scholarly journals What transaction costs are acceptable in life insurance products from the policyholders’ viewpoint?

2016 ◽  
Vol 17 (3) ◽  
pp. 277-294 ◽  
Author(s):  
Hato Schmeiser ◽  
Joël Wagner
Keyword(s):  
Transaction Costs ◽  
Life Insurance ◽  
Mutual Fund ◽  
Research Question ◽  
Point Of View ◽  
Insurance Companies ◽  
Content Type ◽  
Investment Opportunities ◽  
And Performance ◽  
Point To Point

Purpose The purpose of this paper is to analyze what transaction costs are acceptable for customers in different investments. In this study, two life insurance contracts, a mutual fund and a risk-free investment, as alternative investment forms are considered. The first two products under scrutiny are a life insurance investment with a point-to-point capital guarantee and a participating contract with an annual interest rate guarantee and participation in the insurer’s surplus. The policyholder assesses the various investment opportunities using different utility measures. For selected types of risk profiles, the utility position and the investor’s preference for the various investments are assessed. Based on this analysis, the authors study which cost levels can make all of the products equally rewarding for the investor. Design/methodology/approach The paper notes the risk-neutral valuation calibration using empirical data utility and performance measurement dynamics underlying: geometric Brownian motion numerical examples via Monte Carlo simulation. Findings In the first step, the financial performance of the various saving opportunities under different assumptions of the investor’s utility measurement is studied. In the second step, the authors calculate the level of transaction costs that are allowed in the various products to make all of the investment opportunities equally rewarding from the investor’s point of view. A comparison of these results with transaction costs that are common in the market shows that insurance companies must be careful with respect to the level of transaction costs that they pass on to their customers to provide attractive payoff distributions. Originality/value To the best of the authors’ knowledge, their research question – i.e. which transaction costs for life insurance products would be acceptable from the customer’s point of view – has not been studied in the above described context so far.

Saving green while going green

2019 ◽  
Vol 45 (1) ◽  
pp. 21-35
Author(s):  
C. Edward Chang ◽  
Thomas M. Krueger ◽  
H. Doug Witte
Keyword(s):  
Mutual Funds ◽  
Performance Measures ◽  
Mutual Fund ◽  
Research Question ◽  
Turnover Rates ◽  
Operating Characteristics ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investing ◽  
And Performance

Purpose The purpose of this paper is to examine the operating characteristics as well as risk and performance measures of all available self-proclaimed socially responsible funds (hereafter SRFs) in the USA over the ten-year (2007–2016) period. The first research question addressed is: Do SRFs perform as well as the average of all mutual funds in their respective categories? The second research question addressed is: Are SRF expense ratios correlated with fund performance? Design/methodology/approach This study analyzes all socially responsible equity mutual funds, as self-reported to Morningstar. This paper empirically compares operating characteristics and performance measures of SRFs relative to category averages in the US mutual fund industry. Operating characteristics include expense ratios and annual turnover rates. Performance measures include conventional return, risk and risk-adjusted return measures. Findings Although prior research suggests that socially responsible investing (SRI) indexes and SRI-friendly stocks have favorable returns, this study finds that these self-proclaimed SRFs underperform the average of all mutual funds in matched equity categories. However, this study demonstrates that a simple filter based on expense ratios can identify those SRFs that will enable investors to do quite well while doing good. Originality/value The contribution of this paper is twofold. First, the authors report that self-proclaimed SRFs, as a whole, have not generated competitive returns relative to other mutual funds in the same categories over the past ten years. This result contradicts the notion that socially responsible investors do not give up return performance when investing with their conscience. Second, the authors find that those SRFs with expense ratios in the lowest quartile of their respective category have significantly higher risk-adjusted returns and significantly lower turnover than category averages. Thus, by focusing on SRFs with low-expense ratios, socially responsible investors can do quite well while doing good.

Organisational form and performance in fashion retailing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pericles Ramón Mejía-Vásquez ◽  
Roberto Sánchez-Gómez ◽  
Sheila Serafim da Silva ◽  
Luis Vázquez-Suárez
Keyword(s):  
Service Quality ◽  
Vertical Integration ◽  
Research Question ◽  
Content Type ◽  
Aggregated Data ◽  
Organisational Form ◽  
Level Data ◽  
And Performance ◽  
Key Indicators ◽  
Level Performance

PurposeThis research seeks to discover how the organisational form (franchising vs vertical integration) of 384 fashion stores belonging to a Spanish franchise chain influences unit-level performance measured through three key indicators commonly used in the retail literature: sales per square metre, sales per employee and service quality scores.Design/methodology/approachThe authors have analysed this research question using bivariate and multivariate analyses, with a panel dataset that includes quarterly establishment-level data covering the period from January 2018 to December 2019.FindingsThe aggregated data initially reveal weaker outcomes among franchised establishments. However, after controlling for other variables related to the fashion stores and their local markets, the authors have found that franchised establishments record higher sales both per square metre and per employee than vertically integrated stores. The findings also reveal that franchised establishments record lower service quality scores than their company-owned counterparts.Originality/valueNothing has been published on the differences between franchising and company ownership in terms of establishment-level performance in fashion retailing.

