A note on the evaluation of long-run investment decisions using the sharpe ratio

This paper reexamines the use of the Sharpe ratio to measure the performance of large and small company stocks along with corporate bonds over different holding periods. It builds on previous research which cites the effects of serial correlation and non-normality in the creation of estimation error in the calculation of the Sharpe ratio. It finds that higher order moments such as skewness and kurtosis are a further source of error that must be accounted for when making inferences about asset performance.     

Toward a structural view of co-opetition in supply networks

Co-opetition, or simultaneous competition and cooperation, in the supply chain management literature has been treated as a dyadic relational phenomenon where the buyer's strategy is considered to be the primary driver. In this paper, we move beyond the dyadic view and propose a theory of co-opetition in supply networks. We argue that as firms within a supply network interact over time to access, share, and transform resources, new ties between firms are formed and existing ties dissolve, giving rise to co-opetition dynamics at the network level. Taking a configurational approach, we employ the inter-related dimensions of ties between firm, firm-level task, network-level objective, and governance to specify four practical supply network archetypes that cover a wide range of economic activities. We then explain how coopetitive relationships may evolve in these supply network archetypes. Specifically, we discuss how relationships form or dissolve in these archetypes and how local structural changes lead to co-opetition dynamics at the network level. We also discuss the implications of such dynamics from a managerial perspective.     

CHILD MENTAL HEALTH AND EDUCATIONAL ATTAINMENT: MULTIPLE OBSERVERS AND THE MEASUREMENT ERROR PROBLEM

We examine the effect of survey measurement error on the empirical relationship between child mental health and personal and family characteristics, and between child mental health and educational progress. Our contribution is to use unique UK survey data that contain (potentially biased) assessments of each child's mental state from three observers (parent, teacher and child), together with expert (quasi‐)diagnoses, using an assumption of optimal diagnostic behaviour to adjust for reporting bias. We use three alternative restrictions to identify the effect of mental disorders on educational progress. Maternal education and mental health, family income and major adverse life events are all significant in explaining child mental health, and child mental health is found to have a large influence on educational progress. Our preferred estimate is that a one‐standard‐deviation reduction in ‘true’ latent child mental health leads to a 2‐ to 5‐month loss in educational progress. We also find a strong tendency for observers to understate the problems of older children and adolescents compared to expert diagnosis. © 2015 The Authors. Journal of Applied Econometrics published by John Wiley & Sons, Ltd.     

Semi-quantitative risk assessment method for product management

The workshop presented a semi-quantitative risk assessment technique that can be used to judge the total risk on all undesired consequences/events for a product manufacturing operation. The technique requires an experienced team to judge risk utilizing a numerical rating system that, although arbitrarily chosen, is self consistent and provides a relative assessment of product manufacturing risk. Once calculated, the risk is compared to the product's net income for making risk management and product planning decisions. The workshop included an exercise where all participants could try the technique.     

The Economic Demography Transition: Is China's ‘Not Rich,First Old’ Circumstance a Barrier to Growth?

Around 1980 China adopted a reformist economic agenda and a restrictive population policy. China's consequential ‘getting old before rich’ discourse is herein advanced into the ‘economic demography transition’ and economic demography matrix (EDM). EDM transition analysis of 182 economies from 1996 to 2016 identifies: i) China to be one of many ‘poor‐old’ economies; and ii) a majority of countries recently entering the high‐income group were first old. These results question China's 1980 s‐based fears that early demographic transition would stall development and also call for enhanced nuance in understanding economic and demographic change links.     

Evaluating the newer salesperson

This article reports the results of an experiment examining the effect pattern of performance and information format have on sales managers performance appraisal.     

Export attitudes of industrial manufacturers

Small and medium-sized firms in three “high-tech” manufacturing industries were analyzed, in terms of their export attitudes and behavior, in order to provide beginning exporters and export promotion agencies with guidance to avenues of export success. Based on industry differences investigated, the study finds that managers in firms involved in exporting in each industry have similar attitudes toward international marketing opportunities, but that each industry exhibits different characteristics and strategies for exporting. Help is mainly needed in the areas of international communications and service delivery. The authors propose fewer government subsidies for export financing and more emphasis on encouraging joint ventures for service delivery purposes.