Could the global financial crisis improve the performance of the G7 stocks markets?

Financial crises are normally associated with negative effects on financial markets. In this article, we investigate whether the most recent global financial crisis (GFC) had any positive impact on the G7 (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States) indices. To conduct the analysis we employ the mean–variance (MV) analysis, CAPM statistics, Hurst exponent, runs test, multiple variation ratio test and stochastic dominance (SD) tests. Our MV and CAPM results conclude that most of the G7 stock indices are significantly less volatile. The results from Hurst exponent, run tests and multiple variation ratio confirm that efficiency improved in the post-GFC period. Finally, our SD results conclude that there is no arbitrage opportunity and the markets are efficient due to the GFC, and, in general, investors prefer investing in the indices after the GFC. Overall, we conclude that the GFC led to markets that are more efficient and mature, confirming that crises can also have positive impacts on stock markets. These findings provide important information for investors and market regulators.     

Regional tourism development: culture,nature, life cycle and attractiveness

In this article, a simplified version of the tourism area life cycle model is developed in order to identify different stages of tourism evolution among the regions of Southwest Europe (Italy, France, Spain and Portugal). This information has been included as a dummy variable in a panel data model which aims to explain regional tourism attractiveness, between 2003 and 2008, including other variables related to sustainability (regional natural and cultural resources), regional innovative efforts and other elements related to tourism infrastructures and economic conditions that influence regional tourism performance. The results obtained show that 50% of the inland regions and 56% of the west coast regions are in the exploration stage while 52% of the south coast regions are in stagnation. An important result from the application of the panel data model is the identification of a positive relation between the regional availability of natural and cultural assets, the regional efforts on innovation and the evolution of tourism demand, suggesting that these regions are generally incorporating these local specific resources in innovative ways to differentiate their tourism supply.     

Millennials’ travel motivations and desired activities within destinations: A comparative study of the US and the UK

Millennials are one of the largest groups to be targeted by tourism companies. This paper compares the travel motivations of Millennials from both the United States and the United Kingdom by ratings, rankings and perceptual structures of both push and pull factors. This exploratory study used a questionnaire to examine the inner motivations (e.g. push factors) and preferred destination activities (e.g. pull factors) of American and British Millennials (n?=?322). Data analysis included the non-parametric Mann–Whitney U test, Kendall’s coefficient of concordance, an alternating least-squares algorithm (ALSCAL) model and ordinal regression. The results reveal that American and British Millennials are quite homogeneous in their push travel motivations and destination activity preferences. The most important motivational factors for both are ‘to relax’ and ‘to escape from the ordinary’. Both nationalities also agree that the most attractive destination activities are ‘to try local food’ and ‘to go sightseeing’. The findings indicate that the US and UK samples are similar and that there is room for segmentation according to demographics.     

Executive compensation and gender: S&;P 1500 listed firms

We examine if a gender gap persists in executive compensation and if the composition and the determinants of executive compensation for men versus women are the same for the S&P1500 listed firms during the period from 1992 to 2004. This analysis is also extended to high tech firms, where high scholarship is required both for male and female executives. The results reveal that the gender gap in executive compensation is reducing essentially after the year 2000. Also, the factors that explain the variation in executive compensation are not all the same for men and women. However, firms continue to pay women, who are considered more risk averse than men, a similar proportion of risky compensation components, such as stock options and restricted stocks, than they pay to men. In terms of technology firms, we find that the gender differences in total compensation are not statistically significant. Our study offers insight into recent data for executive compensation. The finding that the gender gap diminishes is a sign of a better functioning market for executives. Our findings could be potentially useful for compensation committees in order to develop compensation packages that take into consideration the degree of risk aversion in order to enhance performance. Compensation adjusted for risk aversion can produce a higher level of satisfaction for the employees and can lead to better performances. Future research should focus on international comparison of various dimensions of executive compensation.     

Probability distributions and leveraged trading strategies: an application of Gaussian mixture models to the Morgan Stanley Technology Index Tracking Fund

The purpose of this paper is twofold. Firstly, to assess the merit of estimating probability density functions rather than level or direction forecasts for one-day-ahead forecasts of the Morgan Stanley Technology Index Tracking Fund (MTK). This is implemented using a Gaussian mixture model neural network, benchmarking the results against standard forecasting models, namely a naïve model, a moving average convergence divergence technical model (MACD), an autoregressive moving average model (ARMA), a logistic regression model (LOGIT) and a multi-layer perceptron network (MLP). Secondly, we examine the possibilities of improving the trading performance of those models with confirmation filters and leverage. While the two network models outperform all of the benchmark models, the Gaussian mixture model does best: it is worth noting that it does well on a time series where the training period is showing a strong uptrend while the out-of-sample period is characterized by a downtrend.     

