An Evolutionary Approach to Financial Innovation

The purpose of this paper is to explain why some markets for financial products take off while others vanish as soon as they have emerged. To this end, we model an infinite sequence of CAPM-economies in which financial products can be used for insurance purposes. Agents' participation in these financial products, however, is restricted. Consecutive stage economies are linked by a mapping ('transition function") which determines the next period's participation structure from the preceding period's participation. The transition function generates a dynamic process of market participation which is driven by the percentage of informed traders and the rate at which a new asset is adopted. We then analyse the evolutionary stability of stationary equilibria. In accordance with the empirical literature on financial innovation, it is obtained that the success of a financial innovation, a mutation, depends on a sufficiently high trading volume, marketing, and new and differentiated hedging opportunities. In particular, a set of complete markets forming a stationary equilibrium is robust with respect to any further financial innovation while this is not necessarily true for a set of incomplete markets.
"There is no generally accepted theory of financial innovation, but some broad generalizations of the innovation process are possible. What matters is not the invention of a financial product or process (which is often obscure) but its diffusion through the market environment".
Ted Padolski (1987) in: The New Palgrave on Money and Finance: Financial
Innovation and Money Supply (p. 68)     

Dark tourism through the lens of attachment theory and domestic tourists

This study explores the factors that affect domestic tourist attachment to dark tourism destinations by developing a hybrid model using several methods, including structural equation modeling (SEM) and fuzzy analytical hierarchy process (FAHP), predicated on attachment theory. The study collected data from 60 tourism experts and 622 domestic tourists. The study found that tourist motivation, national identity, tourism impacts, and destination attachment are all crucial factors that explain domestic tourist behavior towards dark tourism. The results of the mediation analysis indicate that destination attachment mediates the relationship between tourist motivation, national identity, and negative tourism impact with tourist satisfaction. The FAHP results show that place identity has the highest influence while place dependence has the lowest influence in shaping domestic tourists' selection of dark tourist destinations. The study's findings provide valuable insights for tour operators and destination managers to meet domestic tourists' expectations of dark tourism, adding to the existing knowledge related to the factors that impact dark tourism.     

Mobile Commerce Competitive Advantage: A Quantitative Study of Variables that Predict M-Commerce Purchase Intentions

Seeking to fill a gap in current research on the conditions that would facilitate user acceptance of m-commerce, the present study investigated m-commerce users’ perceptions of performance and effort expectancies, social influence, and facilitating conditions of m-commerce trust and perceived risk. We also analyzed how these aspects affect m-commerce purchase intentions. To this end, a total of 165 adult American users of m-commerce were surveyed and their perceptions of performance and effort expectancies, social influence, facilitating conditions of m commerce trust and perceived risk, as well as their m-commerce purchase intentions, were measured. Performance and effort expectancies, social influence, as well as the facilitating conditions of trust in the use of m-commerce, were found to significantly predict m-commerce purchase intentions. The findings also provided further clarification of the facilitating conditions of m-commerce purchases suggesting that implicit motivations and approach oriented goals might be significantly associated with m-commerce purchase intentions.     

The ABC-LCA method for the integration of activity-based costing and life cycle assessment

This article presents an approach to integrating life cycle assessment (LCA) into an activity-based costing (ABC) model to develop a steering system that takes into account both financial costs and associated environmental impacts. By combining the formalism of LCA and ABC matrix calculations, we show how impact assessment results can be affiliated with costs to jointly and simultaneously compute the costs and environmental impacts of products and activities. The conditions of integration are developed following the four-step structure of LCA. The proposal is applied to a simplified case study of the ‘Classic Pen Company.’ The developed ABC-LCA approach paves the way for further test applications, which are considered useful in the context of environmental indicators for strategic steering, communication with customers and forecasting or simulation.     

Price discovery in commodity derivatives: Speculation or hedging?

