Gross profitability and momentum

2018 ◽  
Vol 44 (8) ◽  
pp. 992-1011
Author(s):  
Ajay Bhootra
Keyword(s):  
Design Methodology ◽  
Investment Strategy ◽  
Superior Performance ◽  
Momentum Strategy ◽  
Short Side ◽  
Content Type ◽  
Strong Performance ◽  
Potential Factors ◽  
Combined Strategy ◽  
Practical Implications

Purpose The purpose of this paper is to examine the combined performance of momentum and a gross profitability-based strategy. The motivation stems from the strong performance of momentum on the short side and profitability on the long side, suggesting a potentially superior combined strategy. Gross profitability is also a measure of firm quality, so that another motivation is to contribute to a growing literature on factor-based investing that includes momentum and quality as potential factors. Design/methodology/approach The empirical approach employed in the paper is standard in the asset pricing literature. The firms are sorted into portfolios based on profitability and momentum, and the combined performance is studied through independent double sorting. Both value-weighted and equally weighted returns are reported in case of key empirical results. Findings The combined strategy results in superior performance. Specifically, the strategy produces results 2.75 greater than the momentum strategy, and about four times as high as the profitability strategy. The strategy also has much higher Sharpe ratio that improves further when combined with size and value strategies. Research limitations/implications The research has significant implications for academics and practitioners alike. A new investment strategy that has not been explored in the literature is presented. The superior performance of the strategy presents a challenge for the market efficiency, and would be of interest to academics and practitioners working in the area of investment management. Practical implications There has been a growing interest in multi-factor investing in recent years. The paper documents that superior performance is achieved by combining two of the popular factors, namely profitability and momentum. Originality/value The research is the first to study the combined performance of profitability and momentum, and provide evidence on the superiority of the combined strategy.

Opportunities and constraints of women entrepreneurs in Jordan: an update of the 5Ms framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tala Abuhussein ◽  
Tamer Koburtay
Keyword(s):  
Women Entrepreneurs ◽  
Design Methodology ◽  
Arab Countries ◽  
Structured Interviews ◽  
Content Type ◽  
Theoretical Contribution ◽  
Market Management ◽  
Potential Factors ◽  
Extended View ◽  
Practical Implications

PurposeDrawing on the “5Ms” gender cognizant framework, this study seeks to investigate how money, motherhood, management, the market and the macro/meso environment dimensions of the 5Ms may influence women's entrepreneurship in Jordan. A related aim is to offer in-depth insights and a fresh understanding of potential factors not included in the original 5Ms model.Design/methodology/approachThe study takes a qualitative-inductive approach, using semi-structured interviews with 14 women entrepreneurs from various industries in Jordan.FindingsThe paper highlights the positive (or adverse) impact of the 5Ms factors (motherhood, macro/meso environment, the market, management and money) on women entrepreneurs in Jordan and introduces new emerging factors. The paper concludes with an extended view of the 5Ms model.Practical implicationsThis study may help develop greater sensitivity and understanding about some of the adverse gender practices faced by women entrepreneurs. Policymakers in Jordan and other Arab countries may consider empowering women entrepreneurs in terms of offering more financial funds and facilities, social support, and managerial empowerment.Originality/valueThe study creates more sensitivity and awareness about the current dynamics, opportunities and impediments that affect women entrepreneurs; thus, it contributes to the extant literature by suggesting new propositions and a novel framework. This study extends Brush et al.'s (2009) 5Ms gendered framework by adding three important factors (Mental health, Maturity and Maintainability). The empirical update and contextual extension of Brush et al.'s (2009) 5Ms model highlight a theoretical contribution.

Leading in the connected era

2014 ◽  
Vol 42 (1) ◽  
pp. 37-46 ◽  
Author(s):  
Saul Berman ◽  
Peter Korsten
Keyword(s):  
Design Methodology ◽  
Rapid Change ◽  
Superior Performance ◽  
Institutional Diversity ◽  
Content Type ◽  
Face To Face ◽  
Constant Change ◽  
Collaborative Cultures ◽  
Practical Implications ◽  
Future Plans

