The styles of management inventory: A methodological analysis of a training and research instrument

In recent years several theoretical ideas have been advanced in the area of problem-solving and decision-making in administration, with a focus on “leadership” styles. Instruments have been designed to operationalize the theory and for purposes of training and research. However, there has been little systematic testing of such instruments. This study examines the theoretical underpinning of one particular instrument, the Styles of Management Inventory. Then, it proceeds to test it for internal consistency by using multidimensional scaling. The data for this study were obtained from 288 probation administrators in the United States. Since this instrument is currently used by trainers and researchers, it is felt that this methodological study has important implications for both the management training and research fields.     

Sustainability dimensions related to agricultural-based development: the experience of 50 years of intensive farming in Almería (Spain)

In the context of the current agri-food market, several factors have made it increasingly difficult to balance the components of sustainability in agricultural-based development. These factors include increasing internationalization, tighter control of distribution and frequent changes in agricultural policies. Indeed, in the framework of European rural policy there has been considerable debate in recent years concerning the role of the agricultural sector and how it should face the following challenges: productivity-competitiveness, environmental protection and socio-economic development. There is, therefore, a growing need for practical analyses that adopt a holistic approach. This paper analyses how this sector in the province of Almería (Spain), based on horticultural family farms, has risen to the above issues over recent decades. This case study provides some insights into the different trade-offs and synergies between sustainability dimensions. In particular, the integration of ecological, social and economic components may prove useful in helping other regions to adapt their agricultural systems, especially where these are characterized by small-scale farming.     

Portfolio choices and VaR constraint with a defaultable asset

We consider a Constant Elasticity of Variance (CEV) model for the asset price of a defaultable asset showing the so-called leverage effect (high volatility when the asset price is low). We show that a VaR constraint re-evaluated over time induces an agent more risk averse than a logarithmic utility to take more risk than in the unconstrained setting.     

Economic feasibility analysis for electrical generation from biogas in waste disposal sites in Mexico City

This article highlights the main aspects related to energy generation from biogas in a controlled landfill of Mexico City in order to determine profits and environmental benefits. The designed structures and public policies to provide waste management services in Mexico City have been exceeded. A significant increase in demand has led the government of Mexico City to base public services on rudimentary techniques using obsolete equipment. The modernization of waste disposal facilities and the diversification of services linked to waste treatment can offer several business opportunities to optimize energy generation from solid wastes. The use of landfills to dispose large amounts of waste enables the energy generation from biogas. The energy generated can diversify the electricity market and provide economic benefits to landfills managers to cover operational costs.     

The value of an educated population for an individual's entrepreneurship success

Human capital obtained through education has been shown to be one of the strongest drivers of entrepreneurship performance. The entrepreneur's human capital, though, is only one of the input factors into the production process of her venture. In this paper we will analyze to what extent the education levels of other (potential) stakeholders affect the entrepreneur's performance. The education level of consumers may shape the demand function for an entrepreneur's output, whereas the education level of employees may affect the entrepreneur's productivity and thereby shape her supply function. Based on this, we hypothesize that the performance of an entrepreneur is not only affected positively by her own education level but also by the education level of the population. We find empirical support for this hypothesis using an eight year (1994–2001) panel of labor market participants in the EU-15 countries. An implication of our finding is that entrepreneurship and higher education policies should be considered in tandem with each other.     

Risk Management in Small- and Medium-Sized Businesses and How Accountants Contribute*

We investigate how owners of small- and medium-sized enterprises (SMEs) perceive, make sense of, and practice risk management. Drawing on Schatzki's practice theory, we theorize on how and why risk management happens in SMEs. Thus, we fill a gap in the extant literature, which focuses almost exclusively on risk management within large organizations. We interview entrepreneurs and conduct site observations to gain insight into their risk management activities, the drivers that lead to the adoption of said activities, their attitudes toward risk management, and how their accountants may shape and contribute to risk management in SMEs. We find that rather than a specific set of formal processes, entrepreneurs view risk management as a mindset that emphasizes the preservation of key assets, creation of competitive advantages, and development of local talent and expertise. We observe practices that are mainly informal yet planned, deliberate, and fully integrated within the fabric of organizations that align with ideal forms of risk management. We also find that full-time, in-house accountants do help entrepreneurs with risk management, while external accountants, whose main activities relate to financial statement preparation and tax filings, do not systematically help entrepreneurs manage risk. We contribute to both the theory and practice of risk management by sharing empirical insights into how SME owners perceive, make sense of, and manage risk.     

Construction of voting situations concordant with ranking patterns

Decisions in Economics and Finance - Referring to a standard context of voting theory, and to the classic notion of voting situation, here we show that it is possible to observe any arbitrary set...     

A flexible lattice framework for valuing options on assets paying discrete dividends and variable annuities embedding GMWB riders

In a market where a stochastic interest rate component characterizes asset dynamics, we propose a flexible lattice framework to evaluate and manage options on equities paying discrete dividends and variable annuities presenting some provisions, like a guaranteed minimum withdrawal benefit. The framework is flexible in that it allows to combine financial and demographic risk, to embed in the contract early exercise features, and to choose the dynamics for interest rates and traded assets. A computational problem arises when each dividend (when valuing an option) or withdrawal (when valuing a variable annuity) is paid, because the lattice lacks its recombining structure. The proposed model overcomes this problem associating with each node of the lattice a set of representative values of the underlying asset (when valuing an option) or of the personal subaccount (when valuing a variable annuity) chosen among all the possible ones realized at that node. Extensive numerical experiments confirm the model accuracy and efficiency.