” Strategic Management Journal (2014): 773-785.
- Rao, Vithala R.; Pilli, L… “Conjoint Analysis para Pesquisa de Marketing no Brasil” Revista Brasileira de Marketing 13.4 (2014): 25-38.
- Accepted Papers:
- Casanova, Lourdes S.; Hertenstein, P.; Hobdari, B… “New Wine in Old Bottles? The Role of Emerging Markets Multinationals in advancing IB Theory and Research” International Journal of Emerging Markets (Accepted – planned to evolve into a book)
- Zhao, G; Chen, Ya-Ru; Brockner, J… “What influences how procedurally fair managers are toward their subordinates? The role of subordinate trustworthiness” Journal of Experimental Social Psychology (Accepted)
- Karolyi, Andrew; Liao, Rose. “State Capitalism’s Global Reach: Evidence from Foreign Acquisitions by Sovereign Authorities” Journal of Corporate Finance (Accepted)
- Narayan, Vishal; Rao, Vithala R.; Sudhir, K… “Early Adoption of Modern Grocery Retail in an Emerging Market: Evidence from India” Marketing Science (Accepted)
- Working Papers:
- Bailey, Warren B.; Zheng, Lin; Zhou, Yinggang. “What makes the VIX Tick?“
- Castro de Oliveira Lopes, Alberto; Campos Filho, L. A.N.; Casanova, Lourdes S… “Dynamics of IORs: A case study of upstream partnerships of Petrobras“
- Gonçalves, Marta Xavier; Campos Filho, Luis Alberto N.; Casanova, Lourdes S.; Jardim, Paula Esteban. “Institutional Theory, Membership in Business Groups and the Internationalization of Brazilian Multinationals“
- Casanova, Lourdes S… “Multinational Strategies in Latin America: Comparing East Asian, European, and North American Multinationals”
- Casanova, Lourdes S… “Multinational Strategies in Latin America: Comparing East Asian, European, and North American Multinationals”
- Otalora, Mauricio Losada; Casanova, Lourdes S… “Resources and Internationalization Strategies: The case of Latin American Multinationals“
- Martins Almeida, L. M.; Campos Filho, L. A.N.; Casanova, Lourdes S… “The Brazilian Institutional Environment: The Impact on Companies’ Strategies in the Oil and Gas Sector“
- Karolyi, Andrew. “Home Bias, an Academic Puzzle“
- Karolyi, Andrew; Wang, Xinli. “Outbidding Competitors Worldwide: Imperfect Capital Markets, Exchange Rates, and Asset Sales”
- Karolyi, Andrew; Liao, Rose. “The Economic Consequences of Investor Relations: A Global Perspective“
- Karolyi, Andrew. “The Gravity of Culture for Finance“
- Doidge, Craig; Karolyi, Andrew; Stulz, Rene M… “The U.S. Listing Gap“
- Scholarly Books:
- Casanova, Lourdes S.; Kassum, Julian, 2014, The Political Economy of an Emerging Global Power: In Search of the Brazil Dream, Palgrave Macmillan.
- Karolyi, Andrew, 2015, Cracking the Emerging Markets Enigma, Oxford University Press.
- Book Chapters:
- Casanova, Lourdes S., (accepted), Las Multinacionales Latinoamericanas ante la ‘nueva realidad’, inUn Siglo de Cambios: Familias Empresarias y Grandes Empresas y Grupos Familiares en America Latina y Espana, eds P. Fernandez and A. Lluch.
- Casanova, Lourdes S.; Renck, H. Brusius Brust, (accepted), Business Sector Responses to the Rise of the Middle Class, in Latin America’s Emerging Middle Class, eds J. Dayton, Palgrave Macmillian.
- Casanova, Lourdes S.; Kassum, J., (accepted), Brazil, inA Economia Politica de uma Potencia Global Emergente, Qualitymark.
- Casanova, Lourdes S., (accepted), Innovation in Latin America, inInnovation in Emerging Markets, eds J. Haar and R. Ernst, Palgrave Macmillan.
- Chen, Ya-Ru; Silberzahn, R; Yoon, H J, (accepted), Beyond cross-national comparisons: Unpacking interactions across national cultures, in Research in Managing Groups and Teams: Looking Back, Moving Forwards: A Review of Group and Team-Based Research, eds M.A. Neale, E.A. Mannix, Emerald Group Publishing Limited.
- Chen, Ya-Ru; Blader, S.; Ridgeway, C., (accepted), The world is NOT flat: Power and status dynamics across cultures, in Research in Organizational Behavior, eds B. Staw & A. Brief, Elsevier.
- Gagnon, Louis; Karolyi, Andrew, (accepted), Do International Cross-Listings Still Matter?, in Evidence on Financial Globalization and Crises, eds Thorsten Beck, Sergio Schmukler, Stijn Claessens, Elsevier North-Holland Publishers.
- Conferences and Presentations:
- Casanova, L. 2015. The state of Brazilian economy. US/Brazil Council. 2015. Midyear Meeting. Washington. 4 June 2015. US. Chamber of Commerce. http://www.brazilcouncil.org/events/2015-midyear-meeting.
- Casanova, L. 2015. Latin America. Beyond the BRICS. 2015 6th annual CEM Symposium. Northeastern University. 2 June 2015. http://www.damore-mckim.northeastern.edu/events/2015/04/16/10/49/6th-annual-cem-symposium/.
- Casanova, L. 2015. Privatization of Telecoms In Latin America. Global Agenda Council Latin America. World Economic Forum. Latin America meeting. 6 May 2015. Riviera Maya. Mexico.
- Casanova, L. 2015. Developing collaboration in emerging markets. 2015 April International conference and Annual Meeting. AACSB. Tampa. Florida. 28 April 2015. https://www.aacsb.net/eweb/Dynamicpage.aspx?Site=AACSB&WebKey=dec31120-4899-44f2-a903-1b524e840d41&RegPath=EventRegFees&REg_evt_key=78172a15-b6fb-4aaa-98a8-ec86bbd4f36f
- Casanova, L. 2015. Latinos in the Corporate World. Café con Leche discussion. Society of Hispanic Professional Engineers. Cornell University. Latino Center. 17 April 2015 at 6:30pm.
- Casanova, L. 2015. Women in emerging Economies. We are the Solution. Cornell University. Warren Hall 825. 11 April 2015.
- Casanova, L. 2015. Regional Overview. Foreign Direct Investment/Outward Foreign Direct Investment: facing a New Regionalization? Strategic Management Society. Special Conference. Santiago de Chile. Chile. 21 March 2015.
- Casanova, L. 2015. Presentation of the book: The Political Economy of an Emerging Global Power. In Search of the Brazil Dream. ESADE. Sant Cugat Campus. March 11th, 12:30. Open Research Seminar. Department of Strategy and General Management. Observatory of Spanish Multinational Companies (OEME). http://us10.campaign-archive2.com/?u=fb4f8577a4b0a2ebc2eedf35f&id=759ec6db60&e=2a53ef4f93
- Casanova, L. 2015. Brazil at a Crossroads. A conversation about the Future Prospects of the Brazilian Political Economy. Harvard Club of NYC Special Interest Group. Diversity, Development and Democracy. Wednesday February 18, 2015 – 6 30 to 8pm. Harvard Club of New York City. 27 West 44 St. New York, N.Y.
- Casanova, L. 2015. The Political Economy of an Emerging Global Power. Management Library. Johnson. 101 Sage Hall. 3 February at 4 30pm. Chats in the stacks. http://events.cornell.edu/event/In_Search_of_the_Brazil_Dream
- Casanova, L. 2015. Internationalization of Family Business and Entrepreneurial Businesses in Latin America. 23 January. Santiago de Chile. Chile. http://www.aiblat2015.com/ AIB-LAT. Fifth annual Conference. http://papeldigital.info/negocios/#
- http://www.ese.cl/noticia/el-ese-organiza-la-conferencia-internacional-de-la-academy-of-international-business-aiblat-2015/
- http://www.uandes.cl/noticias/con-gran-exito-se-realizo-quinta-conferencia-anual-de-la-academy-of-international-business-aiblat-2015.html
- Casanova L. 7 November 2014. Miami. Innovation in the Global Market Place. Latin Trade. Bravo Awards. http://www.prnewswire.com/news-releases/influential-corporate-and-policy-leaders-gather-for-2014-latin-trade-symposium–bravo-business-awards-531012778.html
- Latin Trade Interviews: https://www.webcaster4.com/Webcast/Page/269/6406
- Interview: https://www.webcaster4.com/Webcast/Page/269/6781
- Casanova, L. 2014. Key success factors of Multilatinas. Foro Multilatinas. 22 October 2014. Mexico City. Mexico. www.foromulatinas.com
- Casanova, L. 2014. The Political Economy of an Emerging Global Power: In Search of the Brazil Dream.
