Can the FSCORE add value to anomaly-based portfolios? A reality check in the German stock market

Financial Markets and Portfolio Management - This paper examines the added value of using financial statement information, particularly that of Piotroski’s (J Account Res 38:1, 2000....     

The Social Value of Biodiversity for R&D

The value of genetic resources for use in research and development (R&D)activities has been the subject of a literature modelling the activity as onewhere individual firms engage in optimal search. Here we develop a moregeneralised framework in which genetic resources are used in R&D at thebase of an industry that addresses recurring problems of resistance, as inthe pharmaceutical or plant breeding industries. The R&D process is onein which firms are engaging in a continuing contest of innovation againsta background of both creative destruction (Schumpeterian competition) andadaptive destruction (natural selection and adaptation). This frameworkdemonstrates that the search model is conceptually inadequate because itfails to incorporate the important dynamic characteristics of biologicalphenomena. We then demonstrate the important differences between firm-based valuation of genetic resources and the social value of geneticresources for use in this contest of innovation. There are six externalitiesin private patent-based genetic resource valuation, and five of theseindicate that private valuations will under-estimate social values.     

Non-parametric tests of productive efficiency with errors-in-variables

We develop a non-parametric test of productive efficiency that accounts for errors-in-variables, following the approach of Varian. [1985. Nonparametric analysis of optimizing behavior with measurement error. Journal of Econometrics 30(1/2), 445–458]. The test is based on the general Pareto–Koopmans notion of efficiency, and does not require price data. Statistical inference is based on the sampling distribution of the L_∞ norm of errors. The test statistic can be computed using a simple enumeration algorithm. The finite sample properties of the test are analyzed by means of a Monte Carlo simulation using real-world data of large EU commercial banks.     

Das Überschreiten der Deckungssumme in der Haftpflichtversicherung – Juristische,betriebswirtschaftliche und versicherungsmathematische Aspekte

In respect of liability insurance the insured amount limits the fulfilment of the insurer. The article describes the legal regulations in Germany and hereby closely linked economic and actuarial challenges. It should thus provide an impetus to the necessary interdisciplinary work on the general perception of difficult cases of (possible) exceeding the insured amount.     

Fiscal federalism and the composition of public investment in Europe

We analyse the determinants of the composition of public investment in Europe, with a special focus on the role of fiscal decentralisation. The results suggest that fiscal decentralisation boosts economically productive public investment, notably infrastructure, and curbs the relative share of economically less productive investment, such as recreational facilities. While not readily reconcilable with the traditional theory of fiscal federalism, these findings can be interpreted in terms of the literature on fiscal competition, with not only tax rates but also the quality of public expenditure weighing in firms' location decisions.     

Consumer-to-consumer e-commerce: outcomes and implications

Abstract

One outcome of the digitised retail environment is the emergence of consumer-to-consumer (C2C) electronic commerce. Existing research has extensively addressed C2C commerce in an offline environment, while relatively little is known about online C2C behaviour. Thus, there is a need to deepen the understanding of how and why consumers engage in C2C e-commerce as well as the implications that C2C e-commerce holds for retailers. To address this gap, a comprehensive survey targeting Finnish consumers was conducted. The survey yielded a total of 2823 respondents who had transacted on C2C e-commerce platforms. The data are used to profile C2C e-commerce with demographics, product categories, customer value and key retail outcomes. This analysis provides a well-grounded basis for discussing the implications of C2C e-commerce for retailers.     

Higher-order risk preferences in social settings

We study prudence and temperance (next to risk aversion) in social settings. Previous experimental studies have shown that these higher-order risk preferences affect the choices of individuals deciding privately on lotteries that only affect their own payoff. Yet, many risky and financially relevant decisions are made in the social settings of households or organizations. We elicit higher-order risk preferences of individuals and systematically vary how an individual’s decision is made (alone or while communicating with a partner) and who is affected by the decision (only the individual or the partner as well). In doing so, we can isolate the effects of other-regarding concerns and communication on choices. Our results reveal that the majority of choices are risk averse, prudent, and temperate across social settings. We also observe that individuals are influenced significantly by the preferences of a partner when they are able to communicate and choices are payoff-relevant for both of them.     

Generating consumer insights into physical activity patterns for three different segments

Segmentation theory has been suggested as an effective way to target social marketing programmes to meet different needs of different subgroups in order to achieve behaviour change more effectively. The aims of this research were two fold. First, to identify whether distinct physical activity consumer segments existed among an urban population sample and second, to observe how physical activity levels changed over a one-year period. A two-step cluster analysis was used to identify homogenous subgroups in the study population. Next, repeated measures ANOVA, with post hoc group analysis, was conducted to examine changes in physical activity over time and to determine if there was a significant difference between the identified segments. Three segments were identified at baseline: female positivists, active males and young and motivated. Findings indicate that physical activity changed over time for the better in all three segments with positive changes observed both in terms of the number of physical activity sessions and time spent on physical activity for exercise, recreation or sport in the past seven days. Implications for future research and practice are outlined.     

Ageing shocks and short-run regional labour market dynamics in a spatial panel VAR approach

Using a flexible spatial panel VAR model for a small-scale labour market system, we investigate the dynamic interdependences between changes in the demographic structure and the labour market performance of a regional economy. With a particular focus on ageing shocks, we describe an increase in the share of elderly in regional population due to exogenous changes in the institutional context, such as pension reforms. The regional labour market implications of an ageing shock are then tested with regard to the effects on employment growth, unemployment and labour participation rate. Our results based on a sample of 71 Scandinavian regions point to negative regional labour market effects of an ageing shock implying a reduction in employment growth and a temporarily declining labour participation rate, while the unemployment rate increases. Importantly, spatial spillovers amplify these negative impacts through a marginalization of macro-regional labour markets. As a robustness check, we reverse the causal ordering and analyze the responses to a positive macroeconomic shock which initially increases employment growth. We find direct and spatially indirect adjustment patterns characterized by a reduction of the unemployment rate, an increase in the labour participation rate and a decrease in the share of elderly in the population.     

Another look at Swedish business cycles, 1861–1988

The linearity of nine long Swedish macroeconomic time series, whose business cycle properties were discussed by Englund, Persson, and Svensson (1992), is tested and rejected for all but two. Non-linear (STAR) models are estimated, and their properties are investigated. Business cycle frequency variation does not seem to be constant over time for all series; it is difficult to find a ‘Swedish business cycle’. Pairwise Granger non-causality tests are adapted to the STAR case, and non-causality is tested. The results point at strong temporal interactions and indicate that the functional form (linear or STAR) strongly affects the outcome of these tests. Copyright © 1999 John Wiley & Sons, Ltd.