Risk-sharing finance governance: Islamic vs conventional indexes option pricing

2018 ◽  
Vol 44 (5) ◽  
pp. 540-550
Author(s):  
Haykel Hamdi ◽  
Jihed Majdoub
Keyword(s):  
Option Pricing ◽  
Risk Sharing ◽  
Research Question ◽  
Option Price ◽  
Empirical Literature ◽  
Risk Governance ◽  
Hedging Strategy ◽  
Content Type ◽  
Dynamic Case ◽  
Conventional Counterpart

Purpose Risk governance has an important influence on the hedging performances in option pricing and portfolio hedging in both discrete and dynamic case for both conventional and Islamic indexes. The paper aims to discuss these issues. Design/methodology/approach This paper explores option pricing and portfolio hedging in a discrete and dynamic case with transaction costs. Monte Carlo simulations are applied to both conventional and Islamic indexes in US and UK markets. Simulations show that conventional and Islamic assets do not exhibit the same price and portfolio hedging strategy governance. Findings The authors conclude that Islamic assets show different option price and hedging strategy compared to their conventional counterpart. Originality/value The research question of this paper aims at filling the gap in the empirical literature by exploring option price and hedging structure for both conventional and Islamic indexes in US and UK stock markets.

Option valuation and hedging in markets with a crunch

2017 ◽  
Vol 44 (5) ◽  
pp. 801-815 ◽  
Author(s):  
Youssef El-Khatib ◽  
Abdulnasser Hatemi-J
Keyword(s):  
Financial Crisis ◽  
Option Pricing ◽  
Financial Risk ◽  
Asset Price ◽  
Hedging Strategy ◽  
Numerical Application ◽  
Content Type ◽  
Hedging Strategies ◽  
Option Pricing Model ◽  
Better Than

Purpose Option pricing is an integral part of modern financial risk management. The well-known Black and Scholes (1973) formula is commonly used for this purpose. The purpose of this paper is to extend their work to a situation in which the unconditional volatility of the original asset is increasing during a certain period of time. Design/methodology/approach The authors consider a market suffering from a financial crisis. The authors provide the solution for the equation of the underlying asset price as well as finding the hedging strategy. In addition, a closed formula of the pricing problem is proved for a particular case. Furthermore, the underlying price sensitivities are derived. Findings The suggested formulas are expected to make the valuation of options and the underlying hedging strategies during a financial crisis more precise. A numerical application is provided for determining the premium for a call and a put European option along with the underlying price sensitivities for each option. Originality/value An alternative option pricing model is introduced that performs better than existing ones, especially during a financial crisis.

PPPs as strategic alliances: from technocratic to multidimensional risk governance

2014 ◽  
Vol 40 (11) ◽  
pp. 1095-1111 ◽  
Author(s):  
Laura d'Alessandro ◽  
Stephen J. Bailey ◽  
Marco Giorgino
Keyword(s):  
Transaction Costs ◽  
Strategic Alliances ◽  
Risk Sharing ◽  
Strategic Alliance ◽  
Incomplete Contracts ◽  
Strategic Partnership ◽  
Risk Governance ◽  
Public And Private ◽  
Content Type ◽  
Definition Of

Purpose – Public-private partnerships (PPPs) are characterised by contracts which are necessarily incomplete due to the complexity of their contractual specifications for the contracted services combined with the long-term legal obligations they create. This creates high transaction costs including sharing (and so bearing) risks. The purpose of this paper is to investigate the link between risk sharing and governance, providing a new perspective for analysis with less emphasis on transaction costs and more on PPPs as strategic alliances. Design/methodology/approach – Three main issues are analysed. First, the definition of PPP in terms of both the type of arrangements and the actors involved, structures varying from one country to another and between contracts. Second, the definition of strategic alliance, identifying which form(s) of PPP is a strategic partnership. Third, reconsideration of incomplete contract theory to identify the circumstances where a strategic alliance can accommodate high transaction costs. Findings – The paper concludes that establishing PPPs as strategic alliances could rectify problems of incomplete contracts by implementing a multidimensional (rather than technocratic) approach to risk governance. Originality/value – The contribution to knowledge provided by this study is rooted in the conceptualization of PPPs as strategic alliances by distinguishing the tangible characteristics of strategic alliance related to the letter of the contract from the intangible characteristics related to the spirit of the contract with the main purpose being to create both public and private value.

