A performance analysis of participating life insurance contracts

Traditional life insurance products, in particular participating life insurance contracts, are often criticized. Their performance is often said to be poor compared to other investment alternatives. Interestingly, this perception appears to persist although very little research has been conducted into the performance of participating life insurance contracts. But are participating life insurance contracts actually bad for policyholders? We conduct a performance analysis based on contracts offered in the German market, in order to provide evidence to support decision making by policyholders.     

Asset Write‐downs: Evidence from 2001–2008

Accounting for asset write‐downs has received substantial media attention throughout the Global Financial Crisis and has been the subject of academic debate and numerous accounting regulations during the past three decades. This study provides evidence of the magnitude and frequency of quarterly asset write‐down activities for a sample of US firms between 2001 and 2008 and examines whether reported asset write‐downs mirror market and economic indicators during the sample period.     

Governance and resource interaction in networks. The role of venture capital in a biotech start-up

This paper examines venture capital (VC) governance in innovation processes. The VC literature often presents the relationship between a VC firm and a start-up as dyadic and analyzes it with agency theory. In contrast, this paper deploys the resource interaction framework presented in Håkansson and Waluszewski (2002) to governance and innovation in networks. The paper reports an in-depth case study of Pyrosequencing, a Swedish biotech firm financed with VC. The results from this study reveal how the relationship between a VC and a start-up company is embedded in a wider network and how the governance of the VC spreads in the surrounding network and influences a start-up's possibilities to develop organizational and technical resource interfaces to critical counterparts such as suppliers and customers.     

Estimation and pricing under long-memory stochastic volatility

We treat the problem of option pricing under a stochastic volatility model that exhibits long-range dependence. We model the price process as a Geometric Brownian Motion with volatility evolving as a fractional Ornstein–Uhlenbeck process. We assume that the model has long-memory, thus the memory parameter H in the volatility is greater than 0.5. Although the price process evolves in continuous time, the reality is that observations can only be collected in discrete time. Using historical stock price information we adapt an interacting particle stochastic filtering algorithm to estimate the stochastic volatility empirical distribution. In order to deal with the pricing problem we construct a multinomial recombining tree using sampled values of the volatility from the stochastic volatility empirical measure. Moreover, we describe how to estimate the parameters of our model, including the long-memory parameter of the fractional Brownian motion that drives the volatility process using an implied method. Finally, we compute option prices on the S&P 500 index and we compare our estimated prices with the market option prices.     

Framing Sustainable Consumption in Different Ways: Policy Lessons from Two Participatory Systems Mapping Exercises in Hungary

Sustainable consumption as a complex phenomenon at the boundaries of different (ecological, economic, social) systems requires theoretical approaches that do justice to its complex causality and dynamism. Participatory systems mapping offers a tool to achieve this purpose. Its policy relevance lies in its ability to include diverse views, multiple actors, and offer options for policy intervention. The research reported here applied participatory systems mapping in order to define and identify system boundaries for sustainable consumption and uncover perceived causal relationships among the determining factors of sustainable consumption. By revealing the mental models of an expert and a conscious consumer panel on sustainable consumption in general, we can shed light on the cognitive constructions of sustainable consumption and identify most important boundaries that were chosen and their implications on policy-making. The expert panel framed the boundaries as lack of sustainable consumption, while the conscious consumer panel employed a positive framing as strong communities in sustainable consumption. The two panels also differed in their focus on scale: Experts targeted the national scale, while conscious consumers concentrated at the local scale.     

The Impact of Austerity in the Framework of Corporate Rescue and the Rights of Workers in the EU: A Road to Recovery?

The financial crisis and the sovereign debt crisis have been attributed to a number of causes. Whether these are economic, social, cultural or legal, they are all by and large also political. The aim of this article is not to delve into the myriad of heated political arguments that continue to dominate the scene but to assess the impact of the financial crisis on the employment protection rights and the corporate rescue regimes in Greece, Portugal, France and the UK. In light of the crisis, the rights of the workforce have been severely compromised to afford financially troubled companies a greater opportunity to recover. In order to minimise the catastrophic impact of financial turmoil on their economy and society, all four jurisdictions introduced reforms to their labour codes and corporate rescue mechanisms, often in the name of austerity. This article will offer a snapshot of the changes and their effects and an assessment whether or not the reforms of pre‐insolvency regimes have operated as an effective embankment for the protection of social and economic welfare. The purpose of this piece is to shed a light on the changes that have occurred and that have affected employment rights in the domestic legal systems of individual member states, as influenced to some extent by the EU in its expectations of improvements to increase labour market flexibility, and whether corporate rescue mechanisms in individual member states are able to provide some counterbalance to the erosion of employment rights generally. Copyright © 2017 INSOL International and John Wiley & Sons, Ltd.     

Community resilience to long-term tourism decline and rejuvenation: a literature review and conceptual model

Studied for decades in disciplines such as ecology, psychology, engineering and sociology ‘resilience’ can be defined as a system's ability to withstand and respond to change. The tourism literature has embraced the concept of community resilience by harnessing concepts of adaptive capacity and vulnerability. Many of these studies have focused on the tourism system's ability to respond to short-term disasters and hazards. With the growth of resilience studies in tourism, it is timely to take stock of the core premise of resilience as it is applied to tourism and to identify key gaps in current research. Consequently, this research aims to identify the core concepts of community resilience, with a focus on its application within tourism. The findings reveal that many studies have been conceptual, although there are an increasing number of empirical studies underpinned by resilience theory. Therefore, a conceptual model is presented to broaden existing resilience research and to guide future research into community resilience to tourism decline and rejuvenation.