Asset Pricing with Status Risk

2011 ◽  
Vol 01 (03) ◽  
pp. 495-549 ◽  
Author(s):  
Yoel Krasny
Keyword(s):  
Factor Model ◽  
Empirical Literature ◽  
Idiosyncratic Volatility ◽  
High Status ◽  
Portfolio Choices ◽  
Status Seeking ◽  
The Status ◽  
High Volatility ◽  
The Impact ◽  
Significant Support

This paper examines the impact of status-seeking considerations on investors' portfolio choices and asset prices in a general equilibrium setting. The economy studied in this paper consists of traditional ("Markowitz") investors as well as status-seekers who are concerned about relative wealth. The model highlights the strategic and interdependent nature of portfolio selection in such a setting: Low-status investors look for portfolio choices that maximize their chances of moving up the ladder while high-status investors look to maintain the status quo and hedge against these choices of the low-status investors. In equilibrium, asset returns obey a novel two-factor model in which one factor is the traditional market factor and the other is a particular "high volatility factor" that does not appear to have been identified so far in the theoretical or empirical literature. This two-factor model found significant support when tested with stock market data. Of particular interest is that the model and the empirical results attribute the low returns on idiosyncratic volatility stocks to their covariance with the portfolio of highly volatile stocks held by investors with relatively low status.

Going for the gold: Status-seeking behavior and Olympic performance

2013 ◽  
Vol 16 (3) ◽  
pp. 244-261 ◽  
Author(s):  
J. Patrick Rhamey ◽  
Bryan R. Early
Keyword(s):  
Social Identity Theory ◽  
Olympic Games ◽  
International System ◽  
Status Seeking ◽  
The Status ◽  
Seeking Behavior ◽  
Political Value ◽  
The Impact ◽  
International Status ◽  
The Olympic Games

State competition for international status takes a variety of forms, but most are linked to states’ related pursuits of economic and/or military power. The Olympics offer a unique venue for states to compete with one another in a forum whose consequences do not directly spill over into either realm. Instead, states compete against one another for Olympic medals—a currency with no other international political value beyond the prestige that can be obtained with them. Leveraging a theoretical framework nested in Social Identity Theory, we develop a set of hypotheses to explain how states can be attributed international status as a result of their performance in the Olympic Games and via playing host to them. Using a linear hierarchical method of analysis, we evaluate the impact of participation in the Summer Olympics on the status attributed to members of the international system from 1960 to 2012. Our findings indicate that states whose performance exceeds expectations and smaller-sized countries that play host to the Olympic Games disproportionately gain status from their participation in the sporting regime.

The Impact of Status Seeking on Consumers’ Word of Mouth and Product Preference—A Comparison Between Luxury Hospitality Services and Luxury Goods

2016 ◽  
Vol 41 (1) ◽  
pp. 3-22 ◽  
Author(s):  
Wan Yang ◽  
Anna S. Mattila
Keyword(s):  
Word Of Mouth ◽  
Academic Research ◽  
Luxury Goods ◽  
Status Seeking ◽  
The Status ◽  
Experience Recommendation ◽  
Positive Word Of Mouth ◽  
The Impact ◽  
Product Preference

Despite the rapid growth of the luxury hospitality market, academic research has largely neglected the differences between luxury hospitality services and luxury goods, as well as the role of status seeking on luxury consumption. Relying on the status consumption and experience recommendation theories, the authors examine the combined effects of consumer characteristics (need for status) and product type (hospitality services vs. goods) on consumers’ word-of-mouth intentions. The results suggest that parvenus, who are high in need for status, are more likely to talk about their luxury goods purchases than patricians, who are low in need for status. More interestingly, both parvenus and patricians indicate equally strong intentions to spread positive word of mouth on luxury hospitality purchases. This study also extends the experience recommendation theory and reveals that parvenus are less likely to choose luxury hospitality services than patricians to advance their happiness.

Dancing with the stars: what do foreign firms get from high-status local partners?

