Trend derivatives: Pricing,hedging, and application to executive stock options

Both institutional and private investors often have only limited flexibility in timing their investment decision. They look for investments that will ideally be independent of the timing decision. In this article, a new class of derivative products whose payoff is linked to the trend of the underlying instrument is introduced. By linking the trend to the payoff, the timing of the decision becomes less important. Therefore, trend derivatives offer some time‐diversification benefits. How trend derivatives are designed and priced is shown. Due to their peculiar features, trend derivatives offer some interesting applications such as executive stock option plans. © 2007 Wiley Periodicals, Inc. Jrl Fut Mark 27:151–186, 2007     

Service Delivery Encounters in Business-to-Business Contexts as a Source of Innovation – A Conceptual and Explorative Study

This article offers a conceptual and empirical view on the potential for innovation impulses stemming from the supplier-customer interface as a more or less unplanned by-product of customer contact of service companies. The empirical findings support the existence of a considerable innovation potential at the supplier-customer interface. Determinants of this source of innovation are identified and suggestions are made as to how companies can tap this potential. A translation of all German literature titles is provided in parentheses     

The things that belong: a grounded theory study of student categorizations of complex technical artifacts

Technical artifacts play a central role in teaching and learning about technology. The artifact exemplars used in the classroom to illustrate and discuss various technological concepts should therefore be carefully chosen in order to actually support the abstraction and successful transfer of these concepts. Research from the learning and cognitive sciences strongly suggests that this requires an understanding of how students actually perceive and conceptualize various technical artifacts, what similarities, differences and features are most salient and meaningful in their eyes. In this paper, we propose a grounded theory of how students differentiate and relate various complex technical artifacts. The core of our theory is formed by four hierarchically ordered juxtapositions: (1) technology versus non-technology, (2) everyday versus specialized, (3) private versus public, and (4) luxury versus necessity, which divide the realm of technical artifacts into five broad categories: high technology, household technology, public technology, real technology, and no/low technology. Our claim is that these differentiations and categories are generally salient and meaningful for students. Based on the theory of variation, we outline how they might help educators make more informed and systematic selections of exemplar artifacts to use in the classroom.     

Designing a smart information system: the influence of feedback on energy conservation persuasion

ABSTRACT

This study explored whether a smart information system can motivate users to conserve energy in the home environment. Three kinds of feedback information based on user decisions were discussed: emotion feedback with a happy mood, average feedback of a comparison group and ranking feedback within a comparison group. An experiment validated that all the feedbacks had a positive influence on users’ energy conservation performance. Users’ positive attitude toward the social group that they lived in and compared with would increased users’ environmentally friendly behaviours. Finally, several suggestions on the design of energy feedback are provided.     

The impact of strengthening agricultural extension services on women farmers: Evidence from Ethiopia

This paper evaluates the effect of the Rural Capacity Building Project (RCBP), which aimed at promoting growth by strengthening the agricultural service systems in Ethiopia, and by making them more responsive to smallholders’ needs, in particular women farmers. We examine the gender‐differentiated impact of the RCBP using panel data on 1,485 geographically dispersed households in project and control kebeles. We find that women farmers’ access and satisfaction with extension services increased significantly immediately after the start of the project, but that effect did not last into the medium term. The project led to an increase in the adoption of high‐value crop farming, area of land cultivated, and economic participation of household members, benefiting male‐ and female‐headed households equally. Results point to the positive impact of incorporating women's needs and constraints in the design of the agricultural extension system. However, the project was not able to reduce the preexisting gender gap in agricultural outcomes.     

