MULTIVARIATE VOLATILITY MODELING OF ELECTRICITY FUTURES

We model the dynamic volatility and correlation structure of electricity futures of the European Energy Exchange index. We use a new multiplicative dynamic conditional correlation (mDCC) model to separate long‐run from short‐run components. We allow for smooth changes in the unconditional volatilities and correlations through a multiplicative component that we estimate nonparametrically. For the short‐run dynamics, we use a GJR‐GARCH model for the conditional variances and augmented DCC models for the conditional correlations. We also introduce exogenous variables to account for congestion and delivery date effects in short‐term conditional variances. We find different correlation dynamics for long‐ and short‐term contracts and the new model achieves higher forecasting performance compared \to a standard DCC model. Copyright © 2012 John Wiley & Sons, Ltd.     

Commerce with a conscience: corporate control and academic investment

Corporations have been investing in academia to an extent that could be classified as a corporate takeover of universities. Intra‐university critics see this as an ethical problem, because of the degree of business control over university policies and decisions which accompanies the funding. University critics rarely suggest that the corporate funding be given up, returned, or even limited. What they protest against is corporate control, which they see as threatening university autonomy, and as inimical to the public good. Multi‐university conferences have been held focusing on this problem, and the most serious solution proposed thus far is to construct a relevant code of ethics regulating and limiting corporate involvement, through standards and guidelines which corporations will then have to subscribe to, in order to fund universities. However, there is a conflict of interest here. Universities have a public trust and a fiduciary duty not to compromise education. This implies a covenant not to cede power to outside interests, not to use university resources, or faculty and students, as a means to an educationally irrelevant end. Universities cannot sell out. However, it seems equally dishonest not to offer their students a well‐funded first‐rate, quality education in applied fields with current skills, maximum research opportunity, and the corporate ties that would allow them to obtain jobs. We examine three cases showing errors made by universities in ceding control to corporate investment, and draw some policy conclusions.     

Sexuality and holiday choices: conversations with gay and lesbian tourists

This paper is an exploratory investigation of the travel motivations of gay and lesbian tourists. Based on in-depth interviews and focus groups, it investigates the interrelationships between sexuality, tourism behaviour and tourism spaces. Given that public space is controlled and heterosexualized, the paper suggests that whilst gay and lesbian people are motivated to travel for a range of reasons, such is the power of the dominant heterosexual milieu that their sexuality has a critical impact on their tourism choices. The need for safety, to feel comfortable with like-minded people, and to escape from heterosexism – often to specifically gay spaces – emerge as key influences on their choice of holiday.     

A Natural Resource Scarcity Typology: Theoretical Foundations and Strategic Implications for Supply Chain Management

World population growth and increased consumption stemming from economic leveling are leading to scarcity of a number of natural resources on a global scale. Scarcity of critical natural resources such as oil, water, food, and precious metals has the potential to greatly impact commercial activity as the twenty‐first century progresses. The challenge of continuing to provide needed goods and services in the face of these constraints falls to supply chain managers, who are ultimately responsible for delivering utility to customers. Unfortunately, there has been almost no research focused on supply chain strategies aimed at mitigating natural resource scarcity’s (NRS) potential effects. The current research positions NRS as a supply chain risk and proposes an NRS typology based on key resource attributes. Supply chain mitigation strategies to counter each resource status are offered, with an overall objective of improving supply chain performance. The study recommends future research aimed at further developing theory and methods for countering NRS based on resource, systems and behavioral theories. In addition, this study has critical implications for practitioners faced with the growing threat of NRS in their supply chains.     

Do We Have a Redundant Set of Cost–Efficiency Targets in the NHS?

There has been a long history of hospital trust cost–efficiency targets being used in the National Health Service (NHS), but there is little evidence about whether they are effective in reducing hospital unit costs and reducing the dispersion of unit costs between trusts. In 1997, the new Labour government announced that it would replace the purchaser efficiency index with a new approach to securing cost–efficiency gains from trusts. Since 1999/2000 trust efficiency targets have been based on reference costs. This article presents evidence to suggest that efficiency targets have not been effective and that the new reference cost based system of targets is irrelevant. The efficiency gains that trusts seek to achieve are those that emerge from the purchaser funding formula and the contracting process.     

The role of competitive alternatives in the postchoice satisfaction formation process

A general model of satisfaction formation is proposed that extends the seminal disconfirmation of expectations model by explicitly incorporating the processing of both chosen and nonchosen alternatives. Using presidential election data, the results show that satisfaction with the nonchoice does remain salient in the determination of overall postchoice satisfaction. Disconfirmation related to either the chosen or the nonchosen alternative influences satisfaction with both the chosen and the nonchosen alternative. Overall, the model suggests that the nonchoice alternative may continue to be relevant in the satisfaction formation process. She received her Ph.D. from McGill University. Her work has appeared in theJournal of Marketing Research, Journal of the Academy of Marketing Science, International Journal of Research in Marketing, Decision Sciences, Journal of Macromarketing, and numerous other journals and conference proceedings. She is also coauthor of three books. She holds a Ph.D. in marketing from Michigan State University. Her work has appeared in theJournal of the Academy of Marketing Science; Journal of Business Research; International Journal of Research in Marketing; Journal of Services Marketing; Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior; and other journals and conference proceedings. Dr. Halstead was formerly an account executive with Needham Harper Worldwide and Director of Marketing and Media Services at Maxwell Advertising. Robert D. Mackoy received his Ph.D. from Michigan State University and is an assistant professor of marketing at Butler University. His research has appeared in theJournal of Retailing; Journal of Macromarketing; Journal of Services Marketing; Journal of Social Psychology; Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior; and the proceedings of the American Marketing Association, Association for Consumer Research, and Marketing and Public Policy conferences.     

Early internet IPOs versus subsequent entrants

This paper examines whether investors in early Internet IPOs earned superior returns to those who invested in later entrants. We document three differences between early public firms in a new Internet technology and their followers: underpricing, operating characteristics at the IPO, and stock price performance after the IPO. We find that there is value in going public relatively early in a new Internet technology. Specifically, long-term returns are significantly higher for the early entrants. We also find evidence, consistent with previous studies that examine hot IPO markets, that the early public firms have better operating characteristics at the IPO than later entrants.     

USING DIVIDEND POLICY AND MANAGERIAL OWNERSHIP TO REDUCE AGENCY COSTS

In this study we examine dividends and chief executive officer (CEO) stock ownership as interrelated mechanisms that may be used to reduce agency costs. We find a significant nonmonotonic relation between dividend yield and CEO stock ownership. Our evidence shows that until the CEO becomes entrenched, increased executive stock ownership reduces agency costs and decreases dividend yield. Beyond that point, increased stock ownership increases dividend yield. Whether additional stock ownership can reduce agency costs depends upon the CEO's degree of control in the firm.