My journey through finance and stochastics

This year, Finance and Stochastics celebrates its 25th anniversary. The journal provides a platform for the community of researchers on which they can publish their ideas and results.

Publication is an outcome of research which may be conducted for a number of years before it reaches the required maturity. I find this research process to be very important. Unfortunately, it is almost impossible to decode it from reading the research publications. This special issue of Finance and Stochastics gives me an opportunity to focus on it. I am grateful I can present my personal memory of this process. Understanding why questions are asked and how the answers are found is critical.

     

The great margin call: The role of leverage in the 1929 Wall Street crash

The reasons for the 1929 Wall Street crash and why it occurred at the particular time that it did are still debated among economic historians. We contribute to this debate by building on a new model, which provides a measure of the financial system's potential for financial crises. The evidence suggests that a tightening of margin requirements in the first nine months of 1929 combined with price declines in September and early October caused enough investors to become constrained that the market was tipped into instability, triggering the sudden crash of October and November.     

Exploring fundraising executives' careers in arts and culture: The role of tenure and career switching

Fundraisers play a crucial role in helping arts and culture organizations obtain the financial resources they need to carry out their missions and support their causes. However, research on fundraisers' careers is still in its infancy. As the profession gains importance, understanding the main motivating factors of fundraisers' career paths is key. This study investigates the effects of three variables that emerged as relevant motivations for fundraiser careers, that is, education, career promotion and sector experience, on fundraising executives' tenure and career switching. In addition, this research identifies profiles of fundraising executives in the arts and culture organizations in the United States. Moreover, this study explores the role of non-profit orientation as a moderator of the relationship between career switching and tenure, and parallel titles as a moderator of the relationship between sector experience and tenure. Managerial implications are outlined.     

Platform capitalism and neo-normative control: “Autonomy” as a digital platform control strategy in neoliberal Chile

A key element of the platform business model is concentrating great organisational power over the work process while simultaneously allowing workers certain degrees of autonomy and encouraging them to see themselves as self-employed. This study applied the neo-normative control concept to analyse the mechanisms platforms use to promote freedom of choice and self-regulation values, which are formed extra-organisationally in deeply neoliberal societies such as Chile. The Uber ride-hailing and Pedidos Ya home delivery platforms in Chile were examined using a labour process theory framework based on an ethnographic design. The results show the specific ways in which these platforms deploy forms of neo-normative control, how this deployment is anchored in the labour context of neoliberal Chilean society, and how workers re-signify, stress, or seek to subvert this control strategy. The findings' theoretical and empirical implications are discussed.     

The social contract of work: Moving beyond the psychological contract

This paper develops the critique of psychologisation by going narrow and deep into the analysis of the concept of the psychological contract. In its early incarnation, the psychological contract literature explored key elements at the heart of the employment relationship. However, in the current mainstream psychological contract literature, there are four key problems. The paper shows that these problems match on to the wider problems associated with pyschologisation. The concept of the social contract of work is put forward as a way to return productively to the original focus of the field. The social contract of work is defined as workers' implicit, collective, and socially embedded understanding of the effort bargain at work.