Assessing the validity of the Delphi technique

Forecasting is an essential factor in policy formulation and planning. It helps determine the direction of future actions. While a number of forecasting techniques are utilized to forecast the future, it is important to know just how valid those forecasting techniques can be. The Delphi technique has been called the ‘cornerstone of futures research’. This study reports the results of the assessment of the accuracy of the forecasts derived from the Delphi technique. Twenty-five experts in the communication field assessed 24 trends and 17 events in the state of Hawaii as of 1991. The expert assessments were then compared with the forecasts made by utilizing the Delphi technique 16 years earlier. The results showed that the trend forecasts were significantly correlated with the trend assessment. They also showed that the Delphi technique had accurately forecast approximately half the events that could be evaluated as of 1991. Results from this study lend support to the use of the Delphi technique in long-range forecasting and reveal some interesting findings in forecasting the developments in communication in Hawaii.     

Trends of change across the Taiwan Strait towards 2020

This paper forecasts the futures across the Taiwan Strait in the first two decades of the century. Data were collected utilizing the Delphi survey process with 18 Taiwanese experts in 1999. Eleven of the participants are scholars engaging in China studies, and the remaining seven are government officials handling Chinese mainland affairs. The results indicate that 32 scenarios are forthcoming across the Strait from 2001 to 2010 and 24 will appear from 2011 to 2020. After data reduction, the first decade is denoted by nine prospects and the second decade involves six futures. All these outlooks agreeably indicate a trend of peaceful evolution.     

The nature and value of futures studies or do futures have a future?

The paper discusses the necessity for futures studies and argues the need for methods giving explicable understandings of future possibilities so that decisions and policies can be as future-proof as possible. A taxonomy for futures methodologies based on their passive, preventive or anticipatory characteristics is proposed. The anticipatory methodologies are further categorised into subjective and numerical approaches. The paper goes on to review some of the principal numerical approaches such as system dynamics and econometric methods. The subjective approaches, such as the extended scenario, Delphi and Field Anomaly Relaxation are considered and it is concluded that, in general, they, and especially Field Anomaly Relaxation, are the more fruitful line of attack on the futures problem. Some directions for further research are suggested.     

Price-Formation Process of an Emerging Futures Market: Call Auction Versus Continuous Auction

This study assesses the market qualities of alternative price-formation processes for an emerging futures market—the Taiwan futures market. In 2002, the price formation process in the market changed during the period of trade between call auction and continuous auction. The performances of call auction and continuous auction are compared using intraday data. Empirical results show that the market is more liquid, and volatility is slightly lower, under continuous auction than under call auction. Also, there is robust evidence that continuous auction improves informative efficiency. The study suggests that for an emerging futures market like that of Taiwan, continuous auction offers a better trading environment for futures trading. In addition to demonstrating the virtue of continuous auction, this study also finds that the asymmetry in volatility is related to the price formation process. The asymmetry effect exists under continuous auction, but not under call auction.     

Futures studies: From individual to social capacity

Futures study is not yet well established at the social level. Given the unstable conditions of the late 20th century, and the challenging outlook of the early 21st, this is a serious oversight. The article considers how futures studies can be progressively developed through five distinct layers, or levels. First is the natural capacity of the human brain/mind system to envisage a range of futures. Second, is the clarifying, enlivening and motivating role of futures concepts and ideas. Third are analytic gains provided by futures tools and methods. Fourth are a range of practical and intellectual applications, or contexts. When each of these levels functions in a coordinated way, grounds for the emergence of futures studies at the social level can clearly be seen. The article concludes with a brief summary of a preferred future which would arguably be within reach if futures studies were to progress along such a path from individual to social capacity.     

Corporate ethical futures: responsibility for the shadow on the future of today's ethical corporations

Humankind needs protection from the actions of corporations, which have an effect in time and space beyond the boundaries that they attend to in their day-to-day business decisions or their regulatory duties. A combination of an ethical orientation with a futures orientation gives rise to ethical futures, which produces a more developed and robust moral code for corporate organisations. In a pilot study of the current corporate social responsibility reports of five corporate organisations, a tentative qualitative relationship was found between the futures orientation of these corporations and their (BITC) corporate social responsibility index rating. Enforcing corporate ethical futures should become an imperative for stakeholders.     

