Validity of discrete-time stochastic volatility models in non-synchronous equity markets

The paper investigates the validity of versions of discrete-time stochastic volatility models for index series known to contain component stocks exhibiting non-synchronous trading. The efficient method of moments (EMM) is used to fit versions of the discrete-time stochastic volatility (SV) model. The EMM methodology confronts moment conditions generated by a score generator (SNP) that are valid by construction. The moment generator suggests non-linearity in the index series. The EMM construction shows that a classical discrete time stochastic volatility model is rejected. An extended model incorporating an asymmetric volatility specification validates all the moment scores. Option values from Black and Scholes (BS) and Monte Carlo simulations (MC) seem significantly different. The results suggest that BS does not price asymmetry adequately. Asymmetry suggests increased market risk inducing higher BS call prices and lower (higher) BS put pricing for ATM and OTM options (ITM) relative to MC.     

Organizational tenure and mastery-avoidance goals: the moderating role of psychological empowerment

Mastery-avoidance (MAv) goals are recognized to be detrimental as they arouse counterproductive work-related behaviors. In the current literature, MAv goals are assumed to be more predominant among newcomers and longer-tenured employees. The alleged relationship provides important implications but yet has received scant empirical attention. In response, this study examines the proposed U-shaped curvilinear relationship between organizational tenure and MAv goal orientation. In addition, the potential moderating role of psychological empowerment on this curvilinear relationship is investigated. Based on data from 655 certified accountants, the results support the existence of the hypothesized curvilinear relationship. Also, it revealed that for employees who experience higher levels of psychological empowerment, the U-shaped relationship between organizational tenure and MAv goal orientation becomes flattened. Implications and future research are discussed.     

Institutional effects of empowerment: a comparison between the Anglo-Saxon and Scandinavian contexts

Many empowerment studies focus on issues at organisational and individual levels. However, few empirical investigations have been placed at a more macro level looking at the social environmental forces of empowerment. To contribute to this gap, this study investigates the existence of institutional effects on empowerment practices. The study is based on a secondary analysis of data from the 2005 European Working Conditions Survey. It compares an Anglo-Saxon and a Scandinavian context due to their distinct historical empowerment movements. The findings indicate that Scandinavian countries possess a higher institutional context for empowerment practices. Theoretical and practical implications are also discussed in the present study.     

Implementation of empowerment in Chinese high power-distance organizations

The importance of empowerment in service industries is recognized by practitioners and scholars in the West but there has been limited investigation of its impact on the willingness of service personnel in a high power-distance culture. This study examines how empowerment can be facilitated in the high power-distance context of China. Regression and path model analysis using a sample of 290 service employees from six 4-star to 5-star hotels in the Macau SAR China indicate that empowerment positively leads to higher service willingness and this relationship is mediated by performance-based rewards, and organizational and supervisor support. These findings have implications for HR managers considering or using empowerment.