M&As in the airline industry: motives and systematic risk

2012 ◽  
Vol 20 (4) ◽  
pp. 435-446 ◽  
Author(s):  
Loukia Evripidou
Keyword(s):  
Airline Industry ◽  
Economies Of Scale ◽  
Relevant Literature ◽  
Systematic Risk ◽  
Market Model ◽  
Data Sets ◽  
Content Type ◽  
Wealth Maximization ◽  
Management Objectives ◽  
The Individual

PurposeThe purpose of the current study was first to identify the motives for mergers, and second to examine the effect of mergers on the systematic risk of bidder firms in the airline industry.Design/methodology/approachTo evaluate the effect of mergers in the systematic risk, two different market models are estimated for each company in the sample, one with pre‐merger data and one with post‐merger data. Then the results obtained from the two data sets are compared so as to identify possible differences.FindingsThe study has identified three diving motives behind the merges, namely cost efficiency, economies of scale, and market power. All of these motives are expected to affect the new firm's earnings stream and in turn affect its systematic risk. With the use of the market model the individual merger results are mixed and in line with the relevant literature. Nonetheless, the average results showed a decrease in the post‐merger systematic risk.Research limitations/implicationsA reduced post‐merger systematic risk indicates a success in achieving management objectives. Mergers can generate synergetic gains from increasing cost efficiencies and/or scale economies and can also increase shareholders value through the reduction in the new firm's cost of capital. However, to have a more valid perspective a larger number of mergers should be included in the sample together with alternative calculation of systematic risk to test the robustness of the results.Originality/valueTaking into account the current economic hardship this paper addresses the issue of shareholders wealth maximization through mergers.

Tracking the Covid zones through geo-fencing technique

2020 ◽  
Vol 16 (5) ◽  
pp. 409-417
Author(s):  
Anto Arockia Rosaline R. ◽  
Lalitha R. ◽  
Hariharan G. ◽  
Lokesh N.
Keyword(s):  
Human Life ◽  
Modern Technology ◽  
Automated System ◽  
Data Sets ◽  
Privacy Concern ◽  
Security Measures ◽  
Content Type ◽  
Alert Message ◽  
The Government ◽  
The Individual

Purpose Because of the outbreak of Covid 19, the entire world is thinking of new strategies, preventive measures to safeguard the human life from the widespread of the pandemic. The areas where people are affected are marked as containment zones and people are not allowed to exit out of those areas. Similarly, new people are not allowed to enter inside those areas. Hence, the purpose of this paper is to propose a methodology to track the Covid zones, to enhance and tighten the security measures. A geo-fence is created for the containment zone. The person who enters or exits out of that particular zone will be monitored and alert message will be sent to that person’s mobile. Design/methodology/approach After tracking the location of a suspicious individual, the geo-fenced layer is mapped in the area and then the virtual perimeter is used for further trapping process. This geo-fenced layer can be viewed by the citizens as soon as it is updated by the Covid monitoring team. The geo-fencing is a concept of building a virtual perimeter area. This virtual perimeter monitoring system helps in monitoring the containment zones effectively. It reduces operational costs by using an automated system based on wireless infrastructure. It also alerts the authorities immediately to catch the violators. Thus, it helps to speed up the process of inspecting the containment zones and monitoring the individuals who violate the rules given by government. Findings The proposed methodologies will be an effective way to track the Covid’s communal spread. But the workflow of the system demands the required data sets and permission in legal manner to set up the environment that maintains the constitutional law and order in practice. The application developed was a prototype to display how it works if the required data sets are provided by the government. There are several tracking models that are released across the world such as Aarogya setu (India), Trace together (Singapore) and Hagmen (Israel). All these models are based on Bluetooth proximity identification; though Bluetooth proximity identification is helpful for high range in a short distance, the privacy concern is debatable one. Using modern technology, it is so easy to crack the individual gadgets and with Bluetooth enabling it makes things even worse. Thus, it is important to maintain the tracking a safer and secure one, and another issue with those Bluetooth-based applications is that tracking can be done only if the user enabled the Bluetooth option, if not the entire functioning would become a mess. The proposed methodology of tracking without Bluetooth will ensure data security also. Originality/value This was developed as a project by our third-year students of the Department of Information Technology of our college.

