Governance and stock market performance

This study uses international asset pricing models to investigate the link between the quality of government institutions and the performance of global stock markets. The results demonstrate a significant positive association between stock market performance measures and the quality of the institutional environment. Performance measures examined for the cross-section of countries were the average monthly stock index excess returns and the Sharpe ratio. All measures of performance were adjusted for global and local risk factors known to explain their international variation. The quality of governance is also found to be negatively associated with stock market total risk and idiosyncratic risk, consistent with the notion that stable institutions are linked to reduced variations in equity returns. These findings suggest countries with better-developed governance systems have stock markets with higher returns on equity and lower levels of risk. The results lend support for the view that a precondition for financial market development is the improvement of the institutions which govern the process of exchange.     

Demand for home modifications/specialized features: the case of disabled

Existing research dealing with the presence of modifications in the homes of individuals with disabilities in Canada has found severity of disability to be negatively related to the demand for modifications, a result that appears to be counterintuitive. In this paper, a model is estimated using data from the 1991 Health and Activity Limitation Survey conducted by Statistics Canada. The results show that severity of disability has a strong positive effect on the demand for modifications/specialized features both inside a residence and those used to access a residence.     

The Economic Determinants of the Home Country Bias in Investors' Portfolios: A Survey

In this article, we survey the international portfolio choice literature to investigate why investors choose to bias their portfolios towards domestic equity, even though there are significant gains to diversifying internationally. We focus on three potential explanations. First, we consider if the high proportion of domestic assets in investors' portfolios can be explained by their desire to hedge home inflation. While the models of Krugman (1981), Sercu (1980), Adler and Dumas (1983), and Stulz (1981a, 1983) suggest that this is the case, the model in Uppal (1993) shows that this is true only when relative risk aversion is less than one. Second, we consider the prevailing institutional barriers to foreign investment to see if they are sufficiently large to explain the bias observed in investors' portfolios. Halliday (1989) reports that there are few constraints on investing in foreign stock markets. This is especially true when investing in the markets of developed countries. Even when restrictions exist, they are usually not binding. Third, we consider the models of Black (1974) and Stulz (1981b) to see if transactions costs for investing abroad and taxes on income from foreign assets can explain the home equity bias. Cooper and Kaplanis (1986, 1991) and French and Porterba (1991) estimate that the taxes required to explain the observed bias are much larger than those investors actually face. We conclude that it is unlikely that these three factors are significant enough to explain the degree of the bias in portfolios that is observed empirically.     

Adopting bioenergy crops: Does farmers’ attitude toward loss matter?

We apply prospect theory to examining farmers’ economic incentives to divert a share of their land to bioenergy crops (miscanthus and switchgrass in this study). Numerical simulation is conducted for 1,919 rain‐fed U.S. counties to identify the impact of loss aversion on bioenergy crop adoption, and how this impact is influenced by biomass price, discount rate, credit constraint status, and policy instruments. Results show that ignoring farmer's loss aversion causes overestimation of miscanthus production but underestimation of switchgrass production, particularly when farmers are credit constrained and have a high discount rate. We find that establishment cost subsidy induces more miscanthus production whereas subsidized energy crop insurance induces more switchgrass production. The efficacy of these two policy instruments, measured by biomass production increased by per dollar of government outlay, depends on the magnitude of farmers’ loss aversion and discount rate.     

Model Misspecification and Underdiversification

In this paper, we study intertemporal portfolio choice when an investor accounts explicitly for model misspecification. We develop a framework that allows for ambiguity about not just the joint distribution of returns for all stocks in the portfolio, but also for different levels of ambiguity for the marginal distribution of returns for any subset of these stocks. We find that when the overall ambiguity about the joint distribution of returns is high, then small differences in ambiguity for the marginal return distribution will result in a portfolio that is significantly underdiversified relative to the standard mean‐variance portfolio.     

Designing supply chains: Towards theory development

This paper describes a typology for designing supply chains that work in harmony to design, produce, and deliver products with different characteristics and customer expectations. This research discusses supply chain types that are necessary for success across three types of products: standard, innovative, and hybrid. It develops a framework for categorizing the supply chain types according to product characteristics and stage of the product life cycle. The key success factor for a product change as the product moves through its life cycle, and this may require different supply chain characteristics and capabilities. The paper blends literature and theory development with cases study research to create the typology and develop a set of research questions for further investigation.     

Downside Risk and Investment Choice

This paper develops an optimal investment strategy for individuals concerned with avoiding the possibility of realizing returns below a predetermined target level within a prescribed period of time. Assuming a Brownian motion process, a model is developed which allows computation of the exact probability of failure. The algorithm and associated comparative statics with respect to the mean and standard deviation of returns, target return, time horizon, and risk-free rate of return are likely to have many useful practical applications.     

Assessment of CSR based supply chain performance system using an integrated fuzzy AHP-TOPSIS approach

The objective of this research was to identify Corporate Social Responsibility (CSR) criteria as well as propose and prioritise the alternatives to improve the supply chain performance system of an organisation. To meet the objective, firstly, CSR-based criteria, sub-criteria and alternatives were identified based on the literature review and discussion with the field experts, taken from automobile industries located at the Delhi region of India. Then, kappa statistics has been applied to check the internal consistency between identified criteria and sub-criteria. After finding the evidence of internal consistency, a hierarchical-type model has been developed and analysed using a multi-criteria decision-making as an integrated fuzzy analytical hierarchy process (AHP) and a fuzzy technique for order performance by similarity to the ideal solution (TOPSIS) approach. To make the results more robust and feasible, a sensitivity analysis has also been performed.     

A comprehensive study of worldwide selfie-related accidental mortality: a growing problem of the modern society

Since Oxford dictionary has described ‘Selfie’, selfie deaths have received a fair amount of coverage but the extent of the problem and the data behind it have not been appropriately explored. The aim of our study is to obtain epidemiological characteristics of selfie-related mortality worldwide with the objective of providing an insight to ‘Why selfie’, ‘Why risky’, ‘Psychological basis’ and ‘measures of control.’ Despite thousands of web pages, very few scientific articles are available in medical journals. So, we went online via Google search engine compiling every reported instance after confirming it and verifying the information in Wikipedia. Non-fatal injuries and non-selfie type of photography-related deaths were excluded from the study. From 2014 to mid-2016, 75 people have died while attempting selfie in 52 incidents worldwide. Mean age of the victims was 23.3 and 82% were male. India is the most affected country and Russia and US being second. Fall from height, drowning and rail accidents are the top three modes of death. Large-scale use of cell phone worldwide and underlying risk in selfie behaviour seems the culprit. Inability to compare selfie with non-selfie photography due to lack of data is definitely a limitation. Worldwide initiatives are being taken like ‘NO SELFIE ZONES’ but still a multifactorial approach is required before it gets too late.     

Are environmental social governance equity indices a better choice for investors? An Asian perspective

This article examines the risk and return profiles of stock indices composed of companies meeting environmental, social and governance (ESG) screening criteria [such as the Dow Jones Sustainability Indices (DJSI)] and conventional composite indices of eight Asian countries from 2002 to 2014. The results indicate that there are no significant differences in the returns or risk‐adjusted returns between the ESG indices and the composite indices within countries. The results do reveal that the market volatility of the ESG indices is higher than the market volatility of the conventional indices. Market betas of DJSI and ESG equity indices are significantly lower than betas of the composite equity indices. The overall results indicate that the performance of ESG equity indices of many Asian countries is similar to the performance of conventional indices, suggesting that investors can pursue socially responsible investing objectives without a material difference in portfolio performance from conventional investing.