2016 ◽  
Vol 54 (6) ◽  
pp. 1294-1319 ◽  
Author(s):  
Yang Yu ◽  
Revti Raman Sharma
Keyword(s):  
International Business ◽  
Structural Equations ◽  
Foreign Firms ◽  
High Status ◽  
Local Exchange ◽  
Content Type ◽  
Specific Investment ◽  
The Status ◽  
Local Actors ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of high-status local exchange partners on foreign firms. Design/methodology/approach – Bridging status research and international business literature, the study develops a framework that describes three prominent effects of high-status partners on foreign firms, and further links these effects to firms’ relationship outcomes. The proposed conceptual model is examined using partial least squares structural equations modeling on a sample of 96 foreign firms operating in China. Findings – The study provides evidence that high-status local exchange partners tend to seek higher relationship-specific investment from foreign firms, and in the meantime, provide firms with greater opportunities for local learning and networking; subsequently, foreign firms are more likely to achieve satisfactory outcomes in the relationships. Practical implications – These findings suggest that affiliation with high-status local actors can be a key approach to overcome the liability of foreignness in a host country. Firms therefore, should treat them carefully as an important category of exchange partner portfolios. These are particularly relevant to foreign firms competing in China, a society characterized by strong hierarchies. Originality/value – The study serves as a preliminary attempt to introduce status concept to the field of international business. It promotes status as a key criterion for local partner selection, and offers the status research a contextual insight in the dilemma of choosing high- vs low-status partner candidates.

scholarly journals Exogenous testosterone increases status-seeking motivation in men with unstable low social status

2019 ◽  
Author(s):  
Annabel B Losecaat Vermeer ◽  
Isabelle Krol ◽  
Christian Gausterer ◽  
Bernhard Wagner ◽  
Christoph Eisenegger ◽  
...  
Keyword(s):  
Social Status ◽  
Cag Repeat ◽  
Low Rank ◽  
High Status ◽  
Dependent Manner ◽  
Status Seeking ◽  
The Status ◽  
Testosterone Administration ◽  
The Stability ◽  
Competition Behavior

Testosterone is associated with status-seeking behaviors such as competition, which may depend on whether one wins or loses status, but also on the stability of one’s status. We examined (1) to what extent testosterone administration affects competition behavior in repeated social contests in men with high or low rank, and (2), whether this relationship is moderated by hierarchy stability, as predicted by the status instability hypothesis. Using a real effort-based design in healthy male participants (N = 173 males), we first found that testosterone (vs. placebo) increased motivation to compete for status, but only in individuals with a low unstable status. A second part of the experiment, tailored to directly compare stable with unstable hierarchies, indicated that exogenous testosterone again increased competitive motivation in individuals with a low unstable status, but decreased competition behavior in men with low stable status. Additionally, exogenous testosterone increased motivation in those with a stable high status. Further analysis suggested that these effects were moderated by individuals’ trait dominance, and genetic differences assessed by the androgen receptor (CAG-repeat) and dopamine transporter (DAT1) polymorphisms. Our study provides evidence that testosterone specifically boosts status-related motivation when there is an opportunity to improve one’s social status. The findings contribute to our understanding of testosterone’s causal role in status-seeking motivation in competition behavior, and indicate that testosterone adaptively increases our drive for high status in a context-dependent manner. We discuss potential neurobiological pathways through which testosterone may attain these effects on behavior.

Strategic Role of Zakat in Multidimensional Quality of Life in Sijunjung, Indonesia

2018 ◽  
Vol 15 (1) ◽  
pp. 55-72
Author(s):  
Herlin Hamimi ◽  
Abdul Ghafar Ismail ◽  
Muhammad Hasbi Zaenal
Keyword(s):  
Quality Of Life ◽  
Positive Impact ◽  
Wealth Distribution ◽  
Absolute Poverty ◽  
Before And After ◽  
The Status ◽  
Being There ◽  
The Impact

