Gold and US sectoral stocks during COVID-19 pandemic

In this study, we examine the hedging relationship between gold and US sectoral stocks during the COVID-19 pandemic. We employ a multivariate volatility framework, which accounts for salient features of the series in the computation of optimal weights and optimal hedging ratios. We find evidence of hedging effectiveness between gold and sectoral stocks, albeit with lower performance, during the pandemic. Overall, including gold in a stock portfolio could provide a valuable asset class that can improve the risk-adjusted performance of stocks during the COVID-19 pandemic. In addition, we find that the estimated portfolio weights and hedge ratios are sensitive to structural breaks, and ignoring the breaks can lead to overestimation of the hedging effectiveness of gold for US sectoral stocks. Since the analysis involves sectoral stock data, we believe that any investor in the US stock market that seeks to maximize risk-adjusted returns is likely to find the results useful when making investment decisions during the pandemic.     

Post-script—Retail forecasting: Research and practice

This note updates the 2019 review article “Retail forecasting: Research and practice” in the context of the COVID-19 pandemic and the substantial new research on machine-learning algorithms, when applied to retail. It offers new conclusions and challenges for both research and practice in retail demand forecasting.     

Covid-19-tested food labels

While the transmission of virus SARS-CoV-2 via food is rare, some Chinese food retailers are considering a Covid-19-tested food label. However, how consumers may support such a label is unknown. We quantify Chinese consumers’ willingness to pay (WTP) for food carrying a Covid-19-tested label using an online choice experiment. We find that the WTPs for such a label are always positive for all food products considered. The amount of WTP depends on the entities authenticating the labels, country of origin of the food, and consumers’ socio-demographic status. Contrary to expectation, the knowledge on Covid-19 does not affect consumer preferences for the Covid-19-tested food labels. Our benefit and cost analysis suggests a possible large benefit of creating and administering a Covid-19-tested food label. This study provides insights for policymakers, global food manufacturers, and retailers to create marketing strategies to alleviate consumer food safety concerns associated with Covid-19.     

Balancing risk with virtual private networking during a pandemic

When the pandemic struck and teaching went online worldwide, universities had to make pressing decisions that balanced cybersecurity against other factors, including health and safety, usability, and cost. One such challenge Indiana University (IU) faced was how to accommodate the secure telecommunications needs of 130,000 faculty, staff, and students who would now be teaching, learning, doing research, and working from home. Some universities reflexively promoted virtual private network (VPN) use for all activities. Such an approach would have been unsustainable at IU, however, owing both to the licenses and resources needed for the sheer number of users and to the high-throughput applications on which they rely. Perhaps even worse, it would have increased the chances that the VPN would be unavailable during a critical incident or other situation in which secure communications must be guaranteed. Instead, IU launched an awareness campaign demonstrating exactly when VPN use is and isn’t needed. In addition, network staff employed a VPN feature called split tunneling to reduce the load. This article discusses the advantages and disadvantages of this approach and how IU made the decision to balance both sides of the risk equation to ensure the continued advancement of its mission throughout the pandemic.     

疫情背景下航空维修业发展方向探索

我国的社会经济一直在持续发展,在这种基础上航空技术也更加成熟,中国航空维修业也获得了一定的发展。论文主要简要地介绍了国内民航维修业的特点,初步探讨了疫情背景下民航维修业在未来发展中的应对思路,希望可以给大家带去一些启发。     

Learn from the past and prepare for the future: A critical assessment of crisis management research in hospitality

Given the substantial impact of crisis on the hospitality industry, crisis and crisis management have drawn attention from scholars. While each study makes a significant contribution to the existing knowledge of crisis management in hospitality, the fragmented perspective of each study makes it difficult to identify the key findings and unsolved problems. This paper presents a synthesis and critical assessment of state-of-the-art crisis management research in hospitality. It categorizes articles based on a three-stage framework covering pre-crisis planning, mid-crisis management, and post-crisis recovery. Two main perspectives in the literature are identified: one from hospitality service providers and one from stakeholders. Core research topics and concepts in each stage and perspective are reviewed. In addition, this paper proposes four major directions for future research: crisis management from stakeholders’ perspectives, integrative research, causal and behavioral research, and theoretical enhancement. It discusses the theoretical and practical implications of this study.     

Product line transformation,foreign sales,and firm value: Evidence from COVID-19 pandemic governance in urban China

Using a sample of Chinese firms, we examine stock market reaction to firms that announce a change in their product lines to those related to COVID-19 management (medical masks and ventilators, among others). We find the market reacts positively to the announcements. In addition, when a firm ordinarily has a large share of export sales, the stock market reaction is more salient, indicating that export sales provide a certification effect that positively signals investors. Additional analysis on moderating effects suggest that, conditional on foreign sales, prior experience with medical product lines or less uncertainty about supply availability enhances the cumulative announcement returns (CARs), while the adverse impact of firm size on CAR magnifies.     

Business-to-business selling in the post-COVID-19 era: Developing an adaptive sales force

The COVID-19 pandemic has changed how salespeople interact with customers and with business-to-business (B2B) organizations. Organizations must confront the shifts in how their salespeople operate. Recent research recommends firms develop an adaptive sales force to address disruptions like a pandemic and be prepared to meet such challenges in the future. Based on interviews with marketing and sales executives, we explore how firms have responded to these interconnected changes during the COVID-19 pandemic and offer insight into best practices deployed across industries.     

The impact of COVID-19 on the G7 stock markets: A time-frequency analysis

We examine the co-movement of the G7 stock returns with the numbers of confirmed COVID-19 cases and causalities based on daily data from December 31, 2019 to November 13, 2020. We employ the wavelet coherence approach to measure the impact of the numbers of confirmed cases and deaths on the G7 stock markets. Our findings reveal that both the number of confirmed COVID-19 cases and the number of deaths exhibit strong coherence with the G7 equity markets, although we find heterogeneous results for the Canadian and Japanese equity markets, in which the numbers of COVID-19 cases and the deaths exhibit only a weak relationship. This evidence is more pronounced in the long-term horizon rather than the short-term horizon. Moreover, the lead-lag relationship entails a mix of lead-lag relations across different countries. We present the implications of these findings for both policymakers and the international investment community.     

How have the dependence structures between stock markets and economic factors changed during the COVID-19 pandemic?

This study investigates how the dependence structures between stock markets and economic factors have changed during the COVID-19 pandemic using the dynamic model averaging approach. A series of economic factors such as commodity markets, cryptocurrency, monetary policy, international capital flows, and market uncertainty indices are considered. We find that the importance of economic variables and the sign and size of their coefficients are significantly different from those before the COVID-19 pandemic. The stock markets are most influenced by economic factors during the COVID-19 outbreak.