A logit model of retail investors' individual trading decisions and their relations to insider trades

Among the various external information sources that influence individual investors' trading decisions, no research has considered the important influence of insiders' transactions. Retail investors might copy the behavior demonstrated by insiders' trading; therefore, this study establishes an approach to estimate the buying probability for a certain stock by a certain investor at a certain point in time and analyzes whether insider trade reports influence this probability. Using a sample of more than 270,000 retail trades in Germany between 2008 and 2009, along with more than 3000 insider trades in the same period, we find evidence of copying of insiders' trades by retail investors. The basic mimicry hypothesis holds, even when we consider an information event hypothesis and an insider attention effect hypothesis as alternative explanations. A robustness test also supports the findings.     

Principles for sustainability rating of investment funds

During the last decade, the idea of sustainable investments hit the market. Investors both private and institutional started to supplement financial considerations with social and ecological ones. Meanwhile the supply of mutual funds in the ‘green’ investment sector increased enormously. Currently in Europe about 300 mutual funds are available that are managed according to sustainability and social responsibility. Potential investors face the difficulty of keeping track of the various funds and choosing among them based on a reliable comparative assessment. This paper outlines the basic principles and methods on which such a comparative sustainability rating is based. The method was designed to be analogous to rating of the funds financially. The sustainability rating is based on assessment of the research processes in the fund management as well as investigation of the fund portfolio in terms of composition and sustainability performance. It should support investors in their investment choices by offering them a third party view. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

Randomized algorithms for statistical image analysis and site percolation on square lattices

We propose a novel probabilistic method for detection of objects in noisy images. The method uses results from percolation and random graph theories. We present an algorithm that allows to detect objects of unknown shapes in the presence of random noise. The noise density is assumed to be unknown and can be very irregular. The algorithm has linear complexity and exponential accuracy, and is appropriate for real‐time systems. We prove results on consistency and algorithmic complexity of our procedure. © 2013 The Authors. Statistica Neerlandica © 2013 VVS.     

Numerical solution of dynamic equilibrium models under Poisson uncertainty

We propose a simple and powerful numerical algorithm to compute the transition process in continuous-time dynamic equilibrium models with rare events. In this paper we transform the dynamic system of stochastic differential equations into a system of functional differential equations of the retarded type. We apply the Waveform Relaxation algorithm, i.e., we provide a guess of the policy function and solve the resulting system of (deterministic) ordinary differential equations by standard techniques. For parametric restrictions, analytical solutions to the stochastic growth model and a novel solution to Lucas' endogenous growth model under Poisson uncertainty are used to compute the exact numerical error. We show how (potential) catastrophic events such as rare natural disasters substantially affect the economic decisions of households.     

Die Kontroverse um die demokratischen Potenziale der interaktiven Informationstechnologien — Positionen und Perspektiven

Along with the shift towards a digital information society, new possibilities for communication and cooperation open up in almost all areas. They put traditional procedures up for consideration. In light of this, the question of the perspectives of mass democracy (primarily dealt with at the interface of political and communication science) obtains a new significance and new facets. This article critically reviews the major lines of argumentation of the controversy that has been fought out over the democratic potential of interactive information technologies since the beginning of the nineties. The author also wants to draw attention to the pragmatic rather than the theoretical aspects of a convergence of the opposing camps. He also wants to broaden the perspective of research in the field.     

The development of consulting in goods-based companies

The article focuses on the developments in several B2B companies which traditionally produce goods and based on this experience are trying to enter the business of management consulting. It is the aim of the paper to identify the specific challenges that these companies are facing regarding marketing and selling their management consulting services. Furthermore hypotheses are developed that should give direction how to overcome those challenges successfully. Due to the lack of current research results, an explorative case study approach is chosen referring to two companies from the IT industry having gained relevant experience in this business area. In addition, theoretical frameworks demonstrate the plausibility of the hypotheses developed. If further research supports these hypotheses, it will have significant impact on the market strategy, marketing communication and sales organization of companies going to increase their consulting services.     

The impact of venture capital on family businesses: Evidence from Spain

We analyzed growth in family and non-family Spanish venture capital-backed firms. When the venture capital (VC) firm does not hold a majority stake, the usual risk aversion attitudes in family firms may lead to conflicts between the management cultures of the existing and new shareholders, which may affect growth. We found lower firm growth after the initial round in family firms only when the investor holds a minority stake. Our results may explain the under-representation of family firms in VC portfolios and highlight the need to align the objectives of family managers and VC investors before the initial VC round.     

What Europe Needs Is an Innovation‐Driven Entrepreneurship Ecosystem: Introducing EDIE

With entrepreneurial and innovation ecosystems appearing in geographic pockets around the world in diverse places and pockets of growth, the call for an entrepreneur‐driven innovation ecosystem (EDIE) in Europe is long overdue. Change remains a constant, and traditional industries and mature markets in Europe have left a vacuum in the path to economic growth. The need for a new model is immediate. If Europe is to find itself providing competitive leadership in the global business environment, a new philosophy is necessary to move forward in the twenty‐first century. This is the thinking behind the imperative for an EDIE in Europe, which is presented in this article as a result of a long established effort to awaken a European response to an increasingly contracting environment. © 2015 Wiley Periodicals, Inc.