Economic recovery and inflation risk: what is the “price” to manage debt?

2021 ◽  
Vol 16 (2) ◽  
pp. 21-34
Author(s):  
Gianluca Macchia ◽  
Keyword(s):  
Portfolio Management ◽  
Asset Allocation ◽  
Ad Hoc ◽  
Government Debt ◽  
Economic Recovery ◽  
Stress Tests ◽  
Policy Makers ◽  
Public Investments ◽  
Investment Portfolios ◽  
The Impact

It is clear the action of policy makers aimed at supporting the economic recovery, holding up consumption in the short term as well as public investments in the long terms. Furthermore, policy makers exploit a favorable monetary policy as long as inflation allows it. This effect can be surely considered a current and future issue that impacts on the levels of government debt, the sustainability and the new Fed overshooting strategy for inflation (AIT) which makes flexible the optimal 2% target. In terms of portfolio management, these effects are very negative considering both the exposure to government debt and the impact on the credit and equity assets. High levels of inflation are certainly useful in order to manage the debt in real terms, but it could turn to be a risk for portfolio management. This study aims to show how these risks linked with inflation can impact on the value of the different types of investment portfolios characterized by different levels of volatility, different asset classes and equity/corporate factor exposures. Through the application of a composite scenario on several variables, ad-hoc stress tests and scenarios, the article shows the key-role of an ex-ante risk management participation for a proper asset-allocation.

Herding and Delegated Portfolio Management: The Impact of Relative Performance Evaluation on Asset Allocation

2011 ◽  
Vol 01 (02) ◽  
pp. 265-292 ◽  
Author(s):  
Ernst Maug ◽  
Narayan Naik
Keyword(s):  
Performance Evaluation ◽  
Portfolio Management ◽  
Asset Allocation ◽  
Relative Performance ◽  
Optimal Contracts ◽  
Fund Managers ◽  
Portfolio Managers ◽  
Delegated Portfolio Management ◽  
The Impact ◽  
Allocation Decisions

This paper investigates the effect of fund managers' performance evaluation on their asset allocation decisions. We derive optimal contracts for delegated portfolio management and show that they always contain relative performance elements. We then show that this biases fund managers to deviate from return-maximizing portfolio allocations and follow those of their benchmark (herding). In many cases, the trustees of the fund who employ the fund manager prefer such a policy. We also show that fund managers in some situations ignore their own superior information and "go with the flow" in order to reduce deviations from their benchmark. We conclude that incentive provisions for portfolio managers are an important factor in their asset allocation decisions.

scholarly journals Passive ESG Portfolio Management—The Benchmark Strategy for Socially Responsible Investors

2021 ◽  
Vol 13 (16) ◽  
pp. 9388
Author(s):  
Julian Amon ◽  
Margarethe Rammerstorfer ◽  
Karl Weinmayer
Keyword(s):  
Financial Performance ◽  
Portfolio Management ◽  
Asset Allocation ◽  
Factor Model ◽  
Five Factor Model ◽  
Strong Support ◽  
Socially Responsible ◽  
A Value ◽  
Significant Difference ◽  
The Impact

In this article, we investigate the notion of doing well while doing good from the perspective of passive portfolio strategies. We analyze a number of asset allocation strategies based on ESG-weighting and compare their financial and ESG performance for the US and Europe. We find no significant difference in the financial performance but superior ESG performance of ESG-based strategies. It can be concluded that, compared to a naive strategy, socially responsible investors are willing to pay a small premium for the impact of the portfolio via transaction costs when rebalancing the portfolio according to their preferences for social responsibility. In addition, when comparing the ESG-based strategies to a value-weighted strategy, we observe no significant difference in ESG performance but a high degree of significance in the superior financial performance of the ESG-based strategy. We also analyze the strategies with regards to the factor loadings given