Intellectual capital and performance

2018 ◽  
Vol 19 (2) ◽  
pp. 407-452 ◽  
Author(s):  
Eugénia Pedro ◽  
João Leitão ◽  
Helena Alves
Keyword(s):  
Intellectual Capital ◽  
Research Question ◽  
Empirical Studies ◽  
Content Type ◽  
Wide Range ◽  
Depth Study ◽  
Global Vision ◽  
Customer Capital ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this paper is to determine the predominant classification of intellectual capital (IC), in terms of components, using the literature of reference on the relationship between IC and performance and considering multi-dimensional analysis axes (MAAs): organisational, regional and national. Design/methodology/approach A systematic literature review (SLR) is presented focussing on empirical studies on IC published in the period 1960-2016. A protocol for action is defined and a research question is raised, gathering data from the databases of: Web of Science, Scopus and Google Scholar. A social network analysis is also provided to determine the type of networks embracing groups, IC individual components and performance type. Findings Of the 777 papers included in the SLR, 189 deal with the relationship between IC and performance. The paper highlights the greater development of empirical studies starting from 2004; the organisational MAA is the most studied. The most frequently used groups of components in studies dealing with IC’s influence on performance corresponds to a triad of human capital; structural (organisational or process) capital; and relational (social or customer) capital, which determine positively the performance of organisations/regions/countries, but their influence is not linear and depends on various factors associated with the context and surrounding environment. Practical implications This study has wide-ranging implications for politicians/governments, managers and academics, providing empirical evidence about the relationships between the components of IC and performance, by MAAs, and a global vision and better understanding of how those IC components have developed and how they are related to performance. Originality/value Due to the high number of references covering a wide range of disciplines and the various dimensions (e.g. organisational, regional and national) that form IC, it becomes fundamental to carry out an SRL and systematise its MAAs to deepen knowledge about what has been discovered/developed in this domain, in terms of empirical studies, in order to situate the topic in a wider theoretical-practical context. The paper is exceptionally wide-ranging, covering the period 1960-2016. It is one of the first clarifying studies on systemisation of the literature on IC, by MAA, and an in-depth study of IC’s impact on the performance of organisations/regions and countries which may serve as a guideline for future studies using the taxonomy proposed.

scholarly journals Post content and its effect on consumer engagement rate in Indian life insurance Facebook brand pages

2018 ◽  
Vol 7 (2) ◽  
pp. 795 ◽  
Author(s):  
Sudarsan Jayasingh ◽  
T. Thiruvenkadam ◽  
S. Arunkumar
Keyword(s):  
Life Insurance ◽  
Negative Binomial ◽  
Negative Binomial Regression ◽  
Statistical Technique ◽  
Insurance Companies ◽  
Consumer Engagement ◽  
Content Type ◽  
Related Information ◽  
Binomial Regression ◽  
Research Findings

Indian insurance companies are new in adopting social media marketing and this research paper try to identify the post characteristics that drive consumer engagement in Facebook brand pages. The data used for this study was obtained from the post of five brands of Indian life insurance companies’ official Facebook brand pages. The data collection was gathered using Fanpage Karma over a period of three months, from the 1st of Jan to the 31st of March 2017. The posts collected during the period were 448 brand-initiated posts in total. This study calculated consumer engagement rate as total number of likes, comments and shares by total number of fans. The analysis is done using negative binomial regression statistical technique. The results show that media format and content type significantly affects the consumer engagement in Facebook brand pages. Content that provides brand related information was found to be one of important factor to increase the consumer engagement rate. The consumer engagement is found to be high for images of low vividness. The recommendations provided to marketers based on the research findings in this study.

scholarly journals Cash management and performance of index mutual funds

2020 ◽  
Vol 33 (3/4) ◽  
pp. 549-565
Author(s):  
Diego Víctor de Mingo-López ◽  
Juan Carlos Matallín-Sáez ◽  
Amparo Soler-Domínguez
Keyword(s):  
Stock Market ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Fund Performance ◽  
Cash Management ◽  
Stock Market Index ◽  
Index Funds ◽  
Content Type ◽  
Market Index ◽  
And Performance

