Investment decisions in the wireless industry applying real options

The wireless industry is one of the most capital intensive high-technology industries. This paper applies real options techniques to estimate investments under uncertainty in two new ventures: (a) deferral of the expansion from 2.5G to 3G networks; and (b) expansion of a 2.5G network using Wi-Fi as an alternative technology. The cases are examined and analyzed both qualitatively and quantitatively, using realistic assumptions and parameters. Investment cost, number of subscribers, pricing of services, and risk are at the core of investment decision processing. In both cases, sensitivity analysis of the value of the (real) option considering the above key parameters was conducted, to extrapolate useful findings that should be taken into consideration by the decision makers in wireless companies.     

应对气候变化的国际经验及其启示

工业化以来人类排放的温室气体引致的气候变暖,已成为国际社会中的一个热点话题。世界各国从立法、制定规划或国家行动方案、采用总量控制和交易等市场手段、技术研发和创新、成立专门机构等途径应对气候变化。随着外部压力的日益增加,我国应将应对气候变化摆到国内战略转型的重要位置,采取综合措施,加强国际合作,提高气候变化的应对能力,实现低碳发展转型。     

Water in the desert? The influence of Wilhelm Röpke on Ludwig Erhard and the social market economy

It is commonly believed that Wilhelm Röpke heavily influenced Ludwig Erhard and, through him, West Germany’s social market economy. This article demonstrates that Röpke’s influence on Erhard was limited. Although the two men shared many common ideals, they also differed on many fundamental issues. Moreover, Erhard developed his ideas before he read Röpke’s wartime trilogy.     

On the prediction of financial distress in developed and emerging markets: Does the choice of accounting and market information matter? A comparison of UK and Indian Firms

We examine differences in price delay for a sample of real estate investment trust (REIT) and non-REIT matched pairs. Results suggest an economically and statistically higher level of price delay for REIT securities, which implies heightened frictions that increase the time needed for new information to be impounded into the prices of REIT shares. The primary drivers for the observed delay differential include differences in idiosyncratic volatility, market risk, and the number of days traded. Within-REIT determinants of delay confirm findings for the pooled sample of matched pairs. Importantly, we infer find that REIT investors are not compensated for restricted information flow, as excess returns are unrelated to the price delay.     

What Plato Knew About Enron

This paper applies Plato’s cave allegory to Enron’s success and downfall. Plato’s famous tale of cave dwellers illustrates the different levels of truth and understanding. These levels include images, the sources of images, and the ultimate reality behind both. The paper first describes these levels of perception as they apply to Plato’s cave dwellers and then provides a brief history of the rise of Enron. Then we apply Plato’s levels of understanding to Enron, showing how the company created its image and presented information to support that image, and how the public eventually emerged from the cave to realize the truth about Enron’s actual accounting practices and financial state, which led to the corporation’s downfall. We find Plato’s allegory both useful in analyzing the relationship between Enron and the public and instructive about the power and moral responsibility of Enron’s executives.     

Comparing factor analytical and circumplex models of brand personality in brand positioning

Competition has never been greater, which means it is more important than ever that organizations assess their brand management strategies, including brand personality management. However, little empirical research addresses the brand personality concept, particularly its role in product evaluation. An exception, which views brand personality as a set of human personality characteristics associated with a brand, has been criticized for its use of a factor analytical approach. An alternative approach posits that the brand represents a relationship partner with which the consumer may choose to engage; it corresponds to the interpersonal circumplex approach to personality modeling. The present study compares these two approaches by developing brand positioning maps and predicting consumer outcomes. The results support the factor approach in a purely quantitative sense, but the circumplex approach offers both a richer qualitative explanation of the findings by encompassing a broad spectrum of traits and a more diagnostic prediction of consumer outcomes. The alternative conceptualization of brand personality contained in these results should be of interest to brand managers. © 2009 Wiley Periodicals, Inc.     

The impact of formal processes for market information acquisition and utilization on the performance of Chinese new ventures

The authors examine the performance impact of formal market information processes. Specifically, a theoretical model is developed that hypothesizes that formal processes for market information acquisition and utilization have direct and positive main effects on new venture success and is then tested using a sample of 222 new ventures located in China. Findings indicate that new venture success is positively correlated with the use of formal processes for market information acquisition and use. Moreover, the relative importance of formal processes to the acquisition and use of market information depends on whether the new venture serves an emerging or established market. In particular, the impact of formal processes for information acquisition is higher among new ventures that serve emerging markets. In contrast, the impact of formal processes for information use is higher among new ventures that serve established markets. We present managerial implications of our results. For example, a new venture with a strong market orientation can respond quickly to emerging marketplace needs, and can even seize the advantage from incumbents. If it is in an emerging market, however, the new venture management team should strive to excel at information acquisition; in an established market, it is important for the management team to excel at information utilization.