Combining quantitative and qualitative research methods to foresee the changes in the Finnish agri-food sector

This paper focuses on the benefit of using two different research methods interactively, namely the Global Trade Analysis Project (GTAP) model and Delphi method. This is relevant in the current discussion in futures studies to integrate quantitative research methods with qualitative research methods. This undertaking is intended to improve and increase the depth of the knowledge base needed in decision making. We present examples on how this can be achieved and evaluate the strength and weaknesses of each method. We also discuss the benefits of combining both methods by confronting the weaknesses of the methods with the strengths of each method.     

Price dynamics in refined petroleum spot and futures markets

This article characterizes the spot and futures price dynamics of two important physical commodities, gasoline and heating oil. Using a non-linear error correction model with time-varying volatility, we demonstrate many new results. Specifically, the convergence of spot and futures prices is asymmetric, non-linear, and volatility inducing. Moreover, spreads between spot and futures prices explain virtually all spot return volatility innovations for these two commodities, and spot returns are more volatile when spot prices exceed futures prices than when the reverse is true. Furthermore, there are volatility spillovers from futures to spot markets (but not the reverse), futures volatility shocks are more persistent than spot volatility shocks, and the convergence of spot and futures prices is asymmetric and non-linear. These results have important implications. In particular, since the theory of storage implies that spreasd vary with fundamental supply and demand factors, the strong relation between spreads and volatility suggests that these fundamentals — rather than trading induced noise — are the primary determinants of spot price volatility. The volatility spillovers, differences in volatility persistence, and lead-lag relations are consistent with the view that the futures market is the primary locus of informed trading in refined petroleum product markets. Finally, our finding that error correction processes may be non-linear, asymmetric, and volatility inducing suggests that traditional approaches to the study of time series dynamics of variables that follow a common stochastic trend that ignore these complexities may be mis-specified.     

LARGE BANK STOCKHOLDERS IN GERMANY: SAVIORS OR SUBSTITUTES?

This article challenges Mark Roe's suggestion that the prevalence of the widely held public corporation in the U.S. may not have been inevitable because U.S. laws prevented financial institutions from playing the monitoring role assumed by large German banks. The differences between Germany and the U.S. in the importance of trading markets and the role of banks as monitors can be explained in large part by actions of German banks that blocked the development of German capital markets and provided big banks with informational advantages over other traders.
Markets are likely to be more effective monitors than large banks because of the banks' conflicts of interest as creditors as well as underwriters and market-makers for German firms. Moreover, there is more diversity in the ownership structure of U.S. corporations than the current governance debate would suggest. In the U.S. there are many publicly owned companies that are either closely held or have reverted to private ownership through LBOs. This in turn suggests that U.S. capital markets have devised means for bringing about concentrated stock ownership in those cases where large stockholder monitoring is likely to be more efficient.
Thus, to the question what is likely to happen to U.S. corporate ownership structure if remaining legal constraints on stock ownership by U.S. banks are relaxed, the answer this article offers is "not much." Indeed, if one considers increasing U.S. institutional ownership together with recent SEC attempts to liberalize shareholder communications, there appears to be a striking trend toward a new concentration of voting power–one that may ultimately rival that of the German banks.     

The future of foresight professionals: Results from a global Delphi study

How will foresight practice evolve into the next decade and beyond? How might its supply and demand factors self-organize? In 2012 a real-time Delphi study, entitled, “The Certification of Professional Futurists 2030,” was conducted among 142 experts from 29 countries to debate the forces that might diminish or enhance futures work. The study consisted of 14 projections out to the year 2030, ranging from whether the global futures field might “employ a viable form of certification for professional futurists,” to whether it might “share a common accepted understanding of futures assumptions, theory, methods, knowledge, and ethics.” Panelists identified themselves with various futures associations. This article presents the findings, including where there is dissent and consensus in the futures field over the likelihood, impact and desirability of the professionalization of its practice. Further scale development using factor analysis, ordered by the theory of competitive advantage, produced a scenario model of three market forces: assimilation, academicisation, or certification. The third force of professional certification by 2030 was deemed least likely and less desirable. This wide ranging survey therefore offers the futures field a common conversation protocol to rethink how it might redesign its value chain and differentiate itself against other professions.     

