Market pricing of executive stock options and implied risk preferences

When managers get to trade in options received as compensation, their trading prices reveal several aspects of subjective option pricing and risk preferences. Two subjective pricing models are fitted to show that executive stock option prices incorporate a subjective discount. It depends positively on implied volatility and negatively on option moneyness. Further, risk preferences are estimated using the semiparametric model of Aït-Sahalia and Lo (2000). The results suggest that relative risk aversion is just above 1 for a certain stock price range. This level of risk aversion is low but reasonable, and it may be explained by the typical manager being wealthy and having low marginal utility. Related to risk aversion, it is found that marginal rate of substitution increases considerably in states with low stock prices.     

Competitive dynamics,strategic consistency,and organizational survival

This study investigates strategic consistency in competitive behavior. We construct a logically consistent evolutionary model, providing a causal argument to link a level of strategic consistency to long‐term organizational survival. According to our results, strategic consistency seems to be related to both organizational survival and the most efficient change over time concerning the key elements of a firm's strategy. One of the benefits of the model is that some of the components and processes may be manipulated through experimental or simulation interventions. This means that the model can be formally tested in future studies and managers can use it to fine‐tune patterns of competitive behavior. Copyright © 2008 John Wiley & Sons, Ltd.     

How well does a national newspaper reporting system profile drowning?

In Finland, the Finnish Association for Swimming Instruction and Life Saving (SUH) and Statistics Finland (SF) both provide nationwide data on unintentional drowning. The SUH database relies on rapid reporting from a newspaper clipping service and additional local police information, whereas the SF database relies on the later release of the death certificate information, which is based on extensive medico-legal investigation. The aim of the study was to explore the main differences between the SUH and SF databases for drowning and to evaluate the capacity of the former to characterize drowning events in Finland from 1998 to 2000. Computerized files of death certificates tabulated by SF were linked with the SUH database by deterministic methods. SF and SUH databases allowed the identification of 704 and 567 unintentional drownings, respectively, giving an unintentional drowning rate of 4.5 and 3.6/100?000 per year. Of the 704 drownings described by SF, 418 (59.4%) were also found in the SUH database. The SUH database markedly underreported drowning fatalities in certain settings, such as bath, ditch and swimming pool drownings; fall- and land-traffic-related drownings; and drownings occurring in South Finland. The narrative text of SUH drownings contributed limited information to characterize the drowning events. It was concluded that the newspaper-based SUH data provide more timely data on individual drownings but are not representative of all drownings. Conversely, the SF vital statistics data are more accurate but may take up to 2 years to become available. Both SUH and SF data provide little detailed information on drowning events. A multidisciplinary national surveillance system for drowning is necessary to provide more accurate and timely drowning data, analyse risk factors and design follow-up studies for developing and monitoring prevention strategies.     

Interest Rate Risk Management in Major Finnish Firms

The interest rate policies of Finnish firms appear risk aversive, but hedging decisions are influenced by market view. Managers find they can forecast trends in interest rate development, and employ the forecasts in the choice of debt and hedging instruments. The use of risk assessment methods and hedging instruments are related to firm size but not to leverage. Most frequently employed hedging instruments are interest rate swaps and forward rate agreements. The respondents find their firms' interest rate risk management is successful, but performance is seldom measured against an explicitly defined benchmark.     

Existential–Experiential View of Self‐Sourced (In)Authentic Healthcare Identity

In the healthcare context, both nurses and doctors derive their professional identities from diverse backgrounds, thus resulting in two distinct professions. Becoming a leader and forming a leader identity that is separate from a strong professional identity is a difficult task. However, assuming a leader identity is considered an important aspect of actually being a leader, not just a professional with a leader position. The current article explores authenticity in generic healthcare leader identity formation by utilizing the concept of professional identity. Instead of committing to the humanistic ontological roots of the authentic leadership construct, the research analyzes the concepts of self and authenticity from an existential–experiential perspective. A conceptual framework of self‐sourced healthcare identity formation, including leader identity and professional identity, is presented. The framework shows how leader identity originates in the leader's experiencing self‐in‐situation, which is understood as the source of authenticity. The experiencing self, or the self as a subject, is differentiated from the experienced self, or the self as an object, by which professional identities are formed. The conceptualization provides a way of understanding and developing leadership in fields consisting of strong professional identities. The applications of the framework are also discussed.     

Targeting Rural Tourists in the Internet: Comparing Travel Motivation and Activity-Based Segments

This study aims to compare activity-based segmentation and travel motivation segmentation from the perspective of information search behavior and online use behavior by comparing segment heterogeneity. The data were collected from users of three Finnish rural tourism websites with 1754 completed and usable questionnaires to create segmentation solutions based on travel activities and motivations using hierarchical cluster analysis and then comparing the results. The results indicate that travel activities are more useful than travel motivations in finding heterogeneous segmentation solutions, making the travel activity segments more heterogeneous than travel motivation segments as regards their information search behavior and Internet use. The results suggest that in this era of Internet marketing, travel activities are a better segmentation base than travel motivations in order to target different market segments as activities form more heterogeneous segmentation solutions.