The evolvement of momentum effects in China: Evidence from functional data analysis

Using an approach based on functional data analysis, we address the controversy that momentum or reversal effect disputes exist in China’s A-shares markets. It finds patterns of nonlinear cross-sectional variation and the dynamic change of average stock returns over time. After the global financial crisis of 2008, our empirical results show that momentum effects in the middle term went away and reversal effects took over. We also find substantial reversal effects for the short- (1-6 months) and long-term (3 years), respectively, but no evidence of permanent momentum effects in China.     

The evolution of language complexity in qualified health claims

In the US, the Food and Drug Administration (FDA) has oversight for qualified health claims (QHCs). These claims emerged as the result of a legal dispute about commercial speech rights on dietary supplements and food products. The initial court ruling allowed manufacturers to include diet–disease information on packaging, when supporting evidence does not meet the traditional threshold of Significant Scientific Agreement. QHCs communicate about a potential health benefit of the consumption of a food or supplement, and due to their nature, are required to specify the balance of evidence behind the diet–disease relationships. As a result, the language contained in QHCs is complex, making them difficult for consumers to understand. The language has been further complicated by a continuing series of court challenges about how scientific evidence is described in QHCs. To understand the evolution of QHC language, we review the progression of court rulings surrounding qualified health claims and subsequent regulations by the FDA. This analysis provides a case study of the challenging task of effective science communication within a dynamic food litigation and policy environment.     

Managerial overload and organization design

This paper considers a firm's choice between a “divisional structure” and a “functional structure.” It shows that an increase in the number of projects which the firm can adopt creates a managerial overload, which favors the divisional structure.     

Dynamic functional time-series forecasts of foreign exchange implied volatility surfaces

This paper presents static and dynamic versions of univariate, multivariate, and multilevel functional time-series methods to forecast implied volatility surfaces in foreign exchange markets. We find that dynamic functional principal component analysis generally improves out-of-sample forecast accuracy. Specifically, the dynamic univariate functional time-series method shows the greatest improvement. Our models lead to multiple instances of statistically significant improvements in forecast accuracy for daily EUR–USD, EUR–GBP, and EUR–JPY implied volatility surfaces across various maturities, when benchmarked against established methods. A stylised trading strategy is also employed to demonstrate the potential economic benefits of our proposed approach.     

Quasi Score is more Efficient than Corrected Score in a Polynomial Measurement Error Model

We consider a polynomial regression model, where the covariate is measured with Gaussian errors. The measurement error variance is supposed to be known. The covariate is normally distributed with known mean and variance. Quasi score (QS) and corrected score (CS) are two consistent estimation methods, where the first makes use of the distribution of the covariate (structural method), while the latter does not (functional method). It may therefore be surmised that the former method is (asymptotically) more efficient than the latter one. This can, indeed, be proved for the regression parameters. We do this by introducing a third, so-called simple score (SS), estimator, the efficiency of which turns out to be intermediate between QS and CS. When one includes structural and functional estimators for the variance of the error in the equation, SS is still more efficient than CS. When the mean and variance of the covariate are not known and have to be estimated as well, one can still maintain that QS is more efficient than SS for the regression parameters.     

Growth-equity decomposition of a change in poverty: An axiomatic approach

This paper studies a class of subgroup decomposable poverty measures whose changes may be decomposed into a growth component and a redistribution component. A set of reasonable axioms leads inexorably to a combination of the Watts measure and the poverty gap measure.     

Functional Land Management for managing soil functions: A case-study of the trade-off between primary productivity and carbon storage in response to the intervention of drainage systems in Ireland

Globally, there is growing demand for increased agricultural outputs. At the same time, the agricultural industry is expected to meet increasingly stringent environmental targets. Thus, there is an urgent pressure on the soil resource to deliver multiple functions simultaneously. The Functional Land Management framework (Schulte et al., 2014) is a conceptual tool designed to support policy making to manage soil functions to meet these multiple demands. This paper provides a first example of a practical application of the Functional Land Management concept relevant to policy stakeholders. In this study we examine the trade-offs, between the soil functions ‘primary productivity’ and ‘carbon cycling and storage’, in response to the intervention of land drainage systems applied to ‘imperfectly’ and ‘poorly’ draining managed grasslands in Ireland. These trade-offs are explored as a function of the nominal price of ‘Certified Emission Reductions’ or ‘carbon credits’. Also, these trade-offs are characterised spatially using ArcGIS to account for spatial variability in the supply of soil functions.To manage soil functions, it is essential to understand how individual soil functions are prioritised by those that are responsible for the supply of soil functions – generally farmers and foresters, and those who frame demand for soil functions – policy makers. Here, in relation to these two soil functions, a gap exists in relation to this prioritisation between these two stakeholder groups. Currently, the prioritisation and incentivisation of these competing soil functions is primarily a function of CO₂ price. At current CO₂ prices, the agronomic benefits outweigh the monetised environmental costs. The value of CO₂ loss would only exceed productivity gains at either higher CO₂ prices or at a reduced discount period rate. Finally, this study shows large geographic variation in the environmental cost: agronomic benefit ratio. Therein, the Functional Land Management framework can support the development of policies that are more tailored to contrasting biophysical environments and are therefore more effective than ‘blanket approaches’ allowing more specific and effective prioritisation of contrasting soil functions.     

Drivers to Nurturance: Application and Extension of FWB in India

The purpose of this paper is to investigate the factors influencing the choice of healthier foods in India through observation of 250 consumers in a feast arranged with most of the millet-based food items, followed by a focus group study of nine selected consumers from the feast. Although much of the work about healthier food choices have been done in the western countries, their replication is not possible for the Indian consumers due to the differences in perception, culture, and consumption patterns. This paper attempts to highlight the importance of indigenous culture of a land in influencing one’s food choice. The findings of the qualitative study match with the Food as Well Being (FWB) dimensions proposed by Block et al., 2011 Block, L. G., Grier, S. A., Childers, T. L., Davis, B., Ebert, J. E., Kumanyika, S., … &; Pettigrew, S. (2011). From nutrients to nurturance: A conceptual introduction to food well-being. Journal of Public Policy &; Marketing, 30(1), 5–13.[Crossref], [Web of Science ®] , [Google Scholar]. Food perception emerged as another important factor from this study and furthermore an extended model of FWB is proposed for the Indian consumers.     

A structural analysis of business-to-business digital markets

Digital markets allow sellers and buyers to conduct transactions electronically and are becoming major driving forces in business-to-business e-commerce. This article explores the theoretical and managerial foundations of digital markets. This study first investigates the structure and components of digital markets. A comprehensive sample of 196 digital markets is then examined to uncover the structural dimensions and success factors of digital markets. The findings of this study provide important managerial insights into various issues that are pertinent to the functioning of digital markets, such as how the nature of founding companies may affect the dominant function chosen for a digital market and what factors may affect the market-making mechanisms used by the digital markets.     

A meta-design approach to agroindustrial buildings: A case study for typical Italian wine productions

The study is part of a wider research aiming at defining building design criteria for small and medium-sized wine-growing and producing farms. The goal of this paper is to work out and validate a specific meta-design process, suitable to lead to the definition of possible layout solutions optimized in terms of functional requirements. The production process has been resolved into two macro-phases, in their turn composed of sections consisting of various series of operations and functions. The in-depth analyses performed on the spatial requirement of these operations and functions allowed to define the functional areas and spatial units suitable for building design. Finally, their functional and spatial relations were analysed through flow charts and matrix approach. The results allowed us to outline examples of possible layout solutions.