The Role of Green Collaborative Strategies in Improving Environmental Sustainability in Supply Chains: Insights from a Case Study

This article aims to quantify to what extent collaborative strategies are more effective than internal or organization‐level actions to green supply chains. In this regard, the impact of decisions made at different stages of a supply chain in a product's carbon footprint is quantified. Organizational and product carbon footprints are calculated using the Compound Method Based on Financial Accounts (MC3). The results underline that concentrating reduction efforts in some stages of the supply chain is more effective than implementing individual actions by the participants. Collaboration among the participants is needed to decide what practices are implemented, at what stage they are needed and how they are to be implemented. This article adds to the literature on supply chains and sustainability. Previous research suggests that collaborative strategies have great potential for reducing the carbon footprint of products, while indicating the need for empirical research to support this statement. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Environmental Policies for Sustainable Development: An Analysis of the Drivers of Proactive Environmental Strategies in the Service Sector

This article examines the drivers of environmental proactivity in the service sector. Hypotheses were tested using multiple hierarchical regression analysis with data from a sample of 41 managers in Spanish environmental consulting companies. Results show statistically significant relationships between (1) managers’ attitude towards sustainable development, (2) positive short‐term firm performance and (3) the strategic attitude of environmental consulting firms and the adoption of proactive environmental strategies by the studied companies. This article is pioneering in the analysis of drivers of corporate proactive environmental strategies in the consultancy sector. The findings have practical implications for policy‐makers, investors and other agents interested in a better management of the environment. Economic incentives such as subsidies to environmental training programmes for managers can induce changes in cognitive components of managers’ attitudes. Education policies could also affect managers’ attitudes towards the environment. Companies may also encourage attitude change by providing their managers with financial assistance to receive environmental training. External assistance to develop a strategic attitude could be an interesting policy to encourage voluntary environmental initiatives. Finally, fiscal deductions, tax breaks or subsidies to those companies interested in managing the environment can be effective incentives for those firms facing a weak short‐term financial situation. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Pricing Contingent Claims on a Risky Asset and Stochastic Interest Rates: A New Discrete Time Approach

This paper presents a new discrete time approach to pricing contingent claims on a risky asset and stochastic interest rates. The term structure of interest rates is modeled so that arbitrage-free bond prices depend on an observable initial forward rate curve rather than an exogenously specified market price of risk. A restricted binomial process is employed to model both interest rates and an asset price. As a result, a complete market valuation formula obtains. By choosing the parameters of the discrete joint distribution such that, in the limit, the discrete model converges to the continuous one, a model is obtained that requires the estimation of only three parameters. The approach is parsimonious with respect to alternative models in the literature and can be used to price contingent claims on any two state variables. The procedure is used to numerically analyze the effects of the volatility of interest rates on the determination of mortgage contract rates.     

Commodity trading advisors' leverage and reported margin‐to‐equity ratios

We investigate the effect of leverage on Commodity Trading Advisors' (CTAs) performance measurement. We find that leverage has important effects on the cross section of CTA returns, volatility, and survival experience. On average, a 100‐basis points increase in leverage is associated with a 27‐basis points increase in returns. After performance is adjusted for leverage, volatility, and survival experience, CTAs' style variables have no significant effect on performance. The amount of leverage used by a CTA is found to reduce the likelihood of survival. However, the total effect of leverage on survival is much smaller than its partial effect. Contrary to common beliefs, we find that CTA diversification leads to higher levels of leverage and volatility. This apparent contradiction is related to how the diversification process affects the use of leverage. The findings in this study have implications for measuring and comparing managers' performance track records. © 2003 Wiley Periodicals, Inc. Jrl Fut Mark 23:1003–1017, 2003     

The rationality of early exercise decisions: evidence from the S&P 100 index options market

This study provides a comprehensive empirical analysis of theearly exercise history of S&P 100 put and call option. Eventhough the S&P 100 index option market is generally consideredto be the most efficient options market in the world, we showthat many exercise decisions are inefficient because they occurwhen recorded bids are greater than exercise values. Due tomarket imperfections, some of the cases of inefficient exerciseare still rational, but we show that a substantial number ofthese decisions are clearly irrational since it would have beenpossible to realize a larger riskless net cash flow by selling.Unlike previous studies of early exercise, our tests of efficiencyand the rational decisions that presumably lead to efficientmarkets are model independent. We also provide evidence concerningthe relative significance of dividends and the wild card toindex option pricing models, and introduce and document theimportance of the option to exercise and avoid the indirectcosts of the spread. We also find evidence of a significantday-of the-week exercise effect, and present some likely explanationsfor that effect.