Purpose – Leaders are recognizing that the current connected era is fundamentally changing how customers, employees and partners engage, according to an IBM survey of CEOs and senior public sector leaders from around the globe. Design/methodology/approach – Between September 2011 and January 2012, IBM leaders met face to face with leaders worldwide to better understand their future plans and challenges in an increasingly connected economy. The CEOs surveyed lead organizations of different sizes in 64 countries and 18 industries The analysis also sought to understand differences between responses of CEOs in financially outperforming organizations and those in underperforming organizations. Findings – Key survey findings include: CEOs are creating more open and collaborative cultures – encouraging employees to connect, learn from each other and thrive in a world of rapid change; the emphasis on openness and collaboration is even higher among outperforming organizations; to engage customers as individuals, CEOs are investing in customer insights more than any other functional area; and extensive partnering is providing the edge CEOs need to take on radical innovation. Practical implications – Three suggested initiatives to promote superior performance are: embrace connectivity and openness; engage customers as individuals; and amplify innovation with partnerships. Originality/value – Explains that to create greater value, CEOs must take advantage of newly enabled connections with and among employees, customers and partners. Shows that to lead in this unfamiliar territory amid constant change, CEOs will need to learn from their own networks. They will need to assemble those networks like portfolios – with generational, geographic, institutional diversity. Then, they will need to help their organizations do the same.

scholarly journals Copula methods for evaluating relative tail forecasting performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ángel León ◽  
Trino-Manuel Ñíguez
Keyword(s):  
Design Methodology ◽  
Screening Strategy ◽  
Performance Measure ◽  
Superior Performance ◽  
Gaussian Copula ◽  
Portfolio Performance ◽  
Lower Tail ◽  
Content Type ◽  
Forecasting Performance ◽  
Practical Implications

PurposeThe authors apply their method to analyze which portfolios are capable of providing superior performance to those based on the Sharpe ratio (SR).Design/methodology/approachIn this paper the authors illustrate the use of conditional copulas for identifying differences in alternative portfolio performance strategies. The authors analyze which portfolios are capable of providing superior performance to those based on the SR.FindingsThe results show that under the Gaussian copula, both expected tail ratio (ETR) and skewness-kurtosis ratio portfolios exhibit remarkably low correlations respecting the SR portfolio. This means that these two portfolios are different respecting the SR one. The authors also find that copulas which focus on either the upper tail (Gumbel) or the lower tail (Clayton) render significant differences. In short, the copula analysis is useful to understand what kind of equity-screening strategy based on its corresponding performance measure (PM) performs better in relation to the SR portfolio.Practical implicationsCopula methods for evaluating relative tail forecasting performance provide an alternative tool when forecast differences are very small or found non statistically significant through standard tests.Originality/valueOur copula methods to evaluate models' performance differences are significant because when models' performance is rather similar, conclusions on statistical differences, can be defective as they may hinge on the subsample type or size used, leading to inefficient investment decisions. Our method based in copula is novel in this research topic.

The stakeholder value map: a new tool to measure success with diverse groups

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nitin Pangarkar ◽  
Natasha Pangarkar
Keyword(s):  
Value Creation ◽  
Design Methodology ◽  
Superior Performance ◽  
Multiple Stakeholders ◽  
Content Type ◽  
Organizational Contexts ◽  
Different Dimensions ◽  
Diverse Groups ◽  
Practical Implications

Purpose This study aims to propose a framework to help firms craft value-creating strategies for multiple stakeholders. Design/methodology/approach The study uses an inductive methodology based on analysing strategies for two exemplar companies, namely, Starbucks and Wagestream. Key insights about how value creation by these companies for multiple stakeholders led to their superior performance, as well as generalizable lessons from the exemplar companies, were identified. Findings The study finds that the performance of the two exemplar companies can be explained effectively through the framework. Research limitations/implications The framework proposed in the study requires a large amount of data about the value created for different stakeholders. Because the framework is comprehensive, managers need to aggregate different dimensions and varied data which can lead to manipulation or misuse by self-serving managers who wish to make their own strategies or performance look good. Practical implications The study identified specific actionable ideas that organizations can undertake to enhance the value they create for their various stakeholders. Originality/value The study is the first to develop an actionable framework that can be used by companies to craft strategies based on creating or enhancing stakeholder value. The framework is flexible with regard to application in different country, industry or organizational contexts.

The selection of popular trading strategies

2015 ◽  
Vol 41 (6) ◽  
pp. 563-581
Author(s):  
Yi-Tsai Chung ◽  
Tung Liang Liao ◽  
Yi-Chein Chiang
Keyword(s):  
Stock Markets ◽  
Design Methodology ◽  
Investment Strategy ◽  
Relative Performance ◽  
Investment Strategies ◽  
Data Set ◽  
Content Type ◽  
Portfolio Managers ◽  
Practical Implications ◽  
Selection Of