Thematic portfolio optimization: challenging the core satellite approach

In recent years, thematic exchange-traded funds (ETF) have increased in economic significance. Investors in thematic ETFs have more than just financial objectives and gain a non-monetary added value from a thematic portion in their portfolios. Therefore, traditional portfolio optimization models which target only financial criteria cannot suit these investors’ needs anymore. Nevertheless, to account for their thematic interests, investors adapt a core satellite strategy in which conventional core portfolios and thematic satellite portfolios are combined. Thus, these portfolios are separately optimized without further considering inter-portfolio correlation effects. Since modern portfolio theory has originally been established to, inter alia, optimize these correlation effects, portfolios can only be efficient by chance. Therefore, this study targets the correlation effects between conventional and thematic portfolios and uses a tri-criterion thematic portfolio optimization model as an overall framework. Throughout a two-part analysis with tradable ETFs and a simulation with 250,000 draws and 1,750,000 portfolio optimizations performed, the status quo is compared to the tri-criterion model. Quantifying the suboptimality, simulation results show a mean portfolio improvement of 6.23% measured as relative yield enhancement. Further, our analysis concludes that the more narrowly a theme is defined and the more particular it is, relative yield enhancements can increase up to 46.88%.

     

Souveränität und Verantwortung im Mehrebenensystem: Subsidiarität als Leitmotiv?

Wirtschaftsdienst - Der Subsidiaritätsgedanke sollte von den politischen Entscheidungstragenden sowie von im europäischen Mehrebenensystem mitwirkenden Akteur:innen beachtet werden. Dazu...     

Europeanization in Cypriot Borderscapes: Experiencing the Green Line in Everyday Life

ABSTRACT

Despite the EU accession of the Republic of Cyprus in 2004, the “Green Line” dividing Cyprus that was added as a border in 1974 remains an external EU-border between the Republic of Cyprus (RoC) and the Turkish Republic of Northern Cyprus (TRNC), a self-proclaimed state internationally recognized exclusively by Turkey. Pro- and con European attitudes on Cyprus are therefore not recent phenomena, but date back to the start of EU accession negotiations in 1998 and the Annan-Plan for reunification in 2004. These aspects, however, refer to the Turkish-Greek antagonism on the island and the ongoing national tensions that have resulted in violent conflicts since independence in 1960, the establishment of a demilitarized UN Buffer Zone in 1964 and the division of the island in 1974, also cutting through the island’s capital Nikosia/Lefko?a. Drawing on fieldwork from 2004/2005 and 2014/2015 regarding the border’s shifting meanings and pointing to the border as a place where pro- and con-EU-articulations converge, emphasis is placed on the borderscape in Nikosia/Lefko?a that impedes and increases the movement of people and goods. After all, the border is a dividing line that both shapes and exhibits identities. Moreover, it serves as an individual economic resource whilst border-crossings likewise offer benefits. Nevertheless, the border also stands as painful emotional remembrances for people on both sides. The pro- and con-EU attitudes that were dominant when the RoC joined the EU in 2004 have thus been blurred on both sides of the Green Line. The empirical research for this paper has been framed by the question of how this blurring is intertwined with the division of Cyprus and how people are affected by the Green Line as a socio-material and symbolic artefact on the micro-scale of personal feelings, identities and practices.     

It is merely a matter of time: A meta‐analysis of the causality between environmental performance and financial performance

Research on the relationship between corporate environmental performance (CEP) and financial performance (CFP) continuously receives high attention in both general media and academic publications. One central issue concerns the causal effects between the two constructs. Because existing primary literature is characterized by its heterogeneous study designs and mixed empirical evidence, the aim of this paper is to explicitly shed light on the causality effects between CEP and CFP by means of a meta‐analysis of 893 empirical estimates from 142 CEP–CFP studies. Our findings suggest that in the short run (1 year), financial resources can increase a firm's environmental performance as proposed by the slack resources hypothesis; however, the effects disappear in the long run (after more than 1 year). Conversely, increasing environmental performance has no short‐term effect on a corporate financial performance, whereas a firm significantly benefits in the long term, which is in accordance with the Porter hypothesis. Overall, our results show that the causality between environmental performance and financial performance depends on the time horizon.