The Role of Dividends, Debt and Board Structure in the Governance of Family Controlled Firms

Abstract:  We investigate whether family controlled firms use dividends, debt and board structure to exacerbate or mitigate agency problems between controlling and minority shareholders in a capital market environment with high investor protection and private benefits of control. Results indicate family controlled firms employ higher dividend payout ratios, higher debt levels and lower levels of board independence compared to non-family firms. This suggests family controlled firms use either dividends or debt as a substitute for independent directors. We also find that dividends and debt are more effective governance mechanisms in mitigating the families' expropriation of minority shareholders' wealth. Independent directors are, in contrast, more effective in controlling owner-manager conflict in non-family firms.     

Neural network approximation for superhedging prices

This article examines neural network-based approximations for the superhedging price process of a contingent claim in a discrete time market model. First we prove that the α-quantile hedging price converges to the superhedging price at time 0 for α tending to 1, and show that the α-quantile hedging price can be approximated by a neural network-based price. This provides a neural network-based approximation for the superhedging price at time 0 and also the superhedging strategy up to maturity. To obtain the superhedging price process for $t>0$, by using the Doob decomposition, it is sufficient to determine the process of consumption. We show that it can be approximated by the essential supremum over a set of neural networks. Finally, we present numerical results.     

The multifaceted impact of US trade policy on financial markets

We study the multifaceted effects of trade policy shocks on financial markets using a structural vector autoregression identified via event day heteroskedasticity. We find that restrictive US trade policy shocks affect US and international stock prices heterogeneously, but generally negatively. They increase market uncertainty, lower US interest rates, and lead to an appreciation of the US dollar. The effects are significant for several weeks or quarters. Decomposing the trade policy shocks further suggests that trade policy uncertainty dominates tariff level effects. Chinese trade policy shocks against the United States further hurt US stocks.     

Device-mediated customer behaviour on the internet: A systematic literature review

The proliferation of smartphones, tablets and other digital devices in addition to traditional computers has transformed the Internet into a device-mediated environment. While these devices provide immediate access to similar Internet sources, they differ significantly in their characteristics, such as screen size, operation mode and context of use. As a consequence, behaviours on the Internet along the customer journey vary substantially depending on the device used. To summarize the fast-growing body of research on device-mediated customer behaviour, a systematic, framework-based literature review of 59 articles from the last decade was conducted. Through an examination of the antecedents, decisions and outcomes investigated in the publications, the review presents a conceptual framework that highlights the relation between device characteristics, decision processes and behavioural outcomes. The review further summarizes the theories, contexts and methods employed in the studies and sets an extensive future research agenda. We found that the extant literature lacks comprehensive theories and clear definitions of digital devices in the omnichannel environment. Furthermore, existing findings should be generalized for other contexts (e.g. industries and countries) and validated via the introduction of other research designs and methods. The understanding of device-mediated behaviour and the consequently arising marketing measures remains scarce. Thus, this review advances the comprehension of customer behaviour on the Internet and provides researchers and practitioners with information on the implications for customer experience and omnichannel management.