An empirical examination of the pricing of exchange‐traded barrier options

Actively traded barrier options were introduced on the Australian Stock Exchange in 1998. This market provides a unique laboratory in which to empirically examine their pricing. This is particularly so given that, for a number of these options, otherwise identical standard European options were simultaneously traded. As a result, the pricing of barrier options may be compared both with their theoretical valuations and with the pricing of otherwise identical European options. © 2004 Wiley Periodicals, Inc. Jrl Fut Mark 24:1049–1064, 2004     

The consumer-driven approach: defining and measuring success

Employers' reluctance to implement consumer-driven health plans (CDHPs) is at least in part due to their not understanding how to define and measure the success of CDHPs. To assist employers, the authors define potential points of success for CDHPs in the areas of consumer engagement, consumer financial considerations and employee health and productivity. They then offer ways of measuring success in those areas, as well as in the area of employer cost control. By taking a carefully considered approach to the decision of whether to offer a CDHP, employers can grasp potential opportunities to control health care costs.     

MUTUALITY,PERFORMANCE AND EXECUTIVE COMPENSATION†

ABSTRACTS The determinants of CEO compensation within the UK Building Society sector are investigated. Using an unbalanced panel data set for the period 1986–90, we find only weak support for the existence of a positive link between performance and CEO remuneration. In contrast we find age to be an important determinant of CEO pay increases. This finding reinforces the oft noted potential for inefficiencies in mutuals. Given that alternative market based control systems are absent, our results suggests that there is a lack of any mechanism to align owner and manager interests in the UK building societies.     

Vertical disintegration and the life-cycle of firms and industries

T0he degree of vertical integration experienced by a firm is an important managerial decision variable. It is an issue where there is a distinct lack of unanimity in studies on the economics of organizations. Moreover, studies have tended to ignore the complementary feature of vertical disintegration. This study examines the basic Stigler hypothesis that vertical disintegration is the typical development in growing industries. Using UK data on divestments, the results initially indicated some positive relationship between industry growth and vertical divestment activity; however, when different categories of asset transfer were examined, the Stigler view was rejected in favour of a null hypothesis.     

Informal boundary-spanning communication in the innovation process: an empirical study

The sources of ideas embodied uithln successful technological innovation have been a subject of interest in many studies since the 1950s. This research suggests that sources external to the innovating organization account for between 34% and 65% of the inputs important to the development of successful innovation. In addition, studies have long highlighted personal boundary-spanning communication as an important mechanism for the transference of such ideas. Despite this recognition, there has been little systematic evaluation of the role and importance of informal boundary-spanning communication in the innovation process. This paper provides the results of an empirical study, of the role and source of infomally derived inputs into the development products of 35 commercially successful innovations. It was found that inormal mechanisms were often enlployad to transfer ideas and information, as well as other resources, during the idea-generation, ,problem-solving and field-testing phases of these innovation projects. Indeed, the research indicates that the mobilization of informal boundary-spanning contacts and networks my ofen be an important, and sometimes critival, factor in successful innovation.     

Leveraged Acquisitions and the Market for Corporate Control

What is the function of the market for corporate control? Mike Wright and two colleagues outline the advantages of an active market in corporate control and review the consequences of leveraged buyouts.