- Casanova, L. 2014. The Political Economy of an Emerging Global Power: In Search of the Brazil Dream. . October 15 2014. Council of the Americas. NYC http://www.as-coa.org/events/book-launch-search-brazil-dream
- Casanova, L. 2014. Emerging Multinationals 2.0. October 8. Tsinghua University.
- Casanova, L. 2014. The Political Economy of an Emerging Global Power: In Search of the Brazil Dream. October 6th @ Inter American Development Bank. Washington DC.
- Casanova, L. 2014. The Political Economy of an Emerging Global Power: In Search of the Brazil Dream. . October 1st at 5:30pm @ Sage in room B01. Johnson School of Management. Cornell University. https://www.johnson.cornell.edu/Emerging-Markets-Institute
- Casanova, L. 2014. The Political Economy of an Emerging Global Power: In Search of the Brazil Dream. LASP, Einaudi Center September 29th in 202 Uris Hall @12:15. Cornell University. http://lasp.einaudi.cornell.edu/node/1313
- Coyle, R. 2015. Annual Global Leadership Forum, Association of Management Consulting Firms, Panel Moderator, NYC, May 14, 2015
- Coyle, R. 2015. Third Annual Conference, “Doing Business with the BRICS”, Eurasia Centre/Eurasia Business Coalition, Panelist, Washington, DC, May 18, 2015
- Karolyi, A. 2014. Presenter, PhD Summer School, Peking University (Beijing, China, July)
- Karolyi, A. 2015. Financial Management Association Asia meetings (Seoul, Korea)
- Karolyi, A. 2015. University of Mississippi, Board of Governors of the Federal Reserve Board (Washington),
- Karolyi, A. 2015. Research Affiliates Advisory Panel (Laguna Beach, CA)
- Karoyli, A. 2015. University of Alberta’s Frontiers of Finance Conference (Banff)
- Karolyi, A. 2015. UC Riverside Inaugural Citrus Finance Conference
- Karolyi, A. 2015. Western Finance Association Meetings (Seattle)
- Karolyi, A. 2015. Keynote Address, Mid-Atlantic Research Conference (Philadelphia, March)
- Karolyi, A. 2015. Invited Address, Research Affiliates Advisory Panel Meetings (Laguna Beach, California)
- Karolyi, A. 2015. Keynote Address, Wake Forest University Conference on Culture and Finance (Winston-Salem)
- Special Recognitions:
- Casanova, L. Named by Esglobal as one of the 50 most influential Iberoamerican intellectuals, November 19, 2014
- Karolyi, A. Recognized by Thomson Reuters as one of the world’s most influential scientific minds in the category of Business and Economy, 2014
Outreach
The institute was initially founded as a vehicle to bring together preeminent practitioners and academics from around the world to develop the next generation of global business leaders and create the premier research center on the role of emerging markets in the global economy. As a part of this, we have an active program of outreach with the business community and organized a full agenda of activities:
Global Speakers Series
The Institute hosted another compelling roster of executives who took the time to speak to the Institute and other members of the Johnson community on timely issues affecting the emerging markets. Speakers this year included:
- Arindam Bhattacharya, Managing Director, Boston Consulting Group (BCG), Delhi
- Roberto Cañizares, BS ’71, MBA ’74, former President, MSA International
- Lourdes Casanova, Sr. Lecturer and Academic Director, Emerging Markets Institute
- Raj Rajkumar, Partner Symphony Asia Holdings Pte Ltd.
- Heather White, Documentary Filmmaker, “Who Pays the Price?”
- Yasuyuki Sugiura, President & CEO, Mitsubishi North America
- Simon Pryke, Chief Investment Officer, Newton Investment Management (UK)
- Rustom Desai, MBA ’95, Chief Executive Officer, Corning India
- Anne Miroux, Director, Division on Technology and Logistics, United Nations Conference on Trade and Development
- Christine Bader, Author, “The Evolution of a Corporate Idealist”
- Mari Amano, Secretary-General, Asian Productivity Organization
- Hemen Shah, Partner, 8 Miles LLP (via videoconference)
- Humberto Ribeiro, Visiting Scholar, Former Brazilian Secretary of Trade and Services
- Andrew Karolyi, Alumni Professor in Asset Management
2nd Annual Emerging Markets Roundtable
“Managing Government Relations in Emerging Markets” and “Succeeding Against Local Competition in Emerging Markets”, New York City, August 21, 2014
In cooperation with KPMG, the Institute held its second annual roundtable on August 21 with 35 participants. Leading the discussions were Lourdes Casanova, EMI Academic Director; Richard Coyle, EMI Executive Director, and Humberto Ribeiro, EMI Visiting Scholar and former Brazilian Secretary of Trade and Services. Excellent discussions took place about how to approach foreign governments, how to deal with corruption, reforms in the Brazilian government, finding local business partners, risk assessment and Chinese investment in Africa. Details can be found at: https://www.johnson.cornell.edu/Emerging-Markets-Institute/News-Events/Emerging-Markets-Roundtables/Emerging-Markets-Roundtable-2014.
III and IV Brazilian Conferences
The Emerging Markets Institute partnered with the Brazilian Students Association to organize two conferences on campus this academic year about Brazil: November 4 “Uncovering Challenges and Opportunities” and April 22 “Critical Reflections and New Perspectives”. Academic Director Lourdes Casanova was actively engaged in both events, and arranged participation for Visiting Scholar Humberto Ribeiro (former Brazilian Secretary of Commerce and Trade) and Marcus Troyjo (Director, BRICLab at Columbia University) as speakers.
4th Annual International Conference: “China, Reaching Out to the World”, New York City
On October 14, the Institute held its fourth international conference, which was focused on the increasing influence of the Chinese economy. The day-long event, “China—Reaching Out to the World: Global Investments and Partnerships,” drew a sellout crowd of more than 100 Cornell alumni and business professionals to the Cornell Club in New York City, and featured keynote addresses by Qingtong Zhou, VP Chief Strategy Officer of Lenovo, and Yuqiang Xiao, General Manager of Industrial and Commercial Bank of China Limited, New York Branch. Executive panels focused on the following:
- Chinese Investment in the United States, moderated by Erin Ennis, Vice President of US/China Business Council. Panelists included experts from Pricewaterhouse Coopers, Starr Strategic Partners, Rhodium Group
- Ensuring Sources of Natural Resources, moderated by Andrew Karolyi, Alumni Professor of Management, Professor of Finance, Johnson Graduate School of Management, Cornell University. Panelists included experts from The Eurasia Center and New York University, along with EMI Vising Scholar Humberto Luiz Ribeiro.
- Technological and Innovation Hubs, moderated by Victoria Lai, Economist and Editor of Economist Intelligence Unit China Service. Panelists included experts from the Organisation for Economic Co-operation and Development (OECD), Global Cloud Xchange, GE China.
- Competition and Cooperation: the new emerging MNCs, moderated by Lourdes Casanova, Academic Director of Emerging Markets Institutes. Panelists included experts from M&A Advisor, Agricultural Bank of China, Newman & Morrison, LLC.
The event received media coverage in Bloomberg and China Daily USA, and was additionally circulated via Twitter. At the conclusion, we announced that next year’s conference will focus on India.
Northeastern University, Center for Emerging Markets Sixth Annual Symposium, “Beyond the BRICs”
On June 2, Academic Director Lourdes Casanova, and Visiting Scholars Humberto Ribeiro and Chen Chen travelled to Northeastern University to speak at the Center for Emerging Markets annual conference under the theme, “Beyond the BRICs”. The conference focused on what was necessary for companies to enter the second tier of emerging markets. This represented the first of many planned collaborations between the Emerging Markets Institute at Johnson and Northeastern’s Center for Emerging Markets.
Fourth Symposium on Emerging Financial Markets: “China and Beyond”
Chazen Institute of International Business at Columbia University, New York City
On May 1 and 2, The Institute sponsored the Fourth Symposium on Emerging Financial Markets.
