Weighted norm inequalities and hedging in incomplete markets

Let be an -valued special semimartingale on a probability space with canonical decomposition . Denote by the space of all random variables , where is a predictable -integrable process such that the stochastic integral is in the space of semimartingales. We investigate under which conditions on the semimartingale the space is closed in , a question which arises naturally in the applications to financial mathematics. Our main results give necessary and/or sufficient conditions for the closedness of in . Most of these conditions deal with BMO-martingales and reverse H?lder inequalities which are equivalent to weighted norm inequalities. By means of these last inequalities, we also extend previous results on the F?llmer-Schweizer decomposition.     

Managing innovation networks: Exploratory evidence from ICT, biotechnology and nanotechnology networks

This study examines the management of innovation networks which has enjoyed increased recognition in the marketing literature due to its growing prominence and relevance. By testing a causal model relating network factors to outcomes, the study contributes to theory development on managing innovation at the net level of analysis. Consequently, it contributes to the respective marketing literatures on new product development, open innovation, industrial marketing and its emerging network management sub-stream. It also offers a methodological contribution as respondents include key players from businesses, government agencies, research organizations and universities rather than from only one focal organization as studies in extant literature have predominantly done. Findings are based on 219 responses from Australian high technology networks, namely, information and communications technology and biotechnology/nanotechnology. The study offers valuable implications for marketing managers involved in new product development and innovation concerning strategies for managing their inter-organizational innovation initiatives effectively.     

Value relevance and timeliness of transitional goodwill-impairment losses: Evidence from Canada

Focusing on transitional goodwill-impairment losses (losses) recorded by Canadian firms following the adoption of revised standards on purchased goodwill, we investigate the value relevance and timeliness of mandatory changes in accounting principles accounted for using the retroactive method. We find a negative relationship between reported losses and share price. Such a finding is consistent with investors perceiving losses as being sufficiently reliable measurements of a reduction in the value of goodwill to incorporate them in their valuation assessments. We find also that investors put a higher valuation weight on losses reported by firms that are expected to record a loss. In addition, we show that investors perceive that there are reduced opportunities for managerial discretion when there is a more effective audit committee. Finally, our results show that returns lead losses, i.e., that losses represent a catch-up adjustment to reflect the cumulative effect of using the impairment approach for the first time. Overall, our evidence supports U.S. standard setters' decision, through SFAS 154, to favour enhanced comparability and consistency over the potential costs of frequent restatements. Our results also show that fair-value measurements can be relevant even when the financial statement elements of interest are inherently bound to measurement error and subject to significant managerial discretion. They support the notion that reliability is about faithful representation, not precision.     

Size and marketing centralization in multinational companies

A large-scale mail survey of some 200 Australian subsidiaries of multinational organizations aimed to identify a possible relationship between organizational size-related variables and the degree of centralization enforced by the multinational in relation to marketing decision making. The findings—that size and centralization are not correlated for each marketing mix variable—enhance previous literature on this issue, whose studies combined all marketing tasks with inconsistent results. This suggests that using organizational size-related variables as means of assigning the appropriate level of decision-making autonomy to each of the traditional marketing areas is not appropriate.     

Who's afraid of that ad? Applying segmentation to the protection motivation model

The protection motivation model has contributed usefully to researchers' understanding of fear appeals in advertising. However, the empirical evidence reported to date in the literature has been mixed. This article proposes and tests a revised model including two segmenting variables as a means to resolve some of the differences evident in past research. With the use of data derived from an experimental study of juveniles' response to a range of antismoking advertising treatments, empirical support was found for the mediating role of fear in predicting behavioral intentions and for the influence of individual differences. The results, however, did not confirm the moderating role of response or self‐efficacy. Future research is clearly needed to further validate the revised protection motivation model. © 2004 Wiley Periodicals, Inc.     

Crisis at the summit

An unrecognized affliction is striking certain gifted performers at the top of their game. Its cause, paradoxically, is success itself. These stars, who thrive on conquering new challenges, can lose their bearings and question their purpose once a job has been mastered. A vague dissatisfaction gives way to confusion and then to inner turmoil. Left unattended, this summit syndrome can derail promising careers. The syndrome has three phases. In the approach phase, when most of the challenges of a current job have been met, sufferers tend to push harder in a vain attempt to recapture the adrenaline rush of the climb. Then, in the plateauing phase, when virtually all the challenges have been conquered, these individuals, who are incapable of coasting, bear down to try to produce ever more stellar results, but to less effect and greater dissatisfaction. This leads to the terminal descending phase, when performance slips noticeably. As their superstar status fades, they jump ship, accept demotions, or take lateral transfers. It's a terrible waste, for if the syndrome is recognized, steps can be taken before performance slips to dispel the confusion and set the stage for productive growth to the next assignment. There are four parts to this process: First, understand your "winning formula"--the characteristic way you approach a situation--and the vital part it plays in feeling stale or losing your edge. Second, reconnect with your core purpose in life. Third, recast your current, or future, job to better align your inner aspirations with the external requirements of your work. And fourth, create a developmental path by honing a handful of core leadership competencies. None of this is easy, but for talented individuals--and the organizations that rely on them--the vaccine of preventive awareness is far better than gambling on an after-the-fact cure once the crisis is full-blown.     

Public reception of scientific uncertainty in the endocrine disrupter controversy: the case of male fertility

Scientific controversies are associated with significant uncertainty. Despite this uncertainty, available knowledge must be communicated to the public, who are potentially at risk. There are contradictions in the existing literature about the value of communicating uncertainty associated with science. Some scientists and decision-makers believe that communicating uncertainty to the public will produce panic and confusion, and will discredit science. Others believe that uncertainty must be communicated to increase trust in science. We tested reactions to communication about uncertainty related to the controversial link between exposure to endocrine disrupters and a decline in human male fertility. Our empirical setup used focus groups and qualitative analysis of participants’ perceived uncertainty and their emotions. The results show that laypeople raise more and different uncertainties than those communicated by researchers. Moreover, laypeople did not react to uncertainty ‘globally;’ they had different reactions to the different sources of uncertainty. Uncertainty did not elicit panic in this case study. Rather, uncertainty was reassuring, except when it was associated with an inability to precisely identify and, therefore, control the cause of male reproductive disorders. We discuss the emotions expressed and their relationships with communication about scientific uncertainty (powerlessness, guilt, outrage, etc.). We also note that feelings of confusion increase after uncertainty has been communicated.