Health trend assessment in Indonesia Futures studies at the provincial level

Health trend assessment studies have been carried out in Indonesia at the national and provincial levels, to provide input into long-term national development plans and to build up the capacity for local health planning in anticipation of decentralization. Provincial health trend assessment studies have been done in five provinces by teams from local health and planning authorities and the local school of public health. These provincial teams have all used background documents and standard procedures developed by a national team and have gone through the same methodological training. Out of the experience have come specific ideas about how trend assessment and similar activities can be strengthened. Among the recommendations are the establishment of national research centres for trend analysis, efforts to improve availability and reliability of relevant data, the training of a cadre of health professionals familiar with futures methods, and continued promotion by WHO and other agencies of long-term health planning and health futures.     

Multivariate continuous-time modeling of wind indexes and hedging of wind risk

With the introduction of the exchange-traded German wind power futures, opportunities for German wind power producers to hedge their volumetric risk are present. We propose two continuous-time multivariate models for wind power utilization at different wind sites, and discuss the properties and estimation procedures for the models. Applying the models to wind index data for wind sites in Germany and the underlying wind index of exchange-traded wind power futures contracts, the estimation results of both models suggest that they capture key statistical features of the data. We show how these models can be used to find optimal hedging strategies using exchange-traded wind power futures for the owner of a portfolio of so-called tailor-made wind power futures. Both in-sample and out-of-sample hedging scenarios are considered, and, in both cases, significant variance reductions are achieved. Additionally, the risk premium of the German wind power futures is analysed, leading to an indication of the risk premium of tailor-made wind power futures.     

Profitability of alternative methods of combining the signals from technical trading systems

Past efforts determining the profitability of technical analysis reached varied conclusions. We test the profitability of a composite prediction that uses buy and sell signals from technical indicators as inputs. Both machine learning methods, like neural networks, and statistical methods, like logistic regression, are used to get predictions. Inputs are signals from trend‐following and mean‐reversal technical indicators in addition to the variance of prices. Four representative commodities from agricultural, livestock, financial, and foreign exchange futures markets are selected to determine profitability. Special care is taken to avoid data snooping error. Both neural networks and statistical methods did not show consistent profitability.     

Futures studies as a civilizational catalyst

By the early 21st century, Futures Studies (FS) had developed into a globe-spanning meta-discipline with a range of methodologies, a rich literature and a substantial knowledge base. A small, but growing, number of universities around the world provided advanced degrees in FS. Yet, in spite of the wide use of futures methods such as the Delphi technique, trend analysis and scenario planning in pursuit of corporate strategies, substantive futures perspectives focused on long-range civilizational concerns remained underdeveloped or absent within most organizations and environments. This paper considers the rise of FS during the 20th century, some implications for FS of what I have called the ‘civilizational challenge’ and a number of strategies that may be used to increase the take-up and effectiveness of futures work over coming decades. The paper takes the view that the ultimate goal of FS at this time is to help create the foundations of a new civilization.     

Futures studies as social science: An analytic scheme and a case study

Several authors in the futures studies field have in their efforts to improve quality argued that better methods must be developed, which makes sense. But the theoretical awareness in the substantive questions upon which the studies are based is probably more important.

In that light, the primary objective of this article is to formulate a method of how fundamental social issues (views on society and humanity) are addressed in a future study, apply it to one empirical case (telecommunications company Ericsson) and thereafter analyze the method's strengths and weaknesses.

The study shows that the method gained a satisfactory foothold in the material and it has an appropriate depth in relation to desired efficiency. This work has shown that the analytical method is relevant and adequate to understand and describe the orientation and contents of futures studies. Therewith, the study has generated greater awareness of fundamental assumptions in future studies that can contribute to enhancing their quality.     