“China and Beyond”, held by the Chazen Institute of International Business at Columbia University. Academic Director Andrew Karolyi was a key organizer and participant, and Johnson Professor Warren Bailey presented a paper.
mai Bangkok Business Challenge @ Sasin

Over the past four years, the Emerging Markets Institute has sent three teams to participate in the mai Bangkok Business Challenge at Sasin Graduate Institute of Business Administration of Chulalongkorn University. Sasin was founded in 1982 as a joint venture of Chulalongkorn University, Kellogg School of Management at Northwestern University and the Wharton School of the University of Pennsylvania. This year, 48 teams from 18 countries submitted business plans for entrepreneurial ventures. 16 were selected to compete in Bangkok. The Emerging Markets Institute team proposed a company called UMA Bioseeds, which utilized supercharged enzymes to eliminate disease and pathogens from crop seeds, thus improving agricultural yields. After three days of pitching in several rounds before a panel of judges, UMA Bioseeds was declared the winner! More information about the win can be found at https://www.johnson.cornell.edu/Emerging-Markets-Institute/News-Events/Institute-at-Work-Detail/ArticleId/38817/The-Journey-to-Bangkok and https://www.johnson.cornell.edu/Emerging-Markets-Institute/News-Events/Institute-at-Work-Detail/ArticleId/39075/The-Emerging-Markets-Institute-interviews-the-2015-winning-team-from-the-mai-Bangkok-Business-Challenge-Sasin-1. The team’s participation was made possible by a generous donation from Roberto Canizares, BS ’71, MBA ’74, who also serves on the Emerging Markets Institute Advisory Board.
Advisory Board
The Institute is guided by our Advisory Board, which meets twice per year. This year we said “Goodbye” to Mark Hutchinson from GE China and added Scott Strazik, BS ‘00 from GE Power Generation Products, as well as Paul Kavuma, MBA ’93 from Catalyst Principal Partners in Kenya. They joined Mark Bissell, MBA’82 (Bissell Homecare, Inc.), Nell Cady-Kruse, BS ’84, MBA ’85 (Cady-Kruse Family Office), Roberto Canizares, BS ’71, MBA ’74, Rustom Desai, MBA ’95 (Corning India), Paul Galant, BS ’90 (Verifone), Mario Garnero (Brasilinvest Group), Felipe Garza Medina, MBA ’80 (Alpek), and Georges Ugeux (Galileo Global Advisors).
Staffing
Andrew Karolyi, one of the founders of the Emerging Markets Institute, stepped down as co-Academic Director in order to devote his energies to his responsibilities as Editor of the Review of Financial Studies, a prestigious academic journal. Richard Coyle, Executive Director, will also be leaving the Institute. Lourdes Casanova will continue as Academic Director.
We were fortunate to be joined this year by several visiting scholars: Sidney Costa from the University of Sao Paulo; Humberto Ribeiro, former Brazilian Secretary of Trade & Services, and Chen Chen from Tsinghua University. We also benefitted from research by Sukriti Jain, Samantha Rullan and Rebecca Derven.
Our administrative support is headed up by Andrea Sherwood, and was bolstered by the volunteer efforts of Lourdes Silvera and Subrina Shorna.
Funding
The Institute welcomes contributions from corporations, foundations, NGO’s and individuals to help fund the institute. Our corporate partners program can be found here:
https://www.johnson.cornell.edu/emerging-markets-institute/
We would like to acknowledge the generosity of Roberto Canizares, BS ’71, MBA ‘74 who recently provided an additional gift to the Institute.
For more information or to be added to our email distribution list (https://www.johnson.cornell.edu/emerging-markets-institute/), please contact:
Lourdes Casanova
Academic Director, Emerging Markets Institute, Samuel Curtis Johnson Graduate School of Management at Cornell University
248 Sage Hall, Ithaca, NY 14853 U.S.A.
Telephone: 607.254.1656
E-mail: lc683@cornell.edu,
OR
Andrea Sherwood
Institute Coordinator, Emerging Markets Institute, Samuel Curtis Johnson Graduate School of Management at Cornell University
248 Sage Hall, Ithaca, NY 14853 U.S. A.
Telephone: 607.255.0106
Email: als22@cornell.edu
Introduction
Established in 2010, the Emerging Markets Institute was founded at Cornell University’s Samuel Curtis Johnson Graduate School of Management to promote the research and study of emerging economies. The Institute provides a private forum for lively exchange among corporate leaders from emerging and developed markets and leading researchers. We are building a highly regarded academic program for the study of emerging markets—with the breadth, depth, and quality of education needed to effectively prepare business leaders for success.
The Institute would like to thank its partners, sponsors and donors which made this year possible. Specifically, the Inter American Development Bank, CEMEX, Citi, GE, Forum Das Americas, Better Brazil, Americas Society/Council of the Americas, BISSELL Homecare, Alternative Emerging Investor, Mark Bissell, MBA ’82, Nell Cady-Kruse, BS ’84, MBA ’85, Roberto Canizares, BS ’71, MBA ’74, James Morgan, BS ’60, MBA ’63, Bob Staley BME ’58, MBA ’59, and Al Suter, BME ’58, MBA’59.
We are pleased to present the results for the 2014 academic year according to our three founding pillars: Education, Research and Outreach.
Education
- The Institute recruited 26 students from the first year MBA class to become fellows. At the same time, 18 second year students graduated from the program. Emerging Market fellows take international coursework in finance, marketing, strategy and operations, plus a consulting practicum, and complete two study trips into emerging markets. At the completion of the program, they are ready to be deployed into the emerging markets, or take on a headquarters role with emerging market responsibilities. The fellows contributed 22 articles to the Johnson EMI website during the academic year on topics ranging from political upheaval in the Ukraine to reputation management for Chinese firms entering the United States marketplace.
- The Institute enjoyed a record number of students in the International Consulting Practicum, which is taught jointly by Johnson and the Indian Institute of Management at Bangalore. Consulting projects were undertaken for multi-nationals as well as start-ups, and included:
- A human resource strategy to retain female talent for a global investment bank in Africa.
- A review of the distribution network for a multi-national manufacturer of power generation equipment in China.
- A market entry strategy for a component manufacturer in the Baltic States, Middle East and Africa.
- A market expansion strategy for a U.S.-based financial services firm in Singapore and Malaysia.
- A plan to turn around a troubled division of a German headquartered firm with a global financial service.
- A Latin American acquisition strategy for a global manufacturer of veterinarian products.
- An Indian market expansion strategy for a global manufacturer of analytics software.
- An assessment of new markets for an Australian-based web service in the hospitality industry.
- A survey of international retirement products and regulations for an Australian-based bank.
- Johnson @ Cornell organized nine study trips to eleven foreign locations during the 2013-14 academic year. Over 200 students took advantage of study trips to Japan, Korea, Russia, Turkey, Bulgaria, Morocco, Brazil, Israel, Colombia, India, and the United Arab Emirates.
Research
- The Institute was able to announce three separate funds established for faculty research: The Emerging Markets Institute Fund, The Canizares Fund (made possible by Roberto Canizares, BS ’71, MBA ’74) and the Morgan Fund (made possible by James Morgan, BS ’60, MBA’63). Grants were awarded to:
- Srinagesh Gavirneni (Johnson @ Cornell), “Effectiveness of Human Newsvendors – Role of Cognitive Load, Cultural Attributes, and Contribution Margin”
- Roni Michaely (Johnson @ Cornell), Meijun Qian (NUS Business School) and Jian Zhang (NUS Business School), “Stock Liquidity and Dividend Policy, Evidence from a Natural Experiment”
- Ya-Ru Chen (Johnson @ Cornell), Hye Jung Yoon (?), “Toward a Distinction Between Assertive vs. Suppressive Dominance: A Cross-National Study of Status Attainment in the U.S., China, and South Korea
- Vithala Rao (Johnson @ Cornell), Jialie Chen (Johnson @ Cornell), and Hwang Kim (Johnson @ Cornell), “Spatial Network Effects on Salesforce Turnover and Customer Retention in the Chinese Insurance Industry”
- William Schmidt (Johnson @ Cornell), “Operational Volatility and Suppliers in Emerging Markets”
- David Ng (Dyson @ Cornell), “Impact Investing in Emerging Markets”
- One of our previous grants has led to awards. In the Spring of 2011, the Institute awarded a grant to Jim Detert and Sean Martin, both from Johnson@Cornell, to study “ Business and Behavioral Ethics in Developing Markets”. The results of the study evolved into Sean Martin’s Ph.D. dissertation, which won Notre Dame’s Mendoza College of Business Excellence in Ethics Best Dissertation Proposal Award, and the Duke COLE Center of Leadership and Ethics Best Dissertation Proposal Award. The dissertation was additionally nominated for the Organization Science Best Dissertation Proposal Award, and further evolved into a manuscript which is being evaluated for publication by the Academy of Management Journal.