PurposeThis study aims to assess the relationship between cash management and fund performance in index fund portfolios.Design/methodology/approachUsing a sample of 104 index mutual funds that track the Standard and Poor 500 stock market index from January 1999 to December 2016, the authors employ quintile portfolios and different regression models to assess the differences in risk-adjusted monthly returns experienced by index funds managing different cash levels in their portfolios. To ensure the robustness of the results, different sub-periods and market states are considered in the analyses as well as other exogenous factors and fund characteristics affecting the level of portfolio cash holdings and index fund performance.FindingsResults show that index funds holding higher levels of cash and cash equivalents performed significantly worse than their low-cash counterparts. This evidence remains even after considering different sub-periods and bullish and bearish market conditions and controlling for fund expenses and other variables that could drive this cash-performance relationship.Originality/valueThis study expands the extant literature analyzing cash management in the mutual fund industry. More specifically, the analyses focus on index fund portfolios that replicate a specific benchmark, given that their performance differences should not be related to the market evolution but to the factors derived from the fund management and other exogenous issues. These findings are of interest to managers and investors willing to improve their risk-adjusted returns while investing as diversified as a stock market index.

Competitive productivity in South African public–private partnerships

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniella Fjellstrom ◽  
Paul Frick
Keyword(s):  
South African ◽  
Government Policy ◽  
Research Question ◽  
Qualitative Interviews ◽  
National Level ◽  
Secondary Data ◽  
Content Type ◽  
Moderating Factors ◽  
And Performance

PurposeThis study aims to develop the concept of competitive productivity focussing on the interplay between national competitive productivity (NCP) and firm competitive productivity (FCP) based on the following research question: how does the competitive productivity framework explain the influence that government has on public–private procurement programmes?Design/methodology/approachA case study is conducted on the South African Renewable Energy Independent Power Producer Procurement Programme. Data were collected using an exploratory, mixed methods design, starting with national level secondary data on five bid windows between 2011 and 2014, followed by eight in-depth qualitative interviews with industry experts.FindingsThe findings indicate that non-financial factors, such as trust (through consistent and transparent government policy) as well as a pragmatic attitude on the part of government, increased competition and ultimately resulted in a productive procurement process.Social implicationsBy understanding what moderating factors influence competitiveness in African procurement programmes, using competitive productivity (CP) as a framework, the research contributes to development of government policy and procurement programmes. Incidentally, there is little doubt that improving infrastructure and in turn a greater percentage of access to electricity leads to increased competitiveness of the nation, firms and individuals, thus enabling companies to grow and operate with more stability.Originality/valueOriginality is demonstrated through the interplay of NCP and FCP, where the constructs of culture, benchmarking and performance were found to have the strongest influence of the six constructs of the CP model.

Manipulation and performance persistence: an examination of Iranian equity mutual fund performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahsa Hosseini ◽  
Mohammad Khodaei Valahzaghard ◽  
Ali Saeedi
Keyword(s):  
Mutual Funds ◽  
Performance Measures ◽  
Mutual Fund ◽  
Performance Measure ◽  
Performance Persistence ◽  
Content Type ◽  
Lower Tertile ◽  
Time Horizons ◽  
Equity Mutual Funds ◽  
And Performance

Purpose This paper aims to study manipulation and performance persistence in equity mutual funds. To this end, Manipulation-Proof Performance Measure (MPPM) and Doubt Ratio, along with a number of current performance measures are used to evaluate the performance of equity mutual funds in Iran. Design/methodology/approach The authors investigate performance manipulation by 1) comparing the results of the MPPM with the current performance measures, 2) checking the Doubt Ratio to detect suspicious funds. Additionally, the authors investigate performance persistence by forming and evaluating portfolios of the equity mutual funds at several time horizons. Findings The authors conclude that there is no evidence of performance manipulation in the equity mutual funds. Additionally, when comparing the performance of the upper (top) tertile portfolios and the lower tertile portfolios, in all of the studied 1, 3, 6 and 12-month horizons, the authors find performance persistence in the equity mutual funds. Originality/value To the best of the authors’ knowledge, this research is the first study to investigate the performance manipulation in the Iranian equity mutual funds, and also is the first study in Iran that uses the MPPM and the Doubt Ratio in addition to a number of current performance measures to investigate the performance persistence in the equity mutual funds at several time horizons.

