A decomposition analysis of managerial efficiency for the insurance companies: A data envelopment analysis approach

The insurance industry worldwide has become less fragmented through liberalization reforms. Yet, following the transformational changes, there is little empirical evidence on identifying the determinants of managerial efficiency. This paper employs a truncated regression analysis to determine the factors driving managerial efficiency of Malaysian insurers. Overall and divisional efficiencies are derived using data envelopment analysis. The decomposition analysis reveals that the observed inefficiency is mainly caused by investment capability division. The regression findings reveal that determinants of efficiency have dissimilar impacts on overall and divisional efficiencies. This study broadly supports financial liberalization as a means of promoting managerial efficiency.     

Customer focus helps utility see the light

Florida Power & Light knew it had to transform the way it operated to remain competitive. The key was to understand changing customer needs and build those needs into its planning process.     

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A higher-order model of community resilience potential: development and assessment through confirmatory composite analysis based on partial least squares

Quality & Quantity - The topic of community resilience attracts as much academic research as it does social media. Understanding the drivers of change and community adaptation in the face of...     

Does Diversification Improve the Performance of German Banks? Evidence from Individual Bank Loan Portfolios

Should banks be diversified or focused? Does diversification indeed lead to increased performance and therefore greater safety on the part of banks as traditional portfolio and banking theory would suggest? Recently, Acharya et al. (J Bus, 79:1355–1412, 2006) have found that for Italian banks the answers to these questions depend on the level of risk that a bank has taken. In this paper we investigate whether this result is robust to the choice of the sample and to the calculation of the risk variable. To this end we use a unique data set of the individual bank loan portfolios of 983 German banks for the period from 1996 to 2002 and calculate a Value-at-Risk based risk variable. We then investigate the link between banks’ profitability and their portfolio diversification across different industries, broader economic sectors and geographical regions. We find little evidence of large performance benefits associated with diversification: For the majority of our data, diversification tends to be associated with reductions in bank returns, even after controlling for risk. Only in a few cases (e.g., high-risk banks and industrial diversification) do we find statistically significant positive relationships between diversification and bank returns. Our findings contradict both the empirical findings of Acharya et al. (J Bus, 79:1355–1412, 2006) and the theoretical findings of Winton (Don’t put all your eggs in one basket? Diversification and specialization in lending. Working Paper No. 00-16, University of Minnesota, 1999).     

Economic impact of industry-sponsored clinical trials of pharmaceutical products in Austria

Abstract

Aims: Modern pharmaceutical product development is a long and complex process associated with significant investments by pharmaceutical companies. The innovative pharmaceutical industry accounts for the vast majority of expenditures in clinical trials of potential new pharmaceuticals and therefore generates economic activity within a country. The aim was to assess the far-reaching economic impact of industry-sponsored clinical-trials (ISCTs) of pharmaceutical products for the healthcare system and the national economy.

Materials and methods: The study approach was based on three analytical steps. First, a survey among 15 pharmaceutical companies in Austria was conducted to evaluate the annual number of ISCTs subdivided according to trial phase, therapeutic areas and associated employees. Second, the monetary value of treatments performed in ISCTs was calculated based on a sample of clinical-trial protocols. Finally, the macroeconomic impact, measured in terms of value-added and jobs created by the conducted ISCTs, was calculated using Input–Output analysis by applying an extended Leontief-model.

Results: The study demonstrated that €116.22 million spent in ISCTs generated a total value added of €144 million, €74 million direct, in 2018. Each year a medical treatment value of €100 million was financed through 463 ISCTs, with an average value of medical treatment of €37,068 per recruited patient. This represents a significant 0.3% of annual current health-expenditures. In summary, each Euro invested by the pharmaceutical industry in ISCTs generates €1.95 for the Austrian economy. ISCTs also created and secured employment in the extent of 2,021 full-time-equivalents, thus resulting in an employment multiplier of 1.66.

Conclusions: In conclusion, conducting clinical-trials by pharmaceutical industry—beside its importance in its own domain—results in tangible benefits and a positive macroeconomic impact that contribute to the sustainability of the Austrian healthcare system by complementing its limited resources. Furthermore, it is a non-negligible factor in locational and industrial policy.     

Consumer involvement in research using oral history: ‘What are people's experiences of health and well‐being in Halton?’

The purpose of this paper is to describe a qualitative oral history case study that involved consumers in research and followed a collaborative approach in the north‐west of England. This study had two aims: (1) to increase local voluntary groups research capacity through active involvement in research; and (2) to explore the community's historical perceptions of health and well‐being. The research team included four lay researchers from local voluntary groups supported by an academic researcher. Data collection used semi‐structured interviews based on oral history life stories that focused on health and well‐being. Thematic data analysis and mind maps were used to create a collective narrative. This paper will provide a brief synopsis of the findings from the main themes of health and well‐being, and reflect on the process of consumer involvement in research using oral history. Outputs have included dissemination at a local and national level, increased knowledge and confidence in the research process, and involvement in other related initiatives, such as Local Involvement Networks, partnership working with local libraries and collaboration with the regional archivist.