- The Emerging Markets Institute is one of the lead organizers of The Third Symposium on Emerging Financial Markets, entitled “China and Beyond”. This symposium is intended to provide a platform for researchers to discuss fundamental research and policy issues related to emerging financial markets, and will be held in Beijing on July 5 & 6, 2014.
- The Institute Academic Director, Andrew Karolyi, spent part of his sabbatical as a Visiting Scholar with the International Monetary Fund in Washington, DC from September through December, 2013. While there, he conducted research on cross-border banking activity and macro-prudential regulation, a major new initiative of the IMF’s Research Department.
Faculty affiliated with the Emerging Markets Institute have presented their work in conferences, books, and papers throughout the year:
- Conferences:
- Casanova, L. 2014. Emerging Markets and Investment. The China Conference. Statler. Cornell University. 20 April 2014.
- Casanova, L. 2014. Global Latinas. World Economic Forum. Latin American Summit. 2 April 2014. Panama.
- Casanova, L. 2014. NAFTA, 20 years after. CLASS. Cornell University. 21 March 2014.
- Casanova, L. 2014. Emerging Multinationals from Latin America: Some findings and Research Challenges. Research Seminar. Research Seminar. Baruch College. CUNY. NYC.
- Casanova, L. 2014. Mexico in the International Arena. Mexico Rising: Convergencias. Yale University. New Haven. 22 February.
- Casanova, L. 2014. Emerging Multinationals from Latin America: Some findings and Research Challenges. Research Seminar. Emerging Markets Institute. School of Business D’Amore-McKim. Northeastern University. Boston. 31 January 2014.
- Casanova, L. 2013. Education in Mexico. The Economist Mexico Summit. The Next Chapter. 7 November 2013. Mexico city.
- Casanova, L. 2013. Innovation in Latin America. Latin America Conference. Johnson School of Business at Cornell University. Council of the Americas. Inter American Development Bank. 16 October 2013 at Council of the Americas. New York.
- Casanova, L. 2013. Changing Paradigm: Emerging multinationals and the new competitive landscape. Global Shapers meeting in San José Costa Rica via videoconference. 20 September 2013.
- Casanova, L. 2013. The Role of Business Schools in Driving Innovation in Emerging Economies. Innovation Ecosystems in Latin America. AACSB Latin America. 26 August 2013. Mexico DF.
- Karolyi, Andrew, 2014. American Economics Association (Philadelphia, PA), Erasmus University, Tilburg University (Netherlands), Bocconi University (Italy), University of Toronto, Fordham University, New York University, University of Illinois, SUNY Buffalo.
- Karolyi, Andrew, 2014. Keynote Address, Midwest Finance Association Conference (Orlando, Florida, March) on “Cracking the Emerging Markets Enigma”
- Karolyi, Andrew, 2014. Keynote Address, Australasian Banking and Finance Conference (Sydney, Australia, December) on Cracking the Emerging Markets Enigma”
- Karolyi, Andrew, 2014. Keynote Address, Financial Management Association Asia Conference (Tokyo, Japan, May) on “Cracking the Emerging Markets Enigma”
- Karolyi, Andrew, 2014. Keynote Address, 3rd ITAM Finance Conference (Mexico City, June) on “Cracking the Emerging Markets Enigma”
- Karolyi, Andrew, 2014. Keynote Address, 3rd Luxembourg Asset Management Summit (Luxembourg, November)
- Karolyi, Andrew, 2013. Cambridge Finance Group, Cambridge Judge Business School, London Business School, London School of Economics, Cass Business School at City University London, University of College Dublin FMC2 Conference, Université Géneve, EPFL/HEC Lausanne, Stockholm School of Economics, Copenhagen Business School, Warwick University, Imperial College London, Baruch College, International Monetary Fund, American University, George Washington, University, University of Texas at Austin.
- Karolyi, Andrew, 2013. Keynote Address, Cross-Border Capital Flows Working Group, Cass Business School, City University London (London, UK) on “State Capitalism’s Global Reach”
- Karolyi, Andrew, 2013. Summit on Responsible Investing, Cambridge Judge Business School (Cambridge, UK) on “Responsible exercise of ownership rights by investors: Reflections from corporations”
- Karolyi, Andrew, 2013. Dimensional Fund Advisors Investment Forum (London) “Forecasting Liquidity Black Holes”
- Karolyi, Andrew, 2013. Dimensional Fund Advisors Investment Forum (New York) “Forecasting Liquidity Black Holes”
- Books:
- Casanova, Lourdes S.; Kassum, Julian, 2014, The Political Economy of an Emerging Global Power: In Search of the Brazil Dream, Palgrave Macmillan.
- Karolyi, Andrew, (accepted), Cracking the Emerging Markets Enigma, Oxford University Press.
- Book Chapters:
- Dutta, Soumitra; Blosover, G.; Dutton, W. H.; Law, G., (accepted), China and the US in the New Internet World, in Society and the Internet, eds H. Grahm and W. H. Dutton, Oxford University Press.
- Published Papers:
- Bailey, Warren B.; Mao, Connie X; Sirodom, Kulpatra. “Locals, Foreigners, and Multi-market Trading of Equities: Evidence from Thailand” Pacific Basin Finance Journal 20.1 (2012): 101-121.
- Casanova, Lourdes S.; Pérez , Paloma Fernández . “Algunas claves de la longevidad de las grandes empresas familiares brasileñas” Apuntes: Revista de Ciencias Sociales (Notes, Social Science Journal) 39.70 (2012): 273-300.
- Dawande, Milind; Gavirneni, Nagesh; Mehrotra, Mili; Mookerjee, Vijay. “Efficient Distribution of Water Between Head-Reach and Tail-End Farms in Developing Countries” Manufacturing & Service Operations Management 15.2 (2013): 221 – 238.
- Yin, Cui; Chen, Lucy; Chen, Jian; Gavirneni, Nagesh; Wang, Qi. “Chinese Perspective on Newsvendor Bias: An Exploratory Note” Journal of Operations Management 31.1 – 2 (2013): 93 – 97.
- Doidge, Craig; Karolyi, Andrew; Stulz, Rene. “The U.S. left behind? Financial globalization and the rise of IPOs outside the U.S.” Journal of Financial Economics 110.3 (2013): 546-573.
- Sharma, Ashita Aggarwal; Rao, Vithala R.; Popli, Sapna. “Measurement of Consumer-Based Brand Equity for Indian Business Schools” Journal of Marketing for Higher Education 23.2 (2013): 175-203.
- Hiatt, Shon; Sine, Wesley David. “Clear and present danger: Political turmoil and the contingent nature of planning on entrepreneurial firm survival in Colombia” Strategic Management Journal (2013)
- Karolyi, Andrew; Ng, David; Prasad, Eswar;“The Coming Wave,” Finance & Development(International Monetary Fund), June 2013, 30-33.
- Accepted Papers:
- Karolyi, Andrew; Taboada, Alvaro; “Regulatory Arbitrage and Cross-border Bank Acquisitions Cornell University working paper, 2014. Formerly entitled: “The Influence of Governments in Cross-border Banking Mergers: Is it Really a ‘Race to the Bottom’?” Available at SSRN: http://ssrn.com/abstract=1573168, forthcoming Journal of Finance.
- Losada, M.; Casanova, Lourdes S.. “Internationalization of Emerging Multinationals: The Latin American case” European Business Review (Accepted)
- Shunko, Masha; Debo, Laurens; Gavirneni, Nagesh. “Transfer Pricing and Sourcing Strategies for Multinational Firms” Production and Operations Management (Accepted)
- Working Papers:
- Bailey, Warren B.; Zhao, Bin. “Familiarity, Convenience, and Commodity Money: Spanish and Mexican Silver Dollars in Qing and Republican China“
- Bailey, Warren B.; Liu, Edith. “Incorporation in Offshore Financial Centers: Naughty or Nice?”
