Differences between bank employees' perceptions towards implications of electronic banking in Greece

This paper aims to identify both the Greek branch and the central division employees' perceptions towards implications of electronic banking adoption and explore whether there are any differences between them. To this end, based on 14 potential implications recognised in the literature review, a questionnaire was designed and completed by 613 bank employees. The analysis showed that perceptions vary in relation to respondents' working position. Additionally, there are indications that the identified differences are greater if they are linked with the respondents' working experience and educational qualifications, as well as the size of the financial institution. In conclusion, the paper discusses the strategic implications of the findings.     

Unbiased estimation of expected return using CAPM

Estimation of expected return is required for many financial decisions. For example, an estimate for cost of capital is required for capital budgeting and cost of equity estimates are needed for performance evaluation based on measures such as EVA. Estimates for expected return are often based on the Capital Asset Pricing Model (CAPM), which states that expected excess return (expected return minus the risk-free rate) is equal to the asset's sensitivity to the world market portfolio (β) times the risk premium on the “world market portfolio” (the market risk premium). Since the world market portfolio, by definition, contains all assets in the world, it is not observable. As a result, an estimate for expected return is commonly obtained by taking an estimate for β based on some index (as a proxy for the world market portfolio) and an estimate for the market risk premium based on a potentially different index and multiplying them together. In this paper, it is shown that this results in a biased estimate for expected return. This is undesirable since biased estimates lead to misallocation of funds and biased performance measures. It is also shown in this paper that the straightforward procedure suggested by Fama and MacBeth [J. Financ. Econ. 1 (1974) 43] results in an unbiased estimate for expected return. Further from the analysis done, it follows that, for an unbiased estimate, it does not matter what proxy is used, as long as it is used correctly an unbiased estimate for expected return results.     

Pensions and poverty traps: Is saving worthwhile for women?

Present policy means that a private pension, unless it is substantial, may fail to bring financial gain in retirement due to means testing: the pensions poverty trap. This paper examines women's acquisition of private (occupational and personal) pensions and their risk of facing this trap. Because of the loosening link between marriage and motherhood, previous patterns of pension advantage according to marital status are shifting. The employment and pension impact of motherhood varies with socio-economic status but the pension prospects of the majority of women are poor. It is concluded that women's need for financial advice to avoid the pensions poverty trap is greater than men's. An improved basic pension, indexed to national income, would reduce the risk of mis-selling and restore confidence that saving for a pension is worthwhile.     

Thought leadership in investment banking: The beginning of a new era

The paper argues that although considerations such as industry consolidation, the role of lending and the effects of technology are still important in shaping the future of investment banking, sustainable competitive advantage necessitates that emphasis is also placed on thought leadership. This entails quite a radical change in terms of the way in which the industry approaches the problem of competition and requires emphasis on value creation for all the constituent parts of the industry: corporations, investors, the banks themselves and research departments. Accordingly, the paper provides a rationale for this change and provides inter alia a range of examples to illustrate how thought leadership could lead to a fundamental change in the future of the investment banking industry.     

A play-the-winner-type urn design with reduced variability

We propose a new adaptive allocation rule, the drop-the-loser, that randomizes subjects in the course of a trial comparing treatments with dichotomous outcomes. The rule tends to assign more patients to better treatments with the same limiting proportion as the randomized play-the-winner rule. The new design has significantly less variable allocation proportion than the randomized play-the-winner rule. Decrease in variability translates into a gain in statistical power. For some values of success probabilities the drop-the-loser rule has a double advantage over conventional equal allocation in that it has better power and assigns more subjects to the better treatment. Acknowledgments. I thank Stephen Durham, the associate editor, and the referees for their helpful suggestions.