Zakat is one of the five pillars of Islam which has a function of faith, social and economic functions. Muslims who can pay zakat are required to give at least 2.5 per cent of their wealth. The problem of poverty prevalent in disadvantaged regions because of the difficulty of access to information and communication led to a gap that is so high in wealth and resources. The instrument of zakat provides a paradigm in the achievement of equitable wealth distribution and healthy circulation. Zakat potentially offers a better life and improves the quality of human being. There is a human quality improvement not only in economic terms but also in spiritual terms such as improving religiousity. This study aims to examine the role of zakat to alleviate humanitarian issues in disadvantaged regions such as Sijunjung, one of zakat beneficiaries and impoverished areas in Indonesia. The researcher attempted a Cibest method to capture the impact of zakat beneficiaries before and after becoming a member of Zakat Community Development (ZCD) Program in material and spiritual value. The overall analysis shows that zakat has a positive impact on disadvantaged regions development and enhance the quality of life of the community. There is an improvement in the average of mustahik household incomes after becoming a member of ZCD Program. Cibest model demonstrates that material, spiritual, and absolute poverty index decreased by 10, 5, and 6 per cent. Meanwhile, the welfare index is increased by 21 per cent. These findings have significant implications for developing the quality of life in disadvantaged regions in Sijunjung. Therefore, zakat is one of the instruments to change the status of disadvantaged areas to be equivalent to other areas.

Contemporary Qur'anic Studies in Iran and its Relationship with Qur'anic Studies in the West

2012 ◽  
Vol 14 (1) ◽  
pp. 45-72
Author(s):  
Morteza Karimi-Nia
Keyword(s):  
Islamic Law ◽  
Human Sciences ◽  
The West ◽  
Communications Technologies ◽  
Religious Learning ◽  
The Status ◽  
Islamic Republic Of Iran ◽  
Almost All ◽  
The Impact ◽  
The Relationship

The status of tafsīr and Qur'anic studies in the Islamic Republic of Iran has changed significantly during recent decades. The essay provides an overview of the state of Qur'anic studies in Iran today, aiming to examine the extent of the impact of studies by Western scholars on Iranian academic circles during the last three decades and the relationship between them. As in most Islamic countries, the major bulk of academic activity in Iran in this field used to be undertaken by the traditional ʿulamāʾ; however, since the beginning of the twentieth century and the establishment of universities and other academic institutions in the Islamic world, there has been increasing diversity and development. After the Islamic Revolution, many gradual changes in the structure and approach of centres of religious learning and universities have occurred. Contemporary advancements in modern sciences and communications technologies have gradually brought the institutions engaged in the study of human sciences to confront the new context. As a result, the traditional Shīʿī centres of learning, which until 50 years ago devoted themselves exclusively to the study of Islamic law and jurisprudence, today pay attention to the teaching of foreign languages, Qur'anic sciences and exegesis, including Western studies about the Qur'an, to a certain extent, and recognise the importance of almost all of the human sciences of the West.

The Impact of Quantitative Easing on Emerging Markets – Literature Review

e-Finanse ◽  
2018 ◽  
Vol 14 (4) ◽  
pp. 67-76
Author(s):  
Piotr Bartkiewicz
Keyword(s):  
Emerging Markets ◽  
Large Scale ◽  
Empirical Literature ◽  
Quantitative Easing ◽  
Methodological Choices ◽  
The Subject ◽  
Methodological Approaches ◽  
The Impact ◽  
Sufficient Precision

AbstractThe article presents the results of the review of the empirical literature regarding the impact of quantitative easing (QE) on emerging markets (EMs). The subject is of interest to policymakers and researchers due to the increasingly larger role of EMs in the world economy and the large-scale capital flows occurring after 2009. The review is conducted in a systematic manner and takes into consideration different methodological choices, samples and measurement issues. The paper puts the summarized results in the context of transmission channels identified in the literature. There are few distinct methodological approaches present in the literature. While there is a consensus regarding the direction of the impact of QE on EMs, its size and durability have not yet been assessed with sufficient precision. In addition, there are clear gaps in the empirical findings, not least related to relative underrepresentation of the CEE region (in particular, Poland).

