Macroeconomic determinants of stock volatility and volatility premiums

How does stock market volatility relate to the business cycle? We develop, and estimate, a no-arbitrage model, and find that (i) the level and fluctuations of stock volatility are largely explained by business cycle factors and (ii) some unobserved factor contributes to nearly 20% to the overall variation in volatility, although not to its ups and downs. Instead, this “volatility of volatility” relates to the business cycle. Finally, volatility risk-premiums are strongly countercyclical, even more than stock volatility, and partially explain the large swings of the VIX index during the 2007–2009 subprime crisis, which our model captures in out-of-sample experiments.     

Different approaches to measure ego-centered social support networks: a meta-analysis

Survey indicators of social networks usually measure a certain function of social networks, for example exchange of social support. Social support is a multidimensional construct. The most comprehensive definition distinguishes among sources of social support (social support networks), supportive acts and appraisal of given support. Generally, two main hypotheses can be given with regard to the role social support plays in quality of life of individuals: that social support is beneficial as such (main effects), or that social support is beneficial at occasions of stressful events (buffer effect). In this paper we are dealing with survey measurement of ego-centered social support networks. Three methods to social network measurement are compared: the name generator method, the role generator method and the event-related approach. In a meta-analysis of several studies done on convenient quota samples the effects of method, type of calculation, response format and limitation of support providers on network composition indicators are studied.     

Corporate governance and regulation: Can there be too much of a good thing?

We investigate how company-level corporate governance practices and country-level legal investor protection jointly affect company performance. We find that in any legal regime there are a few specific governance practices that improve performance. Companies with good governance practices operating in stringent legal environments, however, show a valuation discount relative to similar companies operating in flexible legal environments. At the same time, a stronger country-level regime does not reduce the valuation discount of companies with weak governance practices. Our analysis suggests a threshold level of country development above which stringent regulation hurts the performance of well governed companies or has a neutral effect for poorly governed companies.     

Value stream mapping implementation in the third sector

An analysis of the development of non-profit organizations highlights critical issues related to the efficiency and strategic capacity of many organizations. To do this, it is necessary to use management models that combine the effectiveness of social solidarity with acceptable levels of efficiency. This study focuses on the application of Value Stream Mapping (VSM) to reorganize the work placement service in one of Italy??s major third sector organizations. A telephone survey, administered to 184 diocesan counseling services, provided an exhaustive overview of the macro-environment and the work placement service features. The process re-engineering is dealt with by an interdisciplinary approach. Implementing the Allison and Kaye model provides an approach specific to non-profit organizations. Furthermore, the use of VSM in the strategic planning enriches the model itself and provides a practical and pragmatic approach typical of re-engineering that focuses on the organization??s objectives. VSM allows the identification of the critical points in the value flow chain, and the suggested actions support the development of the work placement service.     

Do inter-sectoral flows of services matter for productivity growth? an input/output analysis of OECD countries

This article investigates the impact of technology-intensive services sectors on direct and indirect labour coefficients in a sample of OECD countries. We find that both domestic and imported services contribute to increase productivity. We also find that different service industries (transport, communication, financial, and business services) have a different impact on technological change in non-service sectors classified according to the Pavitt taxonomy.     

Subsidiary’s Network Competence: Finnish Multinational Companies in Russia

We provide clear insights into the key foreign direct investment obstacles for the manufacturing sector in FYR of Macedonia, an EU candidate country. The survey results, based on data for 79 manufacturing companies, revealed that the investors in this particular sector perceive the bureaucratic and administrative constraints, corruption and bribery, and the lack of law enforcement as three major investment obstacles. Furthermore, we found that the perception of the investment obstacles largely differ depending on the industry the companies operate in, the country of origin, and the export orientation. Therefore, we recommend a tailor-made approach in pursuing the national investment promotion policies and strategies.     

Public awareness promoting new or emerging risks: Industrial accidents triggered by natural hazards (NaTech)

Dramatic natural events recently stroke several countries worldwide. The impact of the natural events on industrial sites often resulted in large releases of hazardous materials, causing severe technological accidents (Natural-Technological or NaTech events). Industrial operators were often found unprepared or off-guard for unannounced events but also when they had received early warnings. Due to these occurrences, public awareness has raised and the issue of NaTech is now considered as an emerging risk. Due to the climate change and increase in the frequency of some categories of natural disasters, the likelihood of NaTech scenarios is growing, thus NaTech may be also considered as a new risk in some areas of the world. In the present study, the process that ended in the awareness of the scientific community and of the general public toward NaTech has been analyzed. Available tools and knowledge gaps in the assessment of NaTech scenarios are evidenced. The analysis is mainly addressed to the potential impact of flood, lightning, and earthquake events on industrial installations where hazardous substances are present, aiming at the identification of strategies to improve the resilience of industrial facilities to technological accidents caused or intensified by natural hazards.     

The relationship between R&D,investment and patents: a panel data analysis

This paper estimates the effect of research and investment activities on patents across countries, industries and over time, using Poisson and negative binomial distribution models. The first result of the paper is the recognition of the importance of investment activities in contributing to technical change. The positive role of research expenditures is also confirmed but its elasticity is found to be lower than in previous studies. Important differences across sectors emerge: research expenditures are found to be more effective in generating patents in science based industries, while investment is particularly significant in supplier dominated and production intensive industries. Finally, in most sectors, the estimated R&D and investment coefficients lie outside the confidence intervals calculated around the pooled coefficients.