Market structure, efficiency and profitability of insurance companies in Ghana

2015 ◽  
Vol 10 (4) ◽  
pp. 648-669 ◽  
Author(s):  
Abdul Latif Alhassan ◽  
George Kojo Addisson ◽  
Michael E. Asamoah
Keyword(s):  
Market Structure ◽  
Life Insurance ◽  
Insurance Industry ◽  
Consumer Welfare ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Ample Evidence ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of the regulatory-driven market structure on firm pricing behaviour by testing the structure-conduct-performance (S-C-P) hypothesis for both life and non-life insurance markets in Ghana. Design/methodology/approach – Using a panel data on 14 life and 22 non-life insurers from 2007 to 2011, the authors employed the Herfindahl Hirschman Index and concentration ratio as proxies for the S-C-P hypothesis while efficiency scores were estimated using the data envelopment analysis technique to proxy for the efficient structure (ES) hypothesis. The dependent variable, profitability was measured as return on assets while controlling for size, underwriting risk, leverage, GDP growth rate and inflation. The models were estimated using the panel corrected standard errors of Beck and Katz (1995) and random effects estimations. Findings – The results from the empirical estimation provide ample evidence in support for ES hypothesis for both life and non-life insurance markets. While conflicting results was found for SCP hypothesis in the non-life insurance market, it was rejected in the life insurance market. The findings also point to an increasing level of competition in both life and non-life insurance industry in Ghana though they still remain concentrated with the life insurance sector having high levels of efficiency compared to the non-life sector. Practical implications – The findings of the study will enhance the understanding of firm behaviour in the new markets created to shape regulatory and competition policies of the regulator to promote consumer welfare while ensuring a stable industry to enhance its role in economic development. Originality/value – This is the first study to test the market power and efficient hypotheses on the insurance industry in Ghana. To the best of the author’s knowledge, this study is the first to examine the determinants of profitability in the non-life insurance market.

Board independence, frequency of meetings and performance

2019 ◽  
Vol 10 (1) ◽  
pp. 290-303 ◽  
Author(s):  
Abdalmuttaleb Musleh Alsartawi
Keyword(s):  
Performance Indicator ◽  
Negative Relationship ◽  
Multiple Linear Regression Model ◽  
Point Of View ◽  
Board Structure ◽  
Islamic Banks ◽  
Return On Assets ◽  
Content Type ◽  
And Performance ◽  
The Cost

PurposeThis study aims to investigate the relationship between board structure and performance from an Islamic point of view.Design/methodology/approachConsequently, the researcher developed a multiple linear regression model to investigate the nature of this relationship, whereby return on assets (ROA) was used to measure the performance of listed Islamic Banks in Gulf Cooperation Council, covering the period between 2013 and 2016.FindingsThe results indicated a negative relationship between board structure and the performance of Islamic banks.Research limitations/implicationsBecause the current study only used accounting-based performance indicator (ROA), the researcher suggests expanding the framework of this study through the addition of market-based performance indicators such as Tobin’s Q.Practical implicationsTherefore, the researcher recommends that regulators of Islamic banks in the GCC need to develop a set of strict restrictions for the selection of independent members of the board and to minimize the meetings of the board to reduce the cost of preparing information and the information asymmetry, thus improving performance.Originality/valueThis study provides guidelines regarding the appropriate number of independent directors and board meetings that will result in reduced monitoring costs and improved profits.

Transaction costs and performance variation of agricultural operators

2015 ◽  
Vol 7 (3) ◽  
pp. 374-388 ◽  
Author(s):  
Kangkang Yu ◽  
Xinkai Zhu ◽  
Xuan Chen
Keyword(s):  
Transaction Costs ◽  
County Level ◽  
Market Information ◽  
Policy Makers ◽  
Change Rate ◽  
Content Type ◽  
Performance Variation ◽  
And Performance ◽  
Main Effects ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between transaction costs and the performance variance of peasant households and specialized cooperatives, as well as to explore whether or not this relationship varies across different regions in China. Design/methodology/approach – Based on the transaction cost theory (TCT) and the contingency theory (CT), a survey was undertaken at county level to support the main effects and moderating effects and the results were analyzed using a general linear model. A complementary case study was also used to further discuss the results. Findings – It was found that the change rate of peasant households’ scope of operation is sensitive to inadequate market information, purchase and sales expense and resolving disputes expense. In terms of specialized cooperatives, the change rate of their scale of operations is sensitive to inadequate market information, the chances of violating an agreement and incomplete norms. The moderating effect of regional classification is supported in terms of purchase and sales expenses on the performance variance of peasant households, and in terms of inadequate market information on the performance variance of specialized cooperatives. Research limitations/implications – First, the data were collected at the county level, which could only reflect the conditions of the macro-environment. Second, many variables were designed as dummies for the sake of brevity and efficiency, because the respondents were officers in local agricultural departments. Third, transaction costs may not have a direct effect on the variance of productivity but indirect through many potential mediators. Practical implications – The results not only provide useful information for agricultural operators to analyze the transaction costs related to their forms of organization, but also impartial advice for policy makers to consider the form of agricultural operators in different regions. Originality/value – This study focusses on the role of the external environment by integrating the TCT and CT theory. Furthermore, it seeks to explore whether the relationship between transaction costs and the performance variance of peasant households and specialized cooperatives varies across different regions of China.

Sign in / Sign up

Export Citation Format

Share Document