Euratom and Brexit: Could the United Kingdom Maintain One Foot in the European Union? Current Scenarios and Future Prospects of British withdrawal from the EAEC

2018 ◽  
Vol 18 (2) ◽  
pp. 134-151
Author(s):  
Andrea Circolo ◽  
Ondrej Hamuľák
Keyword(s):  
European Union ◽  
United Kingdom ◽  
Independent Solution ◽  
Legal Regulation ◽  
The European Union ◽  
The United Kingdom ◽  
The Status ◽  
Long Time ◽  
Energy Community ◽  
The Impact

Abstract The paper focuses on the very topical issue of conclusion of the membership of the State, namely the United Kingdom, in European integration structures. The ques­tion of termination of membership in European Communities and European Union has not been tackled for a long time in the sources of European law. With the adop­tion of the Treaty of Lisbon (2009), the institute of 'unilateral' withdrawal was intro­duced. It´s worth to say that exit clause was intended as symbolic in its nature, in fact underlining the status of Member States as sovereign entities. That is why this institute is very general and the legal regulation of the exercise of withdrawal contains many gaps. One of them is a question of absolute or relative nature of exiting from integration structures. Today’s “exit clause” (Art. 50 of Treaty on European Union) regulates only the termination of membership in the European Union and is silent on the impact of such a step on membership in the European Atomic Energy Community. The presented paper offers an analysis of different variations of the interpretation and solution of the problem. It´s based on the independent solution thesis and therefore rejects an automa­tism approach. The paper and topic is important and original especially because in the multitude of scholarly writings devoted to Brexit questions, vast majority of them deals with institutional questions, the interpretation of Art. 50 of Treaty on European Union; the constitutional matters at national UK level; future relation between EU and UK and political bargaining behind such as all that. The question of impact on withdrawal on Euratom membership is somehow underrepresented. Present paper attempts to fill this gap and accelerate the scholarly debate on this matter globally, because all consequences of Brexit already have and will definitely give rise to more world-wide effects.

The Status of Mind and Intellect in Digital Environment

2020 ◽  
Vol 63 (2) ◽  
pp. 123-143
Author(s):  
Elena I. Yaroslavtseva
Keyword(s):  
Human Life ◽  
Cognitive Activity ◽  
Memory Loss ◽  
Natural Material ◽  
Human Being ◽  
Connection To Nature ◽  
Digital World ◽  
The Status ◽  
Natural Foundation ◽  
The Impact

The article examines the impact of digitalization on human life and intellectual experience. The development of computer technology demands an understanding of new aspects of human development and requires a capability to overcome not only external conditions but also ourselves. Entering a new level of development cannot imply a complete rejection of previous dispositions, but should be accompanied by reflection on personal experience and by the quest for new forms of interaction in society and with nature. Communicative and cognitive activity of a person has an ontological basis and relies on processes that actually evolve in nature. Therefore, the creation of new objects is always associated with the properties of natural material and gives rise to new points of support in the development of man. The more audacious his projects, the more important it is to preserve this connection to nature. It is always the human being who turns out to be the initiator who knows how to solve problems. The conformity of complex technical systems to nature is not only a goal but also a value of meaningful construction of development perspectives. The key to the nature orientation of the modern digital world is the human being himself, who keeps all the secrets of the culture of his natural development. Therefore, the proposed by the Russian philosopher V.S. Stepin post-non-classical approach, based on the principle of “human-sizedness,” is an important contribution to contemporary research because it draws attention to the “human – machine” communication, to the relationship between a person and technological systems he created. The article concludes that during digital transformation, a cultural conflict arises: in an effort to solve the problems of the future, a person equips his life with devices that are designed to support him, to expand his functionality, but at the same time, the boundaries of humanity become dissolved and the forms of human activity undergo simplification. Transhumanism engages society in the fight against fears of vulnerability and memory loss and ignores the flexibility and sustainability of natural foundation.

Sign in / Sign up

Export Citation Format

Share Document