- Casanova, Lourdes S.. “Bi-Regional Private Sector Networks. Harnessing the Potential of the Private Sector in European Union and Latin America”
- Casanova, Lourdes S.; Kassum, Julian. “Brazil in search of a model in social innovation”
- Casanova, Lourdes S.; Kassum, Julian. “Brazil in search of a role in the global stage”
- Casanova, Lourdes S.; Kassum, Julian. “Brazilian Emerging Multinationals, in search of a second wind”
- Casanova, Lourdes S.; Dumas, A.. “Corporate Social Responsibility and Latin American Multinationals“
- Casanova, Lourdes S.; Kassum, Julian. “From soft to hard power: in search of Brazil’s winning blend”
- Gomes, Dayse Azevedo; Campos Filho , Luiz Alberto N; Casanova, Lourdes S.. “Institutional influences on the Global CSR actions of Brazilian Mining Company Vale“
- Casanova, Lourdes S.; Aitziber, Elola. “International Strategy and its Redefinition in the Context of the Economic Crisis: Insights from a Study of Basque Firms“
- Casanova, Lourdes S.; Rodríguez-Montemayor, Eduardo. “The Bridge Model: The case of Spanish Multinationals building bridges between Asia and Latin America”
- Iankova, Elena A.. “Accession to the European Union and Institutional Design: The Europeanization of Post-Communist Tripartism”
- Iankova, Elena A.. “Capitalism by Design? Central and Eastern Europe’s Accession to the European Union”
- Iankova, Elena A.. “Converging with Europe? Central and Eastern Europe’s Return to Capitalism”
- Iankova, Elena A.. “Governed by Accession? Hard and Soft Pillars of Europeanization in Central and Eastern Europe”
- Iankova, Elena A.. “Multi-Level Bargaining Cartels in Periods of Transitions: On the Example of Bulgaria.” “Home Bias, An Academic Puzzle” Cornell University working paper, 2014. Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2153206.
- Karolyi, Andrew; “Size, Value, and Momentum in International Stock Returns: A Partial Segmentation Approach,” (with Ying Wu), Cornell University working paper, 2014. Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2043156.
- Karolyi, Andrew; “State Capitalism’s Global Reach: Evidence from Foreign Acquisitions by Sovereign Acquirers” (with Rose Liao), Cornell University working paper, 2014. Formerly entitled: “What is Different About Government-Controlled Acquirers in Cross-border Acquisitions?” Available at SSRN: http://ssrn.com/abstract=1571560.
- Karolyi, Andrew; “The Economic Consequences of the U.S. Supreme Court’s Morrison v. National Australia Bank Decision for Foreign Stocks Cross-listed in U.S. Markets,” (with Louis Gagnon), Cornell University working paper, 2014. Available at SSRN: http://ssrn.com/abstract=1961178.
- Khessina, Olga M.. “Entry Mode and Technological Change in the Worldwide Optical Disk Drive Industry“
- Khessina, Olga M.; Carlos, W. C.. “Firm Name Selection and Resource Acquisition in Late Imperial Russia, 1861-1913”
- Hiatt, Shon; Sine, Wesley David. “Manu Militari: New Venture Ties To Coercive Institutions In Emerging Economies”
- Major Grants Received:
- Karolyi, Andrew; Wu, Ying; INQUIRE-Europe Grant, 2013-2014, 10,000 for “Currency Risk and Size, Value, and Momentum Returns around the World”
- New Case Studies:
- Karolyi, Andrew; Cuiu, A.; Goyal, A.; Jin, V.; and Weng, T.; State Capitalism’s Global Reach: CNOOC Pursues Nexen”, Unpublished Cornell University case study December, 2012)
Outreach
- Third Annual Conference – The Institute held a successful conference in New York City in partnership with the Americas Society/Council of the Americas in their Manhattan headquarters. Titled, “Innovation in Latin America”, the conference featured a keynote address by Virun Rampersad, Managing Director and Head of Global Innovation, BNY Mellon who gave a talk on “Getting The Elephant to Dance – Creating an Innovative Culture in an Established Organization”. Opening address was given by Ambassador Sandra Fuentes-Berain, Mexican Consul General to New York, who highlighted investment opportunities in Mexico. Goldman Sachs, KPMG, EY, IBM, Inter-American Development Bank, Connect Bogota and the Americas Apparel Producers Network also contributed speakers. Other partners and sponsors included Better Brazil, Forum das Americas, Inter-American Development Bank, Financial Times and CEMEX.
- The Institute hosted a broad set of speakers during the year, including:
- Mark Hutchinson, President and CEO, GE China
- Beth Keck, Sr. Director, Corporate Affairs, Wal-Mart Stores, Inc.
- Roberto Perli, Partner, Policy Research, Cornerstone Macro
- Steve Maddox, Manager, Strategy & Operations, Mergers & Acquisitions and Alessandra Zielinski, Manager, Strategy & Operations, Service Operations, Deloitte
- Dr. Eswar Prasad – EMI Academic Fellow, Tolani Senior Professor of Trade Policy at Cornell University, and Senior Fellow at the Brookings Institution. Author of “The Dollar Trap: How the U.S. Dollar Tightened Its Grip on Global Finance”.
- Leora Klapper, Lead Economist in the Finance and Private Sector Research Team of the Development Research Group at the World Bank
- Fran Piscitelli, Former CEO Asia Pacific Region, Osram
- Surong Bulakul, MBA’80, CEO of PTT Group, Thailand
- H.E. Elena Poptodorova, Ambassador of Bulgaria to the United States
- H.E. Sandra Fuentes-Berain, Consul General of Mexico to New York
- Logan Cheek, AB ’60, Sr. Managing Director, Trailblazers Management and PV Partners
- Daniel Levites, Principal, EY Financial Services Advisory
- H.E. Karoly Dan, Consul General of Hungary to New York
- Tejendra Khanna, former Lt. Governor of Delhi
- Marshall Stocker, BS ’97, MBA ’99, VP, Portfolio Manager, Global Macro Equity Strategist Eaton Vance Investment Managers (via videoconference)
- Danil Kerimi, Director, Head of ICT Government Community, World Economic Forum USA
- In conjunction with the International Executive Resources Group, the Institute made a webinar on “Exploring Africa Trade” available to students.
- International Case Competition – Through the generosity of a gift from Roberto Canizares, BS ’71, MBA ’74, the Emerging Markets Institute sent a team of students to The mai Bangkok Business Challenge @ Sasin 2014. Juan Diego Alonso MBA ’14, Evan Moore MBA ’14, Stephanie Hsi MBA ’14, and Stephane Corgie, Cornell Post-Doc, presented a business plan for their company called Zymtronix, which used highly energized enzymes to destroy anti-biotics and germs in wastewater. Out of 44 competition submissions, Johnson placed in the final round among the six best teams.
- Practitioner Conferences – In addition to research conferences, the Emerging Markets Institute spoke at several practitioner conferences throughout the year, including the Council on Foreign Relations “Brazil Investment Day”, M&A Advisor 2014 International Financial Forum, and the Eurasia Center’s “Doing Business With the BRICS” conference.
- Student Grants – The Institute awarded 7 Cunningham grants to students travelling abroad. The fund was established in 1979 to “defray the expenses of travel abroad which will broaden the recipient’s knowledge of the world and increase the recipient’s understanding of other people and the way they live and think.” The fund is named for Foster S. Cunningham, College of Arts and Sciences ’54 and Johnson ’55, who died unexpectedly in 1978. The Institute also awarded grants from the Canizares Fund to three students who had summer internships in emerging markets, to help defray their expenses. The Canizares Fund was established in 2013 to encourage students to pursue internships in emerging markets.
Board of Advisors
We added two new members to our Board of Advisors this year. Roberto Canizares, BS ’71, MBA ’74, former President of MSA International, and Nell Cady Kruse, BS ’84, MBA ’85, former Chief Risk Officer, Standard Chartered Bank, Singapore have agreed to join. They will work with our other board members in advising the Institute:
- Mark Bissell, MBA ’82, Chairman & CEO, Bissell Homecare, Inc.
- Rustom Desai, MBA ’95, CEO, Corning India
- Paul Galant, BS ’90, CEO, Verifone
- Mario Garnero, Chairman, Brasilinvest Group
- Mark Hutchinson, President & CEO, GE China
- Felipe Garza Medina, MBA ’80, President PTA Business, Alpek (Alfa Group)
- Georges Ugeux, Chairman & CEO, Galileo Global Advisors
Staffing
Lourdes Casanova will be joining the Institute as an Academic Co-Director along with Andrew Karolyi as of July 1, 2014. Lourdes has been actively involved in the institute since arriving at Cornell in 2012, and has a strong interest in Latin American business. Andrew will be taking on additional duties as Editor of the Review of Financial Studies, a prestigious academic journal.
Funding
The Institute welcomes contributions from corporations, foundations, NGO’s and individuals to help fund the institute. Our corporate partners program can be found here: https://www.johnson.cornell.edu/emerging-markets-institute/. We would like to acknowledge the generosity of Peter Luerssen, MBA ’87 who has recently provided a gift to facilitate conferences on China and Brazil.
