Variance-ratio Statistics and High-frequency Data: Testing for Changes in Intraday Volatility Patterns

Variance-ratio tests are routinely employed to assess the variation in return volatility over time and across markets. However, such tests are not statistically robust and can be seriously misleading within a high-frequency context. We develop improved inference procedures using a Fourier Flexible Form regression framework. The practical significance is illustrated through tests for changes in the FX intraday volatility pattern following the removal of trading restrictions in Tokyo. Contrary to earlier evidence, we find nodiscernible changes outside of the Tokyo lunch period. We ascribe the difference to the fragile finite-sample inference of conventional variance-ratio procedures and a single outlier.     

On a property of orthogonal arrays and optimal blocking of fractional factorial plans

It is shown that fractional factorial plans represented by orthogonal arrays of strength three are universally optimal under a model that includes the mean, all main effects and all two-factor interactions between a specified factor and each of the other factors. Thus, such plans exhibit a kind of model robustness in being universally optimal under two different models. Procedures for obtaining universally optimal block designs for fractional factorial plans represented by orthogonal arrays are also discussed. Acknowledgements. The authors wish to thank the referees for making several useful comments on a previous version.     

Spiritual Climate of Business Organizations and Its Impact on Customers’ Experience

This study examines the notion of ‹spirituality’ as a dimension of human self, and its relevance and role in management. Major thesis of this research is that spirituality of employees is reflected in work climate. This may in turn affect the employees’ service to the customers. In the first part of the study a Spiritual Climate Inventory is developed and validated with the data from manufacturing and service sector employees. In the later part, hypothesis of positive impact of spiritual climate on customers’ experience of employees’ service is examined and found to be substantiated empirically.

The commercial contribution of clinical studies for pharmaceutical drugs

Pharmaceutical drugs are rigorously evaluated through clinical studies. The commercial consequences of such clinical studies, both to the promotion for and sales of drugs, are largely under-researched. The present study answers the following research questions: 1) How does the evolution of clinical study outcomes affect product sales? 2) How does the evolution of clinical study outcomes affect a firm's promotion expenditures to physicians and consumers? 3) Is the assessment of the responsiveness of sales to promotion expenditures biased when the analyst omits the role of clinical studies? We summarize a comprehensive body of clinical studies in three metrics: valence, dispersion, and volume. We extend the literature with the following findings. A higher valence and volume of clinical studies (i.e., more positive and larger number of studies) increase sales. A higher valence of clinical studies increases spending on both direct-to-consumer advertising and direct-to-physician promotion. A higher dispersion among clinical studies decreases spending on direct-to-consumer advertising. A higher volume of clinical studies has no effect on direct-to-physician promotion, but decreases direct-to-consumer advertising. Furthermore, the results show that omitting these metrics from a market response model leads to an overestimation of the responsiveness of sales to promotion expenditures.     

How Yoga-Based Practices Build Altruistic Behavior? Examining the Role of Subjective Vitality,Self-transcendence,and Psychological Capital

Journal of Business Ethics - Broader outlook, ethics, and social responsibility have been long-standing concerns in business practices and management. In this regard, an effective management...     

Developing measures of airport productivity and performance: an application of data envelopment analysis

Many studies have investigated the financial results and economic productivity of airlines but few have investigated the productivity or performance of airports, and how changes in the industry may have affected them. Most airports measure performance strictly in accounting terms by looking at only total costs and revenues and the resulting surpluses or deficits. Few utilize any type of productivity measure or performance indicator. This paper applies Data Envelopment Analysis to assess the performance of airports. It is used to construct performance indices on the basis of the multiple outputs which airports produce and the multiple inputs which they utilize. In particular we develop productivity measures for terminals and airside operations. The performance measures are then used in a second stage Tobit regression in which environmental, structural and managerial variables are included. The regression results provide a ‘net’ performance index and also identify which variables the managers have some control over and what the relative importance of each variable is in affecting performance. The data set contains a panel of 21 U.S. airports over a five-year period.     

Soil Erosion Assessment in a Hilly Catchment of North Eastern India Using USLE, GIS and Remote Sensing

In the present study, soil erosion assessment of Dikrong river basin of Arunachal Pradesh (India) was carried out. The river basin was divided into 200 × 200 m grid cells. The Arc Info 7.2 GIS software and RS (ERDAS IMAGINE 8.4 image processing software) provided spatial input data and the USLE was used to predict the spatial distribution of the average annual soil loss on grid basis. The average rainfall erositivity factor (R) for Dikrong river basin was found to be 1,894.6 MJ mm ha⁻¹ h⁻¹ year⁻¹. The soil erodibility factor (K) with a magnitude of 0.055 t ha h ha⁻¹ MJ⁻¹ mm⁻¹ is the highest, with 0.039 t ha h ha⁻¹ MJ⁻¹ mm⁻¹ is the least for the watershed. The highest and lowest value of slope length factor (LS) is 53.5 and 5.39 respectively for the watershed. The highest and lowest values of crop management factor (C) were found out to be 0.004 and 1.0 respectively for the watershed. The highest and lowest value of conservation factor (P) were found to be 1 and 0.28 respectively for the watershed. The average annual soil loss of the Dikrong river basin is 51 t ha⁻¹ year⁻¹. About 25.61% of the watershed area is found out to be under slight erosion class. Areas covered by moderate, high, very high, severe and very severe erosion potential zones are 26.51%, 17.87%, 13.74%, 2.39% and 13.88% respectively. Therefore, these areas need immediate attention from soil conservation point of view.     

Pharmacy layout: What are consumers' perceptions?

The physical layout of a retail pharmacy can play a significant role in the development of the customers' perceptions which can have a positive (or negative) impact on its sales potential. Compared to most general merchandise stores, pharmacies are more concerned about safety and security issues due to the nature of their products. This paper will discuss these aspects as well as the physical and professional environments of retail pharmacies that influence the perceptions of customers and how these vary whether chain, independent, or hospital pharmacies.     

Child Labour in the Philippines: Determinants and Effects

This paper analyses the supply-side socioeconomic determinants of child labour in the Philippines using data from the National Household Survey and the Labour Force Survey of the Philippines. The research methodology is that of a sequential probit model which assumes that household decisions are made in a hierarchical manner. Using this model, the impact of various household and economic characteristics on the probability of child labour is estimated. The findings highlight specific populations that should be targeted, for example, single working mothers in urban areas and poor households in rural areas. Working towards elimination of child labour will involve a multi-angled policy approach with policies complementing each other.