The evolution of price discovery in us equity and derivatives markets

This study considers the evolution of price discovery in the S&P 500 E-mini futures and the corresponding exchange traded fund (SPY ETF) over the period January 2002 through December 2013. The study reports evidence that the E-mini futures dominate price discovery at the beginning of the sample period. However, from 2007 onward both the SPY ETF and E-mini futures contribute similar portions to the price discovery process. The level of price discovery is significantly influenced by volume measures and relative levels of transaction costs for both securities.     

Absorbing knowledge in the digital age: the key role of integration mechanisms in the context of crowdsourcing for innovation

The digital age offers unprecedented opportunities for firms to access new knowledge for innovation. Both academics and managers have identified crowdsourcing (CS) as one relevant way to do so. CS for innovation involves outsourcing problem-solving or creative tasks to the crowd. To benefit from CS, absorptive capacity (ACAP) is critical; this can be enhanced by prior knowledge and past experience with a partner. However, in the CS context, firms open themselves up to undefined, anonymous partners through the Internet, hence the development of ACAP becomes more difficult. The literature on ACAP describes how internal integration mechanisms encourage the absorption of knowledge but fails to clearly address the way in which uncommon knowledge is integrated. Although literature has acknowledged the beneficial role of a wider spectrum of influential internal and external mechanisms on uncommon knowledge, few empirical studies have addressed the distinctive effect of these mechanisms on the absorption of anonymous partners’ knowledge. To fill this gap, this study identifies relevant integration mechanisms and how they impact upon different ACAP dimensions in the CS context. Five case studies reveal the distinctive influence of integration mechanisms depending on the nature of the CS activity. Our results extend research on ACAP in the little studied digital open context, investigating the absorption of uncommon knowledge from unidentified partners. From a managerial perspective, this study shows that managers need to pay attention to integration mechanisms in order to support the absorption of knowledge from the crowd. More precisely, our study suggests that the main focus should not be on external mechanisms, but also on internal mechanisms. Finally, we open up a new theoretical debate on how these mechanisms should be combined.     

Representations of Australia in South Korean online news: a qualitative and quantitative approach utilizing Leximancer and Korean keywords in context

This article outlines original empirical research using a quantitative computer-assisted big data approach to survey and evaluate the representation of Australia in popular South Korean online news media sources. This is an exploratory content analysis of news reporting (in Korean and English) on Australia in key Korean digital news media providers and distributors over a six-month-period during which certain key events occurred that drew Korean news media attention to Australia. The research aims to address the fundamental question: what forms and patterns of representation of Australia are present in South Korean online news media? It is designed in large part to understand how Australia is present as a theme in Korean online news, and how this theme is contextualized by associated topics, such as trade, security, or tourism. The quantitative analysis is augmented using a qualitative method: a series of key informant interviews conducted with editors and journalists responsible for the production and prioritization of news. Further, it is interpreted by locating the research in the context of the Australia-South Korea relationship. We summarize the complexities that arise when analyzing large amounts of textual content, especially from two very different languages, discuss the opportunities that arise from mixed methods—by combining big data (breadth) with contextual analysis (depth) and offer suggestions for aspiring researchers.     

Optimal Monetary Policy in an Operational Medium‐Sized DSGE Model

We show how to construct optimal policy projections in Ramses, the Riksbank’s open‐economy medium‐sized dynamic stochastic general equilibrium model for forecasting and policy analysis. Bayesian estimation of the parameters of the model indicates that they are relatively invariant to alternative policy assumptions and supports our view that the model parameters may be regarded as unaffected by the monetary policy specification. We discuss how monetary policy, and in particular the choice of output gap measure, affects the transmission of shocks. Finally, we use the model to assess the recent Great Recession in the world economy and how its impact on the economic development in Sweden depends on the conduct of monetary policy. This provides an illustration on how Rames incoporates large international spillover effects.     

INFLATION STABILIZATION AND NOMINAL ANCHORS

This paper analyzes the choice of a nominal anchor in disinflation programs in chronic inflation countries. Both theory and evidence suggest several conclusions. (i) The recessionary effects associated with disinflation appear in the early stages of money-based programs but only in the late stages of exchange rate-based programs. (ii) Lack of credibility is more disruptive under fixed exchange rates than under floating exchange rates. (iii) Attempting to pursue a disinflationary policy while maintaining a given level of the real exchange rate is likely to be self-defeating. (iv) A high degree of currency substitution favors the exchange rate as the nominal anchor.     

Stradin: A Strategic Dynamic and Interactive Decision-Making Process

This article proposes a new strategic decision-making process: Stradin. Stradin uses recent developments in computerized network systems and user-friendly interfaces in order to address management challenges of corporations of the 1990s. Five strategic challenges are addressed: (1) finding the right balance in the centralization-decentralization dilemma; (2) conciliating strategic decisions and their operational implementation; (3) finding a balance between role differentiation and integration; (4) using conflict constructively in order to improve decision making; (5) conciliating emerging strategies and continuity. The article below discusses each of these challenges and shows how Stradin can help in meeting them.     

Who's afraid of that ad? Applying segmentation to the protection motivation model

The protection motivation model has contributed usefully to researchers' understanding of fear appeals in advertising. However, the empirical evidence reported to date in the literature has been mixed. This article proposes and tests a revised model including two segmenting variables as a means to resolve some of the differences evident in past research. With the use of data derived from an experimental study of juveniles' response to a range of antismoking advertising treatments, empirical support was found for the mediating role of fear in predicting behavioral intentions and for the influence of individual differences. The results, however, did not confirm the moderating role of response or self‐efficacy. Future research is clearly needed to further validate the revised protection motivation model. © 2004 Wiley Periodicals, Inc.