Purpose – The relative performance of five popular nonzero-investment strategies, including Size, book-to-market ratios, earnings-to-price (E/P) ratios, cash flow-to-price (CF/P) ratios and dividend-to-price ratios, and their corresponding zero-investment strategies (also known as premiums) are first examined altogether for equally weighted (EW) and value-weighted (VW) methods to check whether a certain strategy (or some strategies) could be recommended to portfolio managers as the best (better) strategy (strategies). The paper aims to discuss these issues. Design/methodology/approach – This paper uses the stochastic dominance (SD) approach, a non-parametric test, to investigate the relative performance among various strategies and help investors search for the best or better strategy (strategies). Findings – The main results show that both the highest E/P and CF/P strategies (and their corresponding premiums) generally produce higher returns than the other three strategies (and their corresponding premiums) through allocating investors’ capital between the risky and risk-free assets for the EW and VW methods, respectively. Research limitations/implications – This study only examines US stock markets by SD approach, whether the results are consistent with non-US markets still needs further investigation. The findings imply that investors can benefit by investing in the highest E/P or CF/P stocks (or their corresponding premiums) to make more profit or less loss for US stock markets. Practical implications – First, the SD findings suggest that investors or portfolio managers can allocate their funds between risky and risk-free assets to maximize their profits. Next, the simulation results again prove that the profits of each nonzero-investment or zero-investment strategy for EW portfolios are higher than those of each corresponding strategy for VW portfolios. Finally, the findings imply that portfolio managers or investors can invest in the highest E/P or CF/P stocks (or their corresponding premiums) to make more profit or less loss. Originality/value – This study first uses an extensive data set (1952-2009) to examine the relative performance of nonzero-investment strategies and their corresponding zero-investment strategies for the five popular indicators altogether for the EW and VW methods with the SD approach for US stock markets. Moreover, the results reveal that the investors or portfolio managers can invest in the highest E/P and/or CF/P portfolios (or their corresponding premiums) to make more profit or less loss.

scholarly journals The early bird and the late bird: which catches more worms in Australia?

2019 ◽  
Vol 15 (4) ◽  
pp. 658-668
Author(s):  
Nirodha Imali Jayawardena ◽  
Akihiro Omura ◽  
Bin Li
Keyword(s):  
Design Methodology ◽  
Price Volatility ◽  
Investment Strategy ◽  
Trading Strategy ◽  
Optimal Time ◽  
Individual Investors ◽  
Content Type ◽  
Day Trading ◽  
Buying In ◽  
Practical Implications

Purpose The purpose of this paper is to examine what the optimal time is in a typical trading day for investors to buy/sell stocks in the Australian stock market. Design/methodology/approach The study mainly focuses on the S&P/ASX200. Each trading day, between 10:00 a.m. and 4:00 p.m., is divided into 30-min blocks. The effectiveness of easily implementable trading strategy to purchase the index in the morning and sell at the close is tested. The study controls for the excess overnight price volatility to improve the effectiveness of the investment strategy. This trading strategy is compared against other 66 possible day-trading combinations. Findings The results show that the trading strategy of buying in the first 30 min of the trading session and close off the position during the last 30 min obtains higher returns than other 66 strategies. Practical implications The day-trading strategy proposed in this study is very simple and therefore can be easily implemented by investors including individual investors. Originality/value To the best of our knowledge, this is the first study which constructs a trading strategy using the J- or U-shaped intraday return pattern.

Automatic generation of a section erection planning for European shipyards building complex ships

2016 ◽  
Vol 27 (4) ◽  
pp. 483-501
Author(s):  
Christopher Rose ◽  
Jenny Coenen
Keyword(s):  
Design Methodology ◽  
Pareto Front ◽  
Fitness Function ◽  
Automatic Generation ◽  
Superior Performance ◽  
Computational Time ◽  
Content Type ◽  
Starting Point ◽  
Process Constraints ◽  
Practical Implications

Purpose – The purpose of this paper is to present a method for generating a set of feasible, optimized production schedules for the erection process of compact shipyards building complex ship types. Design/methodology/approach – A bi-objective mathematical model is developed based on the process constraints. A Pareto front of possible erection schedules is created using a the Non-dominated Sorting Genetic Algorithm II with a custom heuristic fitness function and constraint violation. Findings – It was possible to consistently generate a wide variety of production schedules with superior performance to those manually created by shipyard planner in negligible computational time. Practical implications – The set of optimized production schedules generated by the developed methodology can be used as a starting point by existing shipyard planners when drafting the initial erection planning for a new project. This allows the planners to consider wider variety of options in less time. Originality/value – No other published approach for the automatic generation of optimized production schedules of the erection process is specifically tailored to the construction of complex ships.