scholarly journals Works councils and performance appraisals

2020 ◽  
Vol 3 (1) ◽  
pp. 29-50
Author(s):  
Christian Grund ◽  
Dirk Sliwka ◽  
Krystina Titz
Keyword(s):  
Industrial Relations ◽  
Performance Appraisals ◽  
Data Sets ◽  
Content Type ◽  
Works Councils ◽  
Bonus Payments ◽  
Actual Use ◽  
And Performance ◽  
Works Council ◽  
The Individual

PurposeWe analyze the role of works councils for the use of performance appraisals (PA). We distinguish between the incidence of PA systems as intended by the firm and their actual implementation on the level of the individual employee.Design/methodology/approachWe draw on two complementary data sets. These are the German Linked Personnel Panel (LPP), which combines firm-based information with information provided by several of those employees, and the German Socio-Economic Panel (SOEP), which is a representative longitudinal study of persons living in Germany.FindingsWe find that works councils tend to promote rather than restrict PA. Employees working in establishments with a works council are more likely to face a formal PA procedure. Works councils also act as a transmission institution for the actual use of an existing PA system – i.e. among the firms that claim to implement PA for all their employees, the likelihood of their employees actually having regular appraisals is substantially larger when works councils are in place. Moreover, the existence of works councils is positively related particularly to PA systems, which affects bonus payments.Research limitations/implicationsWe contribute to the understanding of the work of works councils in firms. In more general, we shed light to the relation of industrial relations and human resource management in firms.Practical implicationsThis result hints at a higher acceptance of PA systems in firms with works councils. It seems likely that the stronger formalization of such systems necessitated by codetermination laws increases the likelihood of supervisors consistently carrying out such appraisals.Originality/valueWe are the first who complement the analysis of the existence of HR practices (PA system) with its actual use for employees.

A classification approach based on variable precision rough sets and cluster validity index function

2014 ◽  
Vol 31 (8) ◽  
pp. 1778-1789
Author(s):  
Hongkang Lin
Keyword(s):  
Optimal Number ◽  
Data Sets ◽  
Cluster Validity ◽  
Cluster Validity Index ◽  
Index Method ◽  
Data Set ◽  
Content Type ◽  
The Individual ◽  
Variable Precision Rough Sets ◽  
Optimal Number Of Clusters

Purpose – The clustering/classification method proposed in this study, designated as the PFV-index method, provides the means to solve the following problems for a data set characterized by imprecision and uncertainty: first, discretizing the continuous values of all the individual attributes within a data set; second, evaluating the optimality of the discretization results; third, determining the optimal number of clusters per attribute; and fourth, improving the classification accuracy (CA) of data sets characterized by uncertainty. The paper aims to discuss these issues. Design/methodology/approach – The proposed method for the solution of the clustering/classifying problem, designated as PFV-index method, combines a particle swarm optimization algorithm, fuzzy C-means method, variable precision rough sets theory, and a new cluster validity index function. Findings – This method could cluster the values of the individual attributes within the data set and achieves both the optimal number of clusters and the optimal CA. Originality/value – The validity of the proposed approach is investigated by comparing the classification results obtained for UCI data sets with those obtained by supervised classification BPNN, decision-tree methods.

scholarly journals Insights on the glass ceiling for immigrant women entrepreneurs in the technology sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sancheeta Pugalia ◽  
Dilek Cetindamar
Keyword(s):  
Women Entrepreneurs ◽  
Immigrant Women ◽  
Relevant Literature ◽  
Immigrant Woman ◽  
Future Research ◽  
Content Type ◽  
Technology Sector ◽  
Comprehensive Picture ◽  
Level Versus ◽  
The Individual