We investigate whether commodity futures or options markets play a more important role in the price discovery process in the six most actively traded markets: crude oil, natural gas, gold, silver, corn, and soybeans. Using new information leadership techniques, we report new evidence and report that both markets make a meaningful contribution to price discovery in recent times; however, on average, options lead futures in reflecting new information for a majority of these commodities. We find that increased speculation, rather than hedging activity, in commodity derivatives is a key determinant of price discovery in the options markets.     

What do we know about business strategy and environmental research? Insights from Business Strategy and the Environment

Business Strategy and the Environment (BSE) is a premier journal dedicated to interdisciplinary research that advances business practice leading to improvements in environmental performance. Using big data analytics, this review examines the intellectual structure and the drivers of research impact of BSE in the scholarly domain. The bibliometric results suggest three major findings. First, the top three countries contributing to BSE are the United Kingdom, the United States, and China. Second, BSE's research manifests through five thematic clusters, namely, business strategy and sustainability; corporate governance and sustainability reporting; green marketing and pro-environmental behavior; innovation and environmental policy; and environmental management systems. Finally, BSE's research impact in terms of citations is significantly influenced by author affiliation (United States); article age (older), appearance (lead article and special issue), length (longer), and method (mix methods); title length (shorter title); and number of keywords (more keywords) and references (more references). Implications for BSE's readers and future contributors are discussed.     

An Empirical Assessment of the Influence of March and Simon’s Organizations: The Realized Contribution and Unfulfilled Promise of a Masterpiece

March and Simon’s Organizations is a seminal work in management studies. We assess the contribution Organizations has made to management studies through a citation context analysis of 1,400 articles from top management journals. By categorizing the content from Organizations cited in subsequent works, we find that two related categories associated with cognitive limits and routines or programs account for half (50.5%) of all citation contexts since 1990. We also investigate whether citations to Organizations have been peripheral or substantial to the citing authors’ claims, how cited content has changed over time, and the extent to which citing works have provided empirical evidence to test March and Simon’s propositions or have been critical of their assertions. Our investigation reveals disturbingly few attempts to empirically validate the assertions made in Organizations. Overall, we provide a critical reflection on how well subsequent scholarship fulfils the aims and promise heralded by this masterpiece.     

Information shocks and the empirical evaluation of training programs during unemployment spells

We study the role of notifications in the evaluation of training programs for unemployed workers. Using a unique administrative data set containing the dates when information is exchanged between job seekers and caseworkers, we address three questions: Do information shocks, such as notification of future training, have an effect on unemployment duration? What is the joint effect of notification and training programs on unemployment? Can ignoring information shocks lead to a large bias in the estimation of the effect of training programs? We discuss these issues through the lens of a job search model and then conduct an empirical analysis following a “random effects” approach to deal with selectivity. We find that notification has a strong positive effect on the training probability but a negative one on the probability of leaving unemployment. This “attraction” effect highlights the importance of accounting for notifications in the evaluation of active labor market policies.     

What matters in the finance–growth nexus of advanced economies? Evidence from OECD countries

Over the last decades, a large strand of finance and growth literature has provided ample evidence on the importance of financial deepening for economic development. Yet, recently, the focus of public debate has shifted towards the role of the financial system structure, an area in which empirical research remains relatively sparse and exploratory in nature. With this article, we aim to contribute to that debate by analysing the role the financial system structure plays in economic growth and risk. Focusing on stock markets and studying OECD economies over 1994–2013, we find that, ceteris paribus, financial systems with relatively larger stock markets facilitate economic growth and dampen economic risk. Our findings remain robust under application of instrumental variable and system generalized method of moments estimators, as well as when we use an alternative definition of stock market development, estimate median regressions, examine relatively high-frequency annual data, control for systemic banking crises or apply quadratic specifications. We find no such effect for private bond markets or private credit volume. Overall, our results suggest that financial system structure matters for the economic development of advanced economies and highlight the importance of a debate about the optimal structure of an economy’s financial system.