Firms’ leverage and labour productivity: a quantile approach in Portuguese firms

We show that the leverage of Portuguese firms tends to negatively affect its labour productivity for firms with relatively lower labour productivity but to positively affect this variable for firms in the right-hand side of the productivity distribution. This is particularly important in a country where labour productivity is persistently lower compared with the richer countries in Europe. Thus, we have concluded that, controlling for the usual effects, increasing leverage cannot be a solution for the less productive (and consequently the majority) of Portuguese firms.     

Japanese management and salary productivity: the case of the electronic and automotive industries in Portugal

This paper intended to assert in what form the Japanese approach to business management, concerning the factors human resources, research and development (R&D) and organization and methods, has effect on the value creation by workers, beyond that expressed in direct salaries. The investigation fell on companies in the electronic and automotive sectors operating in Portugal, with and without Japanese capital, in the 6-year span from 2001 to 2006. This paper is divided into four parts. The first part presents the Workonomic Index as an indicator of salary productivity – the measure of the value creation by workers, beyond that expressed in direct salaries. The second part presents in short the factors that are linked to the high productivity of the Japanese industrial worker. The third part presents the goal, hypothesis and methodology of the empirical study, namely the components of the above-mentioned factors. Finally, the fourth part is dedicated to the presentation of the empirical study and its conclusions. The specific results demonstrated that the impact on salary productivity is clearly visible over the factor organization and methods. In addition, there is evidence of substantial indirect influence of R&D on the creation of surplus value.     

Is the value of environmental goods sensitive to the public funding scheme? Evidence from a marine restoration programme in the Black Sea

In this paper, we conduct choice experiments in Turkey and Ukraine on the valuation of a marine restoration programme in the Black Sea, to examine whether the value of environmental goods is sensitive to the source of public financing. We contribute to the debate on the optimal composition of public expenditure, an issue that can be controversial in times of financial crises. We discriminate between two funding regimes through the reallocation of public spending. The first proposes financing the marine restoration programme by reducing public expenditure for investments in renewable energy, and the second by reducing public expenditure for civil servants’ training. The results reveal that the marginal value of public money depends on the funding source. Furthermore, attribute values are sensitive to the trade-off implied by the funding scheme. The magnitude of the results differs in the two countries considered, because of their heterogeneity in political and cultural dimensions.     

Visual and Interactive Comparative Analysis of Individual Opinions: A Group Decision Support Tool

This study proposes the use of the visual, interactive and comparative analysis (VICA) methodology to encourage consensus-building in decision making processes involving multiple criteria and multiple participants working in cooperative groups. The tool was applied to the Electre TRI (VICA-Electre TRI) method which utilises comparative analyses plus visuals and the interactive exchange of individuals’ opinions within the group. It aims at reducing complexity, presenting updates about each member’s progress in the decision making process and fostering the search for consensus. The methodology was implemented in a spreadsheet format (Microsoft Excel) to make it as accessible as possible while also facilitating its acceptance and efficient use within organizations.     

Comparing Tax and Tax Reallocation Payments in Financing Rail Noise Abatement Programmes: Results from a Stated Choice Valuation Study in Italy

The paper examines the use of stated choice experiments (SC) to assess the economic value of alternative rail noise reduction interventions on the Brennero railway in Italy. The paper formally tests the econometric robustness of the SC estimates under three payment regimes: (a) a regional tax, where consumers must trade off welfare gains due to noise reduction for part of their income; (b) a transport tax reallocation scheme, where consumers must trade off a part of the tax payments that are currently spent on the public transport sector; and (c) an administration tax reallocation scheme, where consumers must trade off a part of the tax payments that are currently spent on the administration sector. The test results are varied. On the one hand, the SC estimates are found to be statistically different for the tax reallocation and the tax introduction regimes. This confirms previous valuation research results, and thus reiterates the hypothesis that states the inequality between marginal values of private income and public money. On the other hand, the SC estimates are not found to be statistically different for the two proposed tax reallocation regimes, suggesting that, in the case study investigated here, the marginal value of public money does not depend upon the budget source.