PurposeTechnology sector is the pivotal element for innovation and economic development of any country. Hence, the present article explores past researches looking into challenges faced by immigrant women entrepreneurs in technology sector and their corresponding response strategies.Design/methodology/approachThis study employs a systematic literature review (SLR) technique to collate all the relevant literature looking into the challenges and strategies from immigrant women entrepreneur's perspective and provide a comprehensive picture. Overall, 49 research articles are included in this SLR.FindingsFindings indicate that immigrant status further escalates the human, financial and network disadvantages faced by women who want to start a technology-based venture.Originality/valueThis paper contributes to the literature by categorizing the barriers and strategies on a 3 × 2 matrix reflecting the origins of the barrier or strategy (taking place at the individual, firm or institutional level) versus the type of the barrier or strategy (arising from being an immigrant woman and being a woman in the technology sector). After underlining the dearth of studies in the literature about the complex phenomenon of immigrant WEs in the technology sector, the paper points out several neglected themes for future research.

Exploring adaptability in organizations

2016 ◽  
Vol 29 (6) ◽  
pp. 837-854 ◽  
Author(s):  
Manuel Ramón Tejeiro Koller
Keyword(s):  
Decision Making ◽  
Relevant Literature ◽  
Adaptive Strategy ◽  
Content Type ◽  
Complex Concept ◽  
Innovative Firms ◽  
Organization Ecology ◽  
New Perspective ◽  
Definition Of ◽  
The Individual

Purpose The purpose of this paper is to contribute to the development of a new perspective on adaptive strategy design. It examines the concept of adaptive advantage, as such a new perspective, and seeks to improve its understanding and application. The study of its origins leads to a solid comprehension of the concept and the proposal of a certain company profile. This could serve as a foundation for further research and as benchmark for companies trying to be more responsive to change and ultimately more resilient. Design/methodology/approach Three theories of the area of adaptability, namely, organization ecology, corporate demography and complexity-based thinking, have been studied conducting a review of the relevant literature of each one. After drawing out the individual contributions, a definition of adaptive advantage is offered and the question about its implementation in an organization is posed. Consequently, indicators of the three elements impacting adaptability, innovation culture, decision-making style and accumulated experience are measured in a sample of “old” and innovative firms. In order to do so, three questionnaires have been used, resulting in a case description of an archetype of adaptive companies. Findings It is shown that the expected elements are present, but in a lesser degree than expected. In conclusion, the trial study shows a pattern of “old,” innovative firms, whose cultures promote innovation, are analytic and adaptive in their decision making and have relatively high levels of accumulated experience. Originality/value This general review improves the comprehension of a complex concept currently under debate in the field of strategic planning. It explains the areas of the firm implicated in the achievement of adaptive advantage and tries to clarify a practical application of the concept.

Equity market reaction to regulatory reforms: a case study of Indian banks

2020 ◽  
Vol 28 (3) ◽  
pp. 431-464
Author(s):  
Madhvi Sethi ◽  
Dipali Krishnakumar
Keyword(s):  
Abnormal Returns ◽  
Systematic Risk ◽  
Equity Market ◽  
Emerging Economy ◽  
Market Model ◽  
Content Type ◽  
Regulatory Measures ◽  
The Government ◽  
The Impact ◽  
Regulatory Reforms