For more information or to be added to our email distribution list (https://www.johnson.cornell.edu/EMI), please contact:
Richard J. Coyle
Executive Director, Emerging Markets Institute
Suter/Staley Director of Global Business
Samuel Curtis Johnson Graduate School of Management at Cornell University
248 Sage Hall. Ithaca, NY 14853
Telephone: 607.255.9428
E-mail: rjc89@cornell.edu
The Emerging Markets Institute at Johnson continues to grow. We have enrolled more students, increased our research and expanded our outreach. We have graduated our first class of Emerging Market Fellows, and launched a first of its kind research portal. We have become sought out thought leaders on the role of emerging markets—and emerging market multinationals—in the global economy.
Below is an overview of our major accomplishments during the 2013 academic year:
Education
- In May we graduated our first class of emerging market fellows with 14 students having achieved the designation. We have a larger class following them, as 27 fellow candidates will now move up to second year status.
- Fellow candidates are required to complete a management practicum, which is a consulting assignment with a company in an emerging market. We partner with two other schools to help us in this endeavor: the Indian Institute of Management Bangalore and ESCP, a pan European business school. The students work in teams with members from each institution on global projects for client companies and have study trips to each school to learn about culture and business in the respective countries and region. Representative company projects completed by students in the practicum included:
- Developing a demand forecasting model for a global fiber optic cable manufacturer.
- Creating an Indian market entry strategy for a manufacturer of floor care appliances.
- Conducting a market assessment for new products for a leading manufacturer of kitchen appliances in India.
- Evaluating the launch of a web based service in Brazil for a global semiconductor chip manufacturer.
- A predictive model on solar demand was developed for a supplier of equipment to manufacture solar PV cells and modules. A variant of the model was presented to the Office of Science & Technology Policy at the White House.
- Study trips now include Brazil, Colombia, India, China, Europe, Turkey, Bulgaria, Israel, Ghana, Russia, Japan and Korea. We are exploring the addition of new trips to Dubai and Morocco for the spring of 2014.
- Brazil – Dr. Maria Tereza Alexandre
- Colombia – Dr. Wesley Sine
- India – Melvin Goldman
- China – Dr. Glen Dowell
- Europe – Dr. Elena Iankova
- Turkey and Bulgaria – Dr. Elena Iankova
- Israel – Dr. Ori Heffetz
- Ghana – Dr. Erik Simanis
- Russia – Dr. Elena Iankova
- Japan and Korea – Dr. Mark Milstein
- On the Johnson study trip to Ghana, students were featured on national television and met with the former President of the country, John Kufuor, as well as Kofi Annan, former Secretary-General of the United Nations.
- The Cornell/Queens Executive MBA Program opened new boardrooms in Monterrey, Mexico and Bogota, Colombia and plans additional growth in Latin America in the future.
- Johnson at Cornell was ranked number 10 in International Business by Bloomberg/Business Week in its annual survey of 82 international business schools.
Research
- Our third round of research grants were extended to faculty. Faculty scholars are now researching:
- Srinagesh Gavirneni (Johnson), Charles Vincent (Pontifica Universidad Catolica Peru) – “Evolution of Corporate Social Responsibility in Peru’s Mining Industry – A Longitudinal Analysis using Machine Learning”
- Sachin Gupta (Johnson), Shailendra P. Jain (University of Washington), Sanjiv Kakkar (EVP, Unilever Russia) – “Assessing the Market Performance of Sustainable Innovations in Developing and Developed Markets”
- This research will be added to the recipients of the second round of research grants from May of 2012. These projects are now nearing completion:
- Warren Bailey (Johnson), Wei Huang (University of Hawaii), Ghon Rhett (University of Hawaii), Zhishu Yang (Tsinghua University) – “What’s Different About Islamic Finance?
- Srinagesh Gavirneni (Johnson) – “Equitable Allocation of Surface Water in Indian Agriculture: Identification and Implementation of Effective and Practical Strategies”
- George P. Gao (Johnson), with Pengjie Gao (University of Notre Dame) and Yongxiang Wang (University of Southern California) – “Security Transaction Tax, Trading Behavior and Market Quality in China”
- The Institute has launched a web-based research portal to give faculty, students and corporate partners access to academic research on emerging markets topics. We are unaware of a similar research tool in any other institute. Other Johnson faculty research focusing on emerging markets this year includes the following.
- Published papers include:
- Campello, Murillo. “Contemporary Corporate Finance Research on South America,” Journal of Corporate Finance 18.4 (2012): 879-882
- Chen, Ya-Ru; Leung, Kwok; Chen, Chao C. “Bringing national culture to the table: Making a difference through cross-cultural differences and perspectives” The Academy of Management Annals 3 (2009): 217-249.
- Karolyi, Andrew; Lee, Kuan-Hui; Van Dijk, Mathijs. “Understanding Commonality in Liquidity around the World” Journal of Financial Economics 105.1 (2012): 82-112.
- Karolyi, Andrew. “Corporate Governance, Agency Problems and International Cross-Listings: A Defense of the Bonding Hypothesis” December 2012,Emerging Markets Review 13(4), 516-547.
- Karolyi, Andrew. “The Coming Wave,” (with David Ng and Eswar Prasad) Finance & Development (International Monetary Fund), June 2013, 30-33.
- Forthcoming papers include:
- Karolyi, Andrew. Cracking the Emerging Markets Enigma, Oxford University Press, forthcoming in 2014.
- Karolyi, Andrew; Doidge, Craig; Stulz René. “The U.S. Left Behind? Financial Globalization and the Rise of IPO Activity Around the World”, Cornell University working paper, 2012. Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1795423, forthcoming Journal of Financial Economics.
- Accepted papers include:
- Dawande, Milind; Gavirneni, Nagesh; Mehrotra, Mili; Mookerjee, Vijay. “Efficient Distribution of Water Between Head-Reach and Tail-End Farms in Developing Countries” Manufacturing & Service Operations Management (Accepted)
- Karolyi, Andrew. “Corporate Governance, Agency Problems and International Cross-Listings: A Defense of the Bonding Hypothesis” Emerging Markets Review (Accepted)
- Hiatt, Shon; Sine, Wesley David. “Clear and present danger: Political turmoil and the contingent nature of planning on entrepreneurial firm survival in Colombia” Strategic Management Journal (Accepted)
- Yin, Cui; Chen, Lucy; Chen, Jian; Gavirneni, Nagesh; Wang, Qi. “Chinese Perspective on Newsvendor Bias: An Exploratory Note” Journal of Operations Management (Accepted)
- Working papers include:
- Bailey, Warren B.; Zhao, Bin. “Familiarity, Convenience, and Commodity Money: Spanish and Mexican Silver Dollars in Qing and Republican China“
- Bailey, Warren B.; Zhou, Lanyue. “Does Managerial Hubris Affect Foreign Investment Decisions? Some Evidence on U.S. – China Joint Ventures”
- Casanova, Lourdes S.; Gradillas, M.; Hockerts, K.; Sloan, P.; Crone Jensen, E.. “An overview of CSR Practices: Response Benchmarking Report”
- Castro de Oliveira Lopes, Alberto; Campos Filho, L. A.N.; Casanova, Lourdes S.. “Dynamics of IORs: A case study of upstream partnerships of Petrobras“
- Casanova, Lourdes S.; Campos Filho, L. A.N.; Gonçalves, M.; Xavier, Jardim; Esteban do Valle, P. M.. “Institutional theory, membership in Business Groups and the Internationalization of Brazilian Multinationals“
- Martins Almeida, L. M.; Campos Filho, L. A.N.; Casanova, Lourdes S. “The Brazilian Institutional Environment: The Impact on Companies’ Strategies in the Oil and Gas Sector“
- Casanova, Lourdes S.. “Resources and Internationalization Strategies: The case of Latin American”
- Casanova, Lourdes S.; Dayton-Johnson, Jeff ; Fonstad, Nils Olaya ; Pitikäinen, Anna. “Innovation from emerging markets: the case of Latin America”
- Casanova, Lourdes S. “Multinational Strategies in Latin America: Comparing East Asian, European, and North American Multinationals”
- Casanova, Lourdes S.; Fraser, M. “From Multilatinas to Global Latinas“
- Casanova, Lourdes S.; Dumas, A.. “Corporate Social Responsibility and Latin American Multinationals“
- Casanova, Lourdes S. “Bi-Regional Private Sector Networks: Harnessing the Potential of the Private Sector in European Union and Latin America”
- Gupta, Sachin; Park, Sungho. “Combining Aggregate Sales Data with Survey Data to Model Demand: An Application to the South Korean Cigarette Market”
- Hiatt, Shon; Sine, Wesley David. “Have gun – will travel: the impact of military ties on new venture performance and political risk in Latin America”
- Karolyi, Andrew; Wang, Xinli. “Outbidding Competitors Worldwide: Imperfect Capital Markets, Exchange Rates, and Asset Sales”
- Karolyi, Andrew. “Regulatory Arbitrage and Cross-border Bank Acquisitions” (with Alvaro Taboada), Cornell University working paper, 2013. Formerly entitled: “The Influence of Governments in Cross-border Banking Mergers: Is it Really a ‘Race to the Bottom’?” Available at SSRN: http://ssrn.com/abstract=1573168 (Under review)
- Karolyi, Andrew. “Home Bias, An Academic Puzzle” Cornell University working paper, 2012. Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2153206 . (Under review)
- Karolyi, Andrew. “The Role of Investability Restrictions on Size, Value, and Momentum in International Stock Returns,” (with Ying Wu), Cornell University working paper, 2012. Available at SSRN: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2043156 . (Under review)
- Karolyi, Andrew. “State Capitalism’s Global Reach: Evidence from Foreign Acquisitions by Sovereign Acquirers” (with Rose Liao), Cornell University working paper, 2013. Formerly entitled: “What is Different About Government-Controlled Acquirers in Cross-border Acquisitions?” Available at SSRN: http://ssrn.com/abstract=1571560 .(Under review)
- Karolyi, Andrew. “The Economic Consequences of the U.S. Supreme Court’s Morrison v. National Australia Bank Decision for Foreign Stocks Cross-listed in U.S. Markets,” (with Louis Gagnon), Cornell University working paper, 2012. Available at SSRN: http://ssrn.com/abstract=1961178 .
