Do optimal diversification strategies outperform the 1/N strategy in U.K. stock returns?

This paper examines whether optimal diversification strategies outperform the 1/N strategy in U.K. stock returns. The study focuses on the performance of recent strategies developed by Tu and Zhou (2011) and Kirby and Ostdiek (2010). I find that a number of optimal asset allocation strategies can significantly outperform the 1/N strategy even after adjusting for trading costs. The strategies developed by Kirby and Ostdiek outperform the 1/N strategy, even at higher trading costs, due to the low turnover of these strategies. The strategies of Tu and Zhou have mixed performance after adjusting for trading costs due to the high turnover of these strategies. The results of the paper provide support for the use of optimal diversification strategies.     

Fluctuating levels of personal role engagement within the working day: A multilevel study

In this diary study, we examined a theoretical model in which the psychological conditions of meaningfulness, availability, and safety serve as mechanisms through which the work context during discrete situations within the workday influences “state” engagement. We further theorised that a person's “trait” level of engagement would exert cross‐level effects on the state level relationships. Multilevel analyses based on a sample of 124 individuals in six organisations and 1,446 situational observations revealed that meaningfulness and availability (but not safety) mediated the relationships between perceptions of the work context and state engagement. High levels of trait engagement strengthened the within‐person relation between availability and state engagement, yet weakened the within‐person relation between meaningfulness and state engagement, suggesting two different processes may be at play. Overall, the findings advance our understanding of engagement as a multilevel and temporally dynamic psychological phenomenon and promote a contextually based HRM approach to facilitating engagement.     

Internationalization of multi-source feedback systems: a six-country exploratory analysis of 360-degree feedback

In the past few years, few human resource practices have received as much attention as multi-source feedback systems (MSFSs). In the US and Canada, it is estimated that over one-third of organizations are using some form of MSFS and recent surveys show that this practice is still gaining popularity. Concurrently, a substantial amount of literature has focused on the effectiveness of this performance management practice. However, while few would dispute the popularity of MSFS, relatively little has been published on the use of these systems outside North America and thus little is known about their form and effectiveness in international contexts. This paper outlines the results of an international survey of MSFS. Interview data from HR managers and consultants from Argentina, Australia, China, Slovakia, Spain and the UK demonstrate that MSFS are being implemented, in slightly different ways, in each of these six countries. The main challenges in the application of MSFS in these various countries are the communication efforts necessary before and after implementation, and the inherent difficulty in giving and receiving feedback. The results of this study also provide data as to the perceived future of MSFS in each of the countries surveyed.     

An Examination of Alternative Factor Models in UK Stock Returns

This paper examines the mean-variance efficiency of a number offactor models in UK stock returns. The paper also explores, using theapproach of MacKinlay (1995), whether missing risk factors ornonrisk-based explanations best explain the pricing errors of thedifferent factor models. The evidence in the paper suggests that themean-variance efficiency of each factor model is rejected and missing riskfactors are unable to explain the pricing errors of any of the models.Some nonrisk-based explanations, which posit a wide spread in abnormalreturns, may be a more plausible source of explaining the pricing errorsof the factor models.     

The Relevance of the Fishbein Model to Insurance Buying

Consumer decision making is a much-researched area. This cannot be said of the more specific area of the insurance purchaser. This study explores the validity to insurance of Fishbein's ‘Theory of Reasoned Action’ model and examines the responses obtained in the elicitation stage, the first stage in the model's two-stage process. The authors consider some of the implications arising from the salient and normative beliefs extracted.