Purpose Non-performing assets (NPAs) have been a cause of concern for the banking sector across the world and have invited a lot research interest, especially for emerging economies. In India, the NPAs grew many folds and reached alarming levels in 2013. The available mechanisms, such as Corporate Debt Restructuring Scheme, were not adequate to address this issue. The Central Reserve Bank of India with the Government of India introduced various guidelines, schemes and regulations like framework for revitalizing distressed assets to tackle NPAs during the period 2013-2017. Taking the case of India, the purpose of this paper is to examine policy initiatives and analyse the impact of regulatory shocks on the equity market returns and the systematic risk of individual banking stocks using an extended version of the market model. Design/methodology/approach In this study, the authors design the experiment to explore the reaction of banking stocks to the various regulatory measures and also measure the change in systematic risk for these stocks as a result of the regulatory changes. Following the approach suggested by Soraokina and Thornton (2015), the authors use the extended market model to test the reaction of banking company stocks to the regulatory measures. Findings The study finds that banking stocks did not earn significant abnormal returns on the announcement of these measures. However, the systematic risk of the banking index reduced significantly on the introduction of regulatory measures, and this risk reduction has been primarily in the stocks of private sector banks. Research limitations/implications This paper provides insights on the equity market's short-term reaction to the reform initiatives introduced by the government. The scope of the paper is with respect to one emerging economy, India, which underwent a series of regulatory reforms to tackle the banking NPA problem. Originality/value The paper fills an important research gap where the impact of schemes and regulations is captured for an emerging economy like India. It tries to bring forth the importance of these reforms and how an investor perceives the same. This paper tests for changes in systematic risk as measured by market beta as well as measures cumulative abnormal returns associated with important events in the process of regulatory reforms happening in India from 2013 to 2017.

A microsimulation approach to corporate disclosure policies

2014 ◽  
Vol 38 (7) ◽  
pp. 861-880 ◽  
Author(s):  
Enrique Bonsón ◽  
Francisco Flores-Muñoz
Keyword(s):  
Relevant Literature ◽  
Substantial Effect ◽  
Data Sets ◽  
Corporate Disclosure ◽  
Public Agencies ◽  
Author Study ◽  
Content Type ◽  
Explanatory Factors ◽  
Micro Simulation ◽  
Minimum Requirements

Purpose – The purpose of this paper is to present a formalisation of the “online transparency” concept in particular firms’ disclosures, employing basic microeconomics. Relevant literature from the accounting, economics and finance fields, along with specific documents regarding micro-simulation as a technique to capture diversity in data sets, is surveyed. Design/methodology/approach – A class of Stone-Geary utility functions is proposed as an analytical tool. A first simulation of public policies is introduced, exploring its impact on corporate firms and their preferences for online disclosure, specifically in Europe. Moreover, the author study corporate firm digital disclosure and compulsory disclosure policy specifically in Europe, exploring whether the size of the firm, country and sector of operation are relevant to explaining the differences in firms’ behaviour and whether these explanatory factors remain after the application of several types of policies. Findings – Quantitative policies, using this denomination to refer to those that directly affect the amounts of money dedicated to online disclosure, or its unitary costs, seem to have a less substantial effect than those that the author could call qualitative policies (stating minimum requirements for all companies or promoting broader scrutiny by means of internationalisation). Research limitations/implications – These last policies could also be less expensive for public agencies, as the quantitative ones should be supported by some kind of subsidy or tax benefit system. The paper contains certain mathematical assumptions that will need to be relaxed in further works. Originality/value – Finally, a full research agenda arises from this first attempt, from which both conceptual and methodological lessons can be learned.

A review of “Devenir Soi” by Jacques Attali: through the lenses of liberalism and Buddhism

2015 ◽  
Vol 23 (3) ◽  
pp. 158-168
Author(s):  
Marc Pilkington
Keyword(s):  
Methodological Approach ◽  
Relevant Literature ◽  
Critical Discussion ◽  
Content Type ◽  
Self Development ◽  
English Speaking ◽  
New Vision ◽  
Jacques Attali ◽  
English Speaking World ◽  
The Individual

Purpose – The purpose of this paper is to reinterpret Attali’s worldview through the lenses of liberalism and Buddhism by mobilizing the relevant literature, beyond the mere book review. This paper is an essay based on the book “Devenir Soi” by Jacques Attali, published in France in 2014. These analytical grids were chosen, because freedom and self-realization are two themes that pervade the book. Design/methodology/approach – After presenting the book structure, the objective and the methodological approach, we uncover Attali’s interrogation, namely how to free oneself from the omnipresence of evil, the withering away of the State and growing xenophobic populist self-entitlement. We make explicit Attali’s liberalism and plea for freedom, and we present a critical discussion of his method, based on the idea of selfness essentialism and a novel comparison with Buddhism. Finally, we assess the overall success of Attali’s intellectual endeavor. Findings – Attali’s thesis is generally consistent and solid. Nevertheless, a few weaknesses are identified. Practical implications – Anybody willing to read Attali’s book as a self-development book will gain some valid insights with this paper. Social implications – Attali’s book is largely centered on the individual. Yet, through the lenses of liberalism and Buddhism, a new vision of society is put forward. Originality/value – Attali enjoys an international reputation as an intellectual, economist and essayist. Devenir Soi has not yet been translated in English. More than a mere translation, the present paper will bring his ideas to the fore in the English-speaking world.

