Contents of Volume 8 2001

Volume Contents

Contents of Volume 8 2001     

Duration, factor sensitivities, and interest rate Greeks

In this paper, we introduce for interest rate sensitive assets the natural analogs of delta and gamma for equity options by considering the derivatives of asset prices with respect to the directions along which the forward rate curve may evolve. Macaulay duration and convexity, as well as stochastic duration considered in Cox et al. (J Business 52:51–61, 1979) and Munk (Rev Derivat Res 3:157–181, 1999), are easily obtained as special cases of these in which the derivatives are computed along parallel shifts and the direction of the forward rate volatilities, respectively. Moreover, we demonstrate using the example of the Ritchken and Sankarasubramanian (Math Financ 5:55–72, 1995) model that the hedging strategy based on these sensitivity measures provides a superior performance in comparison to the traditional duration based hedging approaches.      

MEASURING SPILLOVER EFFECTS OF SHOCKS TO THE ALASKA ECONOMY: AN INTER-REGIONAL SOCIAL ACCOUNTING MATRIX (IRSAM) MODEL APPROACH

An inter-regional social accounting matrix (IRSAM) model is used to estimate the spillover effects occurring between economies of two US regions – (i) Alaska, which depends heavily on imports of commodities and factors of production from outside the region, and (ii) the rest of the US (RoUS). Multiplier decomposition is used to calculate intra-regional multipliers and spillover effects between the two regions. Results show that a significant percentage (46.3–70.8%) of the total secondary impacts of a shock to Alaskan industries leaks out of Alaska and flows to the RoUS. An analysis of household multipliers indicates that over 60% of the total secondary effects of an increase in Alaska household income accrues to the RoUS households. Policymakers are concerned with identifying the magnitude, nature, and geographic distribution of economic impacts from the policies they implement. The IRSAM model provides the framework for a better understanding of the intra-regional and spillover effects of policies.     

Management of frontline financial sales personnel

The employee turnover rate within the financial services industry is one of the highest among all industries. Studies demonstrate that a salesperson’s organizational commitment and propensity to leave are impacted by job satisfaction and emotional exhaustion. This study examines the relationships among emotional exhaustion, organizational commitment, propensity to leave and the facets of job satisfaction. Findings support that: (i) financial services salespeople’s propensity to leave is influenced by emotional exhaustion, (ii) emotional exhaustion is mediated by multi-faceted job satisfaction in predicting organizational commitment and (iii) the facets of job satisfaction are, in part, mediated by organizational commitment in predicting propensity to leave.     

Government Policy and Trajectories of Radical Innovation in Dirigiste States: A Comparative Analysis of National Innovation Systems in France and Korea

Contrary to the argument that radical innovation is only compatible with institutional arrangements characteristic of liberal market economies, this paper shows how state-led economies successfully organize their innovation systems to promote radical innovation with a comparative analysis of two dirigiste states, France and Korea. The authors further analyse how government policies under similar institutional arrangements drive different trajectories of radical innovation, as illustrated by their relative competitiveness in the ICT sector. The two dirigiste economies have undergone substantial institutional changes adapting to globalization but sustained state initiatives in coordinating their relationship-based innovation systems, reinforcing the cooperation among the state, academia and industry.     

EXPLORING EXPENDITURE‐BASED SEGMENTATION FOR RURAL TOURISM: OVERNIGHT STAY VISITORS VERSUS EXCURSIONISTS TO FEE‐FISHING SITES

About three fourths of new small tourism businesses fail within the first few years of operation mainly due to poor identification and lack of knowledge of their markets. While understanding visitor spending pattern is critical for the market to be economically viable and successful, research on rural tourist spending behavior is lacking in the literature. Therefore, the purpose of this study was to explore a visitor segmentation approach based on rural visitor spending behavior. Multiple regression analysis suggested accommodation attribute as the most useful predictor for visitor spending. Two subgroups were developed using accommodation type as a segmentation criterion—overnight stay visitors versus short excursionist. Comparative analyses were done using socio‐demographic variables, trip behavior, recreational motivation, and activity preferences. Overnight stay visitors and short excursion group showed significant differences on several behavioral and motivation variables. Practical suggestions are provided for attracting tourists to rural tourism destinations.     

Time–Space Movement of Festival Visitors in Rural Areas Using a Smart Phone Application

The purpose of this study is to analyse the tourists’ spatiotemporal behaviour at the rural festival using the theory and tracking methods of time geographies and the smart phone application based on global positioning system data. Main results show that most festival tourists visit only the entrance and central spaces, walking along on the same paths, while only a small number of visitors visit the regional commercial area, including the traditional market, main streets in the downtown area, although their tickets allow them to visit these spaces. Based on the time and space density analysis, this study draws the time–space aquarium of the Sancheoneo Ice Festival and can find a spatiotemporal concentration and limitation of socio-economic sustainability in rural tourism using festival as a development booster. Therefore, festival planners and policy-makers should focus on these limited spatial movement patterns and temporal flows of visitors in community-based tourism.     

Doing right,investing right: Socially responsible investing and shareholder activism in the financial sector

In this article, we present an overview of corporate social responsibility (CSR) in the financial sector. We focus on how socially responsible investment and shareholder activism have been integral parts of corporate social responsibility in the financial sector. We examine how the financial sector and its firms are evaluated and rated via a sustainability index, the Dow Jones Sustainability World Index, and show that even leading financial institutions do not employ proactive practices regarding socially responsible investment and shareholder activism. Finally, we provide examples of two companies, UBS AG and the Co-operative Banking Group, that do utilize proactive practices.