- Tata, Ratan; Hart, Stuart L.; Sharma, Sanjay ; Sarkar, Christian . “The Next Great Transformation: How the Tata Group is Reinventing Business for the 21st Century”
Outreach
- The Institute opened the year with a high profile conference on Brazil at the Cornell Club in New York City. Headlining the conference was Humberto Luiz Ribeiro, Brazilian Secretary of Commerce and Services, and David Neeleman, Founder and CEO of Jet Blue Airlines. Additional speakers from Goldman Sachs, Citi, BNY Mellon, PricewaterhouseCoopers, Bain & Company, J.P. Morgan, Reckitt Benckiser, McLarty Associates, World Fund and Wal-Mart formed outstanding panels to discuss the potential of the Brazilian economy.
- The Institute continued its global speaker series with several high level speakers:
- Mark Hutchinson, President and CEO, GE China, who spoke on the growing need for management talent in China
- N.R. Narayana Murthy, Founder and Chairman Emeritus, Infosys Limited, who discussed the challenges of the global business process outsourcing industry
- Luis Carlos Sarmiento, Jr. CEO Grupo Aval (Durland Lecture), who outlined the complexities of the financial service industry in Colombia
- Giorgis Kaminis, Mayor of Athens, Greece, who described the difficulties which the Greek government is facing in the European financial crisis
- Professor Taotao Chen from the School of Economics & Management at Tsinghua University, P.R.China, who analyzed foreign direct investment flows into China
- Scott McHugh, former Vice President of International Asset Protection and Security, Wal-Mart Stores, Inc., who gave an overview of how ethics were incorporated into Wal-Mart’s business model
- Melissa Frakman, Sr. Manager, U.S./India Business Council, who explained how the council represented the needs of companies doing business in India
- Rodolfo Martell, Director and Portfolio Manager, BlackRock, Inc., who described how risk is assessed in emerging markets
- Andrew Jones, MBA ’05 Vice President, Equity Markets, Pinebridge Investments, who explained how emerging markets are now managed for growth
- Hillel Schuster, MBA ’96, Principal, Corporate Finance, KPMG Israel, (via videoconference) who gave us a perspective on doing business in Israel
- Cynthia Steer, Head of Manager Research & Investment Solutions, BNY Mellon, who identified trends in emerging market investing
- Armando Martinez, President and CEO, OCAM, who discussed a new model for generating organizational efficiencies
- Jeremy Prepscius, Vice President, Businesses for Social Responsibility, Hong Kong (via videoconference), who outlined how companies can use corporate social responsibility as an effective strategy
- Ajay Banga, President and CEO of Mastercard, who discussed the possibilities of a cash-less society
- Nick Warren, Development Director, First Quantum Minerals, who gave an overview of the mining industry in Africa
- Ron Shah, CEO of Jin Ventures and a Contributor to CNBC, who gave an overview of the private equity market in India
- Ambassador Thomas Hubbard, former U.S. Ambassador to Korea and Senior Director, Asia for McLarty Associates (via videoconference), who gave his assessment of current events in Korea and the implications for businesses
- Michael J. Woolfolk, Ph.D., Managing Director, BNY Mellon Global Markets (via videoconference), who gave his perspective on the European financial crisis and the future of the euro
- Jeff Peterson, MBA ’88, VP Strategic Development, Monsanto Corporation, who met with EMI fellows to discuss business issues in emerging markets
- Hon. Ricardo Martinelli, President of Panama, who gave an address with advice for students how to have successful careers and explored further cooperation with the Emerging Markets Institute
- In conjunction with the International Executive Resources Group, the Institute made the following webinars available to students:
- “Building Successful Business in China” by Jean-Claude Pierre, Executive VP of Rontec Technology
- “Growing in High Growth Markets – Middle East” by Ramesh Nuggihalli, General Manager & Managing Director, Tyco Gulf, Dubai, UAE
- “Investing in Korea: Strategic Issues for 2013 and Beyond” by Mark Barnes, Joon Kim, Daniel Joe and Sung Won Park, from KPMG Korea
- The Institute participated as a speaker at the 2012 Thomson Reuters Emerging Markets Investment and Compliance Forum, and the Business Insurance Risk Management Summit.
- We jointly released a survey of global Investor Relations practices in conjunction with BNY/Mellon. A joint research initiative is in progress to interpret the efficiency of global issuers’ strategies for capital markets.
- We jointly published a survey of the global food service business in conjunction with GLG Research. Emerging Markets are expected to experience moderate to significant growth.
- GE joined Citi and BISSELL Homecare as an EMI corporate partner.
- The Institute closed the year with a roundtable discussion in New York City on “Managing Risk in Emerging Markets” and “Building Public Private Partnerships”. The session gathered 30 practitioners with relevant expertise for an exchange of best practices and perspectives. The Dean attended the closing and offered his views on the future of Johnson and management education in general.
Board of Advisors
The Institute formed a Board of Advisors this year and seven global executives generously accepted roles to help guide our activities:
– Mark Bissell, MBA ’82, Chairman & CEO, Bissell Homecare, Inc.
– Rustom Desai, MBA ’95, CEO, Corning India
– Paul Galant, BS ’90, CEO, Citi Enterprise Payments
– Mario Garnero, Chairman, Brasilinvest Group
– Mark Hutchinson, President & CEO, GE China
– Felipe Garza Medina, MBA ’80, President PTA Business, Alpek (Alfa Group)
– Georges Ugeux, Chairman & CEO, Galileo Global Advisors
Financial Support
The Institute would like to recognize the generous gift from Rob Canizares, BS ’71, MBA ’74, who is sponsoring faculty research and student programming. This gift joins previous donations from Nell Cady-Kruse, BS ’84, MBA ’85 and Mark Bissell, MBA ’82 which have supported EMI operations, as well as an endowment from Bob Staley, BME ’58, MBA ‘59 and Al Suter, BME ’58, MBA’59, which helps to fund the Executive Director’s position. We thank all alumni who have generously given to help further our work.
For more information or to be added to our email distribution list, please contact:
Richard J. Coyle
Executive Director, Emerging Markets Institute
Suter/Staley Director of Global Business
Samuel Curtis Johnson Graduate School of Management at Cornell University
248 Sage Hall. Ithaca, NY 14853
Telephone: 607.255.9428
E-mail: rjc89@cornell.edu
The Emerging Markets Institute at Johnson is based on three pillars – education, research and outreach with the goal of becoming the premier business school for the study of emerging markets. We provide education and thought leadership on the role of emerging markets—and emerging market multinationals—in the global economy. During the last academic year, the institute has had a large impact with a small organization:
Education
- In November the emerging markets student fellows program was launched. The Fellow Candidates need to complete a rigorous program of academic coursework, an emerging markets management practicum and international study trips and/or emerging market exchange program. The program is designed to prepare students for careers in organizations in or with emerging markets. Sixteen fellows from the class of 2013 were accepted into the program. An additional six AMBA students were added to the program in July, bringing the class total to 22. A slightly larger group is planned for the class of 2014
- All Fellow Candidates accepted summer internships working on international projects, some in international locations.