Consumer value creation through WhatsApp use

2019 ◽  
Vol 32 (4) ◽  
pp. 455-471
Author(s):  
Jorge Cruz-Cárdenas ◽  
Jorge Guadalupe-Lanas ◽  
Ekaterina Zabelina ◽  
Andrés Palacio-Fierro ◽  
Margarita Velín-Fárez ◽  
...  
Keyword(s):  
Latin American ◽  
Value Creation ◽  
Emotional Support ◽  
Design Methodology ◽  
Instant Messaging ◽  
Role Performance ◽  
Content Type ◽  
Consumer Value ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to understand in-depth how consumers create value in their lives using WhatsApp, the leading mobile instant messaging (MIM) application. Design/methodology/approach The study adopts the perspective of customer-dominant logic (CDL) and uses a qualitative multimethod design involving 3 focus groups and 25 subsequent in-depth interviews. The research setting was Ecuador, a Latin American country. Findings Analysis and interpretation of the participants’ stories made it possible to identify and understand the creation of four types of value: maintaining and strengthening relationships; improving role performance; emotional support; and entertainment and fun. In addition, the present study proposes a conceptual model of consumer value creation as it applies to MIM. Practical implications Understanding the way consumers create value in their lives using MIM is important not only for organizations that offer MIM applications, but also for those companies that develop other applications for mobile phones or for those who wish to use MIM as an electronic word-of-mouth vehicle. Originality/value The current study is one of the first to address the topic of consumer behavior in the use of technologies from the perspective of CDL; this perspective enables an integrated qualitative vision of value creation in which the consumer is the protagonist.

scholarly journals Advantages and potential challenges of data management in e-maintenance

2019 ◽  
Vol 25 (3) ◽  
pp. 378-396 ◽  
Author(s):  
Arian Razmi-Farooji ◽  
Hanna Kropsu-Vehkaperä ◽  
Janne Härkönen ◽  
Harri Haapasalo
Keyword(s):  
Data Management ◽  
Design Methodology ◽  
Management Practices ◽  
Future Research ◽  
Conceptual Approach ◽  
Content Type ◽  
Different Types ◽  
Maintenance Systems ◽  
Industry Leader ◽  
Practical Implications

Purpose The purpose of this paper is twofold: first, to understand data management challenges in e-maintenance systems from a holistically viewpoint through summarizing the earlier scattered research in the field, and second, to present a conceptual approach for addressing these challenges in practice. Design/methodology/approach The study is realized as a combination of a literature review and by the means of analyzing the practices on an industry leader in manufacturing and maintenance services. Findings This research provides a general understanding over data management challenges in e-maintenance and summarizes their associated proposed solutions. In addition, this paper lists and exemplifies different types and sources of data which can be collected in e-maintenance, across different organizational levels. Analyzing the data management practices of an e-maintenance industry leader provides a conceptual approach to address identified challenges in practice. Research limitations/implications Since this paper is based on studying the practices of a single company, it might be limited to generalize the results. Future research topics can focus on each of mentioned data management challenges and also validate the applicability of presented model in other companies and industries. Practical implications Understanding the e-maintenance-related challenges helps maintenance managers and other involved stakeholders in e-maintenance systems to better solve the challenges. Originality/value The so-far literature on e-maintenance has been studied with narrow focus to data and data management in e-maintenance appears as one of the less studied topics in the literature. This research paper contributes to e-maintenance by highlighting the deficiencies of the discussion surrounding the perspectives of data management in e-maintenance by studying all common data management challenges and listing different types of data which need to be acquired in e-maintenance systems.

An exploratory empirical study of whistleblowing and whistleblowers

2020 ◽  
Vol 27 (3) ◽  
pp. 755-770
Author(s):  
Maria Krambia-Kapardis
Keyword(s):  
Statistical Analysis ◽  
Design Methodology ◽  
Research Topic ◽  
Due Date ◽  
Content Type ◽  
Unethical Behaviour ◽  
Eu Member States ◽  
European Directive ◽  
Original Survey ◽  
Practical Implications

Purpose The purpose of this study is to develop a profile of whistleblowers and to determine whether whistleblowing legislation would encourage those individuals to bring to light some illegal or unethical behaviour that otherwise would remain in the shadows. Design/methodology/approach Having identified whistleblowing correlation, a survey was carried out in Cyprus of actual whistleblowers and could-have-been whistleblowers. Findings Males between 46 and55 years of age, regardless of whether they have dependents or hold senior positions in organizations are significantly more likely to blow the whistle. However, could-have-been whistleblowers did not go ahead because they felt that the authorities would not act on their information. Research limitations/implications Because of the sensitive nature of the research topic and the fact that only whistleblowers or intended whistleblowers could participate in the study, the sample size is limited as a result. This, in turn, limits both the number of respondents in each category (actual and intended) as well as constrains the statistical analysis that could be carried out on the data. Practical implications It remains to be seen whether EU Member States shall implement the European Directive 2019/1937 on the protection of persons who report breaches of Union Law, in its entirety by the due date, namely December 2021. Originality/value This study provides a literature review of whistleblowing and reports an original survey against the backdrop of the European Directive.

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