The role of innovation in building competitive advantages: an empirical investigation

2018 ◽  
Vol 21 (1) ◽  
pp. 44-69 ◽  
Author(s):  
Prodromos Chatzoglou ◽  
Dimitrios Chatzoudes
Keyword(s):  
Competitive Advantage ◽  
Conceptual Framework ◽  
Empirical Investigation ◽  
Primary Data ◽  
Empirical Literature ◽  
Competitive Advantages ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact ◽  
Structured Questionnaire

Purpose Nowadays, innovation appears as one of the main driving forces of organisational success. Despite the above fact, its impact on the propensity of an organisation to develop and sustain a competitive advantage has not yet received sufficient empirical investigation. The purpose of this paper is to enhance the existing empirical literature by focusing on the antecedents of innovation and its impact on competitive advantage. It proposes a newly developed conceptual framework that adopts a three-step approach, highlighting areas that have rarely been simultaneously examined before. Design/methodology/approach The examination of the proposed conceptual framework was performed with the use of a newly developed structured questionnaire that was distributed to a group of Greek manufacturing companies. The questionnaire has been successfully completed by chief executive officers (CEOs) from 189 different companies. CEOs were used as key respondents due to their knowledge and experience. The reliability and the validity of the questionnaire were thoroughly examined. Empirical data were analysed using the structural equation modelling technique. The study is empirical (based on primary data), explanatory (examines cause and effect relationships), deductive (tests research hypotheses) and quantitative (includes the analysis of quantitative data collected with the use of a structured questionnaire). Findings Results indicate that knowledge management, intellectual capital, organisational capabilities and organisational culture have significant direct and indirect effects on innovation, underlining the importance of their simultaneous enhancement. Finally, the positive effect of innovation on the creation of competitive advantages is empirically validated, bridging the gap in the relevant literature and offering avenues for additional future research. Originality/value The causal relationship between innovation and competitive advantage, despite its significant theoretical support, has not been empirically validated. The present paper aspires to bridge this gap, investigating the impact of innovation on the development of competitive advantages. Moreover, the present study adopts a multidimensional approach that has never been explored in the existing innovation literature, making the examination of the proposed conceptual framework an interesting research topic.

Knowledge transfer roles of subsidiaries in MNCs’ networks

2019 ◽  
Vol 29 (4) ◽  
pp. 329-346 ◽  
Author(s):  
Cigdem Baskici
Keyword(s):  
Knowledge Transfer ◽  
Single Case ◽  
Research Question ◽  
Hierarchical Structures ◽  
Knowledge Flows ◽  
Consumer Electronics ◽  
Knowledge Network ◽  
Content Type ◽  
Knowledge Based

Purpose Although there have been a considerable number of studies regarding subsidiary role typology in multinationals’ management literature, there appear to be few studies that consider knowledge-based role typology from the network-based perspective. The purpose of this study is to fill this gap and extend the study of Gupta and Govindarajan (1991). Thus, the study focuses on answering the following research question: Do subsidiaries have different roles in terms of knowledge flows within a multinational company (MNC)? Design/methodology/approach This empirical study has been carried out as an explorative single case study. An MNC with 15 foreign subsidiaries headquartered in Turkey, which operated in the manufacturing of household appliances and consumer electronics, has been selected as the case. Knowledge transfer is analyzed in this MNC from the network perspective. Findings Four role typologies are detected for subsidiaries of the MNC: collector transmitter, collector diffuser, converter transmitter and converter diffuser. Research limitations/implications Findings of this study are specific to this case. Testing the findings in a sample consisting of subsidiaries of MNCs producing transnational products may contribute to the generalizability of these roles. Practical implications This study offers potentially important findings for MNC managers to use. First, in this study, knowledge flows' route could be defined within MNCs’ dual network. Second, role typologies could inform MNC managers to design their MNCs’ knowledge network. Originality/value The suggested typologies are expected to more accurately define the roles of subsidiaries within contemporary MNCs which are accepted to be transformed from hierarchical structures to network-based organizations.