A systemic evaluation framework for futures research

Evaluation of futures studies is a topic that has frequently aroused discussion. Futures studies often deal with great societal or strategic business issues, and thus the validity and reliability of the results is of great interest to stakeholders. Existing literature contains discussions of such important issues as ethics of futures studies, the nature of knowledge about the future, and futures methodology, which together contribute to the quality, validity and credibility of futures studies, but discussion on the evaluation of futures studies is more scant.Thus, the main research question that guides our study is: “how should we evaluate futures studies to ensure the reliability and credibility of the results?” We answer the question by deriving a systemic framework for evaluation following the input-process-output schema to ensure that the whole chain from the data to reporting and implementation contributes to the quality and impact of the study.The main contribution is the systemic evaluation framework. The framework will contribute to the evaluation of existing and ongoing studies by offering guidelines for evaluation, and as a net effect, we propose, it will increase the impact of futures studies by making the practices more transparent and thus generating more confidence in the results.     

Accounting behavior of German firms after an ADR issuance

This paper presents preliminary evidence on whether German corporations that issue American depositary receipts (ADR) experience a change in the level of garbling in earnings as expressed under German Generally Accepted Accounting Principles (GAAP). In a shareholder regime, a manager's objective is to maximize the company's stock price. Past literature suggests that this will lead managers to follow a policy of more disclosure. In stakeholder regimes, managers have an ill-defined objective function and their compensation is not typically sensitive to the price of the stock. This literature suggests that managers in stakeholder regimes will manipulate earnings to satisfy the various constituents of the firm. By issuing an ADR, a company changes its regime: shareholders become relatively more important to the manager. To maximize the stock price, managers should minimize the overall noise in accounting numbers even under local GAAP. The empirical results are generally consistent with this hypothesis, but a small sample size prevents drawing definitive conclusions.     

A vision of futures studies

The article looks at futures studies from the point of view of the author who has spent over 30 years in the field, with special reference to the World Futures Studies Federation. It suggests that visions are essential for conducting futures studies and education in futures studies is vital for preparing future oriented new generations. The author points out that around the world women are developing silent alternatives to the present societies geared to conflict and violence; this may lead to non-violent changes of which many are not aware. Futures studies will also benefit from examining futures of cultures as we seem to be developing a new culture of peace.     

When Taxation Changes the Course of the Year: Fiscal‐Year Adjustments and the German Tax Reform of 2000–01*

This paper examines 157 German listed corporations that had the option of changing their fiscal year to achieve a possible tax reduction in connection with the major tax reform of 2000—01. The tax reduction from a change was larger, the larger the expected profits. However, with costs of changing the fiscal year, not all firms that expect a tax reduction from a change may do so. The paper presents empirical evidence that the propensity to change the fiscal year was significantly related to the amount of expected tax savings. This suggests that the corporate tax reduction — in combination with the special German transitory provisions — induced a deadweight loss: corporations incurred a non‐tax cost to avoid a tax cost.     

Some reflections on the high expectations as formulated in the Internet Bubble era

Since the breakthrough of the Internet to the broader public in the 1990s, expectations of the converging information technology, telecommunication and media industries and technologies as a catalyst for economic growth and social welfare have been high. Futures scientists were involved in predicting the future of these technologies during the Internet bubble. In this paper, we use a meta-analysis approach to examine how well futures studies have been able to describe future reality. We limit our studies to futures research in the ICT and Internet domain that were published between 1995 and 2000. Because the number of relevant studies can hardly be called impressive, we selected a number of available futures studies that were conducted by official government bodies and individual companies, based on various approaches, ranging from technology forecasts [1] to highly creative visions [2], and from predictions [2] to essays [4]. These studies were carried out by Dutch as well as by international organizations. Based on a framework we developed for the analysis of business models, we wanted to see whether technological drivers, regulatory/policy issues and market development as well as competitive behavior, on the input side, and the way value for customers and providers is provided, on the output side, were discussed. Our analysis made it clear that, looking back with what we know now about business models, futures studies and recently developed tools like road mapping, developments in futures studies have made tremendous progress since the Internet Bubble. However, here is still room for more rigor when it comes to methodology and reporting. More recently, there has been a promising integration of scenario analysis and business model approaches that opens new avenues for futures studies.