Systematic risk and deposit insurance pricing

2017 ◽  
Vol 7 (4) ◽  
pp. 390-406 ◽  
Author(s):  
Yaojie Zhang ◽  
Benshan Shi
Keyword(s):  
Moral Hazard ◽  
Option Pricing ◽  
Deposit Insurance ◽  
Systematic Risk ◽  
Market Risk ◽  
Market Model ◽  
Pricing Model ◽  
Content Type ◽  
Insurance Premiums ◽  
Insurance Pricing

Purpose The purpose of this paper is to alleviate the moral hazard problem created by deposit insurance and therefore develop a deposit insurance pricing model explicitly considering systematic risk. Design/methodology/approach Using the market model, the authors introduce the systematic risk component consisting of market risk and beta risk. A closed-form solution for the authors’ pricing model is derived based on the option pricing framework. Findings Compared with the authors’, the pricing model that ignores systematic risk underestimates deposit insurance premium, and cannot cover the excessive loss created by systematic risk. To examine the effect of the systematic risk component on the deposit insurance premiums estimated by the authors’ model, this paper also provides empirical evidence from China by regression analysis. The results demonstrate that, in addition to the individual failure risk, the systematic risk component is properly priced and explicitly reflected in the authors’ model. Research limitations/implications More risk factors such as liquidity risk should be introduced in the pricing of deposit insurance. Practical implications Deposit insurance premiums estimated by the authors’ model can alleviate the moral hazard problem that banks have an incentive to take on excessive systematic risk, because substantial higher insurance premiums would be charged in doing so. Originality/value Applying the option pricing theory and market model, this paper develops a deposit insurance pricing model with explicit consideration of systematic risk. The systematic risk component contains not only the market volatility but also the sensitivity of market risk.

Government-led critical success factors in PPP infrastructure development

2015 ◽  
Vol 5 (1) ◽  
pp. 121-134 ◽  
Author(s):  
Andreas Wibowo ◽  
Hans Wilhelm Alfen
Keyword(s):  
Critical Success Factors ◽  
Success Factors ◽  
Gap Analysis ◽  
Data Sets ◽  
Infrastructure Development ◽  
Content Type ◽  
Critical Success ◽  
International Investors ◽  
The Government ◽  
The Individual

Purpose – The purpose of this paper is to identify 30 government-led critical success factors (CSFs) from both the meso and micro levels in public-private partnership (PPP) infrastructure development, measured the importance of these factors, and evaluated the government performance within the Indonesian context. Design/methodology/approach – The authors used weighted gap analysis, the Mann-Whitney test, and the Holland and Copenhaver procedure to support the analysis. Findings – The agreement-adjusted mean scores suggest that the identified CSFs are essential, but that these CSFs underperform in Indonesia. The tests indicated that the gap between performance and importance was significant on both the individual and aggregate level, and no respondent-background bias was observed in the data sets. Practical implications – This paper provides valuable information for prospective international investors who might be interested in alternative PPP investment opportunities in Indonesia. Originality/value – This paper enriches the existing body of knowledge on Indonesia’s PPP activities. This is important as, despite the fact that Indonesia offers one of the largest opportunities in Asia for investment in the national infrastructure sector, studies on Indonesia’s PPPs are rarely reported in the literature. This paper also offers a simple, practical, and replicable approach with a sound theoretical basis that can assist governments in identifying and evaluating PPP-specific determinant factors under their control, as well as in measuring their performance on these factors.

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