Information risk, stock returns, and asset pricing: Evidence from China

2017 ◽  
Vol 30 (4) ◽  
pp. 379-394 ◽  
Author(s):  
Raheel Safdar ◽  
Chen Yan
Keyword(s):  
Stock Returns ◽  
Factor Model ◽  
Empirical Literature ◽  
Firm Level ◽  
Cross Sectional ◽  
Market Pricing ◽  
Content Type ◽  
Information Risk ◽  
Accruals Quality ◽  
Three Factor

Purpose This study aims to investigate information risk in relation to stock returns of a firm and whether information risk is priced in China. Design/methodology/approach The authors used accruals quality (AQ) as their measure of information risk and performed Fama-Macbeth regressions to investigate association of AQ with future realized stock returns. Moreover, two-stage cross-sectional regression analysis was performed, both at firm level and at portfolio level, to test if the AQ factor is priced in China in addition to existing factors in the Fama French three-factor model. Findings The authors found poor AQ being associated with higher future realized stock returns. Moreover, they found evidence of market pricing of AQ in addition to existing factors in the Fama French three-factor model. Further, subsample analysis revealed that investors value AQ more in non-state owned enterprises than in state owned enterprises. Research limitations/implications The study sample comprises A-shares only and the generalization of the findings is limited by the peculiar institutional and economic setup in China. Originality/value This study contributes to market-based accounting literature by providing further insight into how and if investors value information risk, and it seeks to fill gap in empirical literature by providing evidence from the Chinese capital market.

scholarly journals The job demands-resources model and the international work context – a systematic review

2014 ◽  
Vol 2 (3) ◽  
pp. 260-279 ◽  
Author(s):  
Lucy T.B. Rattrie ◽  
Markus G. Kittler
Keyword(s):  
Systematic Review ◽  
Empirical Studies ◽  
Domestic Work ◽  
Job Demands ◽  
Empirical Literature ◽  
Future Research ◽  
Content Type ◽  
International Work ◽  
Work Related ◽  
Work Contexts

Purpose – The purpose of this paper is to provide a synthesis and evaluation of literature surrounding the job demands-resources (JD-R) model (Demerouti et al., 2001) in the first decade since its inception, with particular emphasis on establishing an evidence-based universal application towards different national and international work contexts. Design/methodology/approach – The study uses a systematic review approach following the stages suggested by Tranfield et al. (2003). Based on empirical data from 62 studies, the authors systematically analyse the application of the JD-R model and queries whether it is applicable outside merely domestic work contexts. Findings – The authors find convincing support for the JD-R model in different national contexts. However, the authors also found an absence of studies employing the JD-R model in cross-national settings. None of the empirical studies in the sample had explicitly considered the international context of today’s work environment or had clearly associated JD-R research with the IHRM literature. Research limitations/implications – Based on the wide acceptance of the JD-R model in domestic work contexts and the increased interest in work-related outcomes such as burnout and engagement in the IHRM literature, the study identifies a gap and suggests future research applying the JD-R model to international work and global mobility contexts. Originality/value – This study is the first to systematically assess the application of the JD-R model in domestic and international work contexts based on a systematic review of empirical literature in the first decade since the inception of the model. The study identifies a lack of internationally focussed JD-R studies and invites further empirical research and theoretical extensions.

Shared leadership and team creativity: a team level mixed-methods study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lei Xie ◽  
Soo Jeoung Han ◽  
Michael Beyerlein ◽  
Jiacheng Lu ◽  
Lillian Vukin ◽  
...  
Keyword(s):  
Mixed Methods ◽  
Shared Leadership ◽  
Structural Equation ◽  
Research Question ◽  
Self Report ◽  
Equation Modeling ◽  
Team Creativity ◽  
Content Type ◽  
Video Recordings ◽  
Multi Level

Purpose This paper aims to conduct two studies to investigate shared leadership and team creativity (TC) in leaderless short-term project teams (STPTs). Design/methodology/approach To answer the research question, this paper used a multi-level mixed-methods design. This paper analyzed video recordings, transcripts of STPTs’ collaboration and self-report surveys from an international engineering competition. In Study 1, this paper attempted to connect relation-oriented shared leadership (ROSL) and task-oriented shared leadership (TOSL) with TC by coding video recordings. In Study 2, this paper further investigated the proposed positive relationship between shared leadership and TC by surveying a sample of 166 students in 51 teams. Findings In Study 1, this paper found that shared leadership covaries with TC following a similar behavioral pattern. In Study 2, multi-level structural equation modeling results suggested that both TOSL and ROSL are positively correlated with TC. Originality/value In this mixed-methods multi-level research, this paper found that when the team’s shared leadership increases, their TC activity becomes frequent. This paper confirmed the qualitative finding by quantitatively investigated the relationship between shared leadership and creativity at the team level.

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.

Decoding and designing massive open online courses (MOOCs)

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Archana Shrivastava ◽  
Ashish Shrivastava
Keyword(s):  
Factor Analysis ◽  
Online Education ◽  
Product Design ◽  
Online Courses ◽  
Research Question ◽  
Massive Open Online Courses ◽  
Purchase Decision ◽  
Relative Importance ◽  
Massive Open Online ◽  
Content Type

Purpose This study aims to investigate the attributes of the online programme that are considered and compute their relative importance in the purchase decision. This study aims to identify the most lucrative bundling of these attributes and their levels that can be used by online education companies to craft their product design strategy to attract customers with the most attractive offering. Design/methodology/approach This research paper endeavours to identify the attributes of online education, which customers consider for making a purchase decision. Exploratory factor analysis followed by confirmatory factor analysis was used to identify the key attributes of online education programmes. This paper uses the conjoint analysis technique to identify the most preferred bundling of attributes, which online education companies can package to attract customers. Findings Based on various attributes and their respective levels, it is evident the most lucrative design for attracting customers to buy online education programmes is to provide certification from a reputed international university, which requires an investment to the tune of 3,000–5,000. The duration of four weeks with asynchronous pedagogy and access to course material vial uniform resource locator (URL) is a preferred feature. Access via a mobile application is more preferred over Web access. A phone application is known to be optimised, and most people are using mobile phones to access the internet. Online certification or degrees that are considered as valid employment qualifications were most preferred over other reasons. Originality/value There is a dearth of studies on massive open online courses (MOOCs) from a product design perspective. There is a gap in the context of the features to be included in the MOOCs package so that the customer can find more value in it, and the companies can benefit by expanding their customer base. The research question which this study endeavours to explore is what attributes consumers of MOOCs consider when making a purchase decision. This study will also find the relative importance of these attributes.

Administrative risks challenging the adoption of smart contracts in construction projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asli Pelin Gurgun ◽  
Kerim Koc
Keyword(s):  
Construction Projects ◽  
Risk Mitigation ◽  
Research Question ◽  
Group Discussion ◽  
Mitigation Strategies ◽  
Risk Category ◽  
Smart Contracts ◽  
Content Type ◽  
Smart Contract ◽  
Criteria Weights

PurposeAs a remedy to usually voluminous, complicated and not easily readable construction contracts, smart contracts can be considered as an effective and alternative solution. However, the construction industry is merely known as a frontrunner for fast adoption of recent technological advancements. Numerous administrative risks challenge construction companies to implement smart contracts. To highlight this issue, this study aims to assess the administrative risks of smart contract adoption in construction projects.Design/methodology/approachA literature survey is conducted to specify administrative risks of smart contracts followed by a pilot study to ensure that the framework is suitable to the research question. The criteria weights are calculated through the fuzzy analytical hierarchy process method, followed by a sensitivity analysis based on degree of fuzziness, which supports the robustness of the developed hierarchy and stability of the results. Then, a focus group discussion (FGD) is performed to discuss the mitigation strategies for the top-level risks in each risk category.FindingsThe final framework consists of 27 sub-criteria, which are categorized under five main criteria, namely, contractual, cultural, managerial, planning and relational. The findings show that (1) regulation change, (2) lack of a driving force, (3) works not accounted in planning, (4) shortcomings of current legal arrangements and (5) lack of dispute resolution mechanism are the top five risks challenging the adoption of smart contracts in construction projects. Risk mitigation strategies based on FGD show that improvements for the semi-automated smart contract drafting are considered more practicable compared to full automation.Originality/valueThe literature is limited in terms of the adoption of smart contracts, while the topic is receiving more attention recently. To support easy prevalence of smart contracts, this study attempts the most challenging aspects of smart contract adoption.

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