- One international management consulting practicum course was added to the curriculum, a joint course with the Indian Institute of Management Bangalore joining our existing course with ESCP, a pan European business school. The students work in teams with members from each institution on global projects for client companies and have study trips to each school to learn about culture and business in the respective countries and region.
- Student-Company projects included:
- Developing a market entry strategy for a firm engaged in Wind Energy into India. Competitors were benchmarked, funding mechanisms were identified and sales channels were analyzed.
- Developing a differentiated market entry strategy for Photovoltaic manufacturing unit into India.
- Recommending strategies for growth in India, Sri Lanka and Bangladesh for a firm that manufactures product lifecycle management and automated production solutions for the sewn and flexible goods industries.
- Developing a market entry strategy for a French medical device company into Brazil.
- Recommending options to streamline a contracted network of call centers in Eastern Europe for a software vendor.
- Devising a way to increase market penetration in Mexico for a global chip manufacturer.
- Recommending methods of payment for expansion into emerging markets for a global software developer.
- Developing an African market entry strategy for mobile banking for a major French bank.
- Study trips have been expanded to include Brazil, in addition to Colombia, India, China, Eastern Europe, Turkey, Israel, Japan and Korea. A Ghana trip is being organized by an EMI Fellow Candidate for next year.
- Brazil – Dr. Maria Tereza Alexandre
- Colombia – Dr. Wesley Sine
- India – Melvin Goldman
- China – Dr. Glen Dowell
- Eastern Europe – Dr. Elena Iankova
- Turkey – Dr. Elena Iankova
- Israel – Dr. Ori Heffetz
- Japan and Korea – Dr. Mark Milstein
- Ghana – Dr. Erik Simanis
- Developed teaching cases in emerging markets finance for use in the curriculum covering:
- Public Financial Policy
- Capital Markets and Market Creation
- International Finance
- Corporate Policy
- Investment Management
- Investment Risk Assessment
- Emerging Markets Corporate Strategy
- Emerging Markets Corporate Governance
- Emerging Markets Marketing
- International M&A
- Students of the Emerging Markets Institute competed effectively in international case competitions. A team of AMBAs were selected as quarter-finalists in the National University of Singapore’s “Celebration 2011” competition, and another Johnson team made it into the final round in the mai Bangkok Business Challenge @ Sasin in Thailand.
Research
- The first grant program to encourage faculty research on emerging markets has initiated the following research efforts:
- James Detert and Sean Martin (both Johnson) – “ Business and Behavioral Ethics in Developing Markets”
- Vishal Narayan (Johnson), Vithala Rao (Johnson), and K Sudhir (Yale) – “ Competition between Organized and Traditional Retailers in Emerging Markets: A Household Level Analysis of Store Format Choices in India”
- Three more grants were awarded at the end of this academic year. These grants were awarded to the following faculty members:
- Warren Bailey (Johnson), Wei Huang (University of Hawaii), Ghon Rhett (University of Hawaii), Zhishu Yang (Tsinghua University) – “What’s Different About Islamic Finance”
- Srinagesh Gavirneni (Johnson) – “Equitable Allocation of Surface Water in Indian Agriculture: Identification and Implementation of Effective and Practical Strategies”
- George P. Gao (Johnson), with Pengjie Gao (University of Notre Dame) and Yongxiang Wang (University of Southern California) – “Security Transaction Tax, Trading Behavior and Market Quality in China”
- The Institute began the work to create a web-based research portal to give faculty, students and eventually our corporate partners, access to academic research on emerging markets topics.
- Faculty co-director, Andrew Karolyi, conducted research on barriers to U.S. investment in emerging markets which was cited extensively in an SEC report to Congress.
- The EMI initiated creation of an internet information hub for the emerging markets, with links to other web resources, a daily news feed from the Financial Times, and links to faculty research.Other faculty research this year includes:
- Bailey, Warren B.; Mao, Connie X; Sirodom, Kulpatra. “Locals, Foreigners, and Multi-market Trading of Equities: Evidence from Thailand” Pacific Basin Finance Journal 20.1 (2012): 101-121.
- Bailey, Warren B.; Huang , Wei ; Yang, Zhishu . “Bank Loans with Chinese Characteristics: Inside Debt, Firm Quality, and Market Response” Journal of Financial and Quantitative Analysis 46 (2011): 1795-1830.
- Hou, Kewei; Karolyi, Andrew; Kho, Bong-Chan. “What Factors Drive Global Stock Returns?” Review of Financial Studies 24.8 (2011): 2527-2574
- Casanova, Lourdes. “Innovation in Latin American emerging multinationals” The Economist Intelligence Unit Regional Overviews (2011)
- Casanova, Lourdes. “El ascenso de las multilatinas en la economía mundial” Información Comercial Española Revista de Economia 859 (2011): 21-31.
- Casanova, Lourdes. “La década dorada latinoamericana: las ‘global latinas’ llegan a occidente” Economía Exterior 59 (2011)
- Karolyi, Andrew; Lee, Kuan-Hui; Van Dijk, Mathijs. “Understanding Commonality in Liquidity around the World” Journal of Financial Economics 105.1: 82-112.
- Accepted papers include:
- Hiatt, Shon; Sine, Wesley David. “Clear and present danger: Political turmoil and the contingent nature of planning on entrepreneurial firm survival in Colombia” Strategic Management Journal
- New working papers include:
- Liao, Rose; Karolyi, Andrew. “What is Different About Government-Controlled Acquirers in Cross-border Acquisitions?”
- Hiatt, Shon; Sine, Wesley David. “Have gun – will travel: the impact of military ties on new venture performance and political risk in Latin America”
- Karolyi, Andrew; Taboada, Alvaro. “The Influence of Governments in Cross-border Banking Mergers”
- Doidge, Craig; Karolyi, Andrew; Stulz, Rene. “The U.S. Left Behind: The Rise of IPO Activity Around the World”
Outreach
- The Institute launched a global speaker series with several high level speakers:
- George Ugeux, CEO of Galileo Global Advisors, who spoke on the rise of multinational firms from emerging markets and the related challenges for global capital markets.
- John Quelch, DBA, Vice President and Dean of the China Europe International Business School, who discussed possible academic cooperation.
- Dr. Aleksey Shishayev, Senior Counselor, Head of Economic Office, The Embassy of the Russian Federation in the U.S.A., who discussed implications of Russian accession to the World Trade Organization.
- Cynthia Steer, Head of Manager Research and Investment Solutions for BNY Mellon Investment Management, who spoke on how events in developed nations impact emerging and frontier markets.
- David Steel, Executive Vice President of Strategy and Corporate Communications for Samsung North America, who spoke on “Lessons from Asia: Becoming a Global Technology Leader”.
- Ido Aharoni, Israeli Consul General in New York, who spoke to students who are planning a study trip to Israel about the government’s efforts to transform the country’s image.
- Benedict McTernan, Managing Editor of the Political Risk Services Group, who spoke to students on the Coplin – O’Leary Model of Risk Forecasting.
- Eduardo Padilla-Silva, CEO of OXXO Convenience stores, hosted jointly by the Latin Business Students Association, who spoke to students about how responsible business practices led to the quick growth of the OXXO chain.
- Armando Garza Sada, Chairman of Alfa, who discussed lessons learned from managing a multi-billion dollar conglomerate in Mexico.
- Dedric Yokley, former Manager of Global Risk Management at Mattel, who discussed unique risks in emerging markets.
- Jeff Peterson, Vice President of Strategic Management at Monsanto, who gave an in-depth case study to a class of students on the divestiture of its global sunflower seed business.
- The institute hosted a panel of Cornell scholars to discuss the potential global impacts of the European Financial Crisis.
- The institute joined the U.S./Russia Business Council, bringing a wealth of connections to the school.
- BISSELL Homecare, Inc. joined Citi as a corporate partner of the EMI.
Our momentum continues into the 2012-2013 academic year as we look forward to a new Dean and further development of our programs. Some scheduled activities include:
- Brazil: A Pathway into the Future, September 20, 2012 – Full day conference at the Cornell Club in NYC.
- Upcoming speakers in the Global Speaker Series include Mark Hutchinson, CEO of GE China and Ron Shah, Founder and Managing Partner of Jina Ventures, a private equity firm focused on India.
- Breakfast meetings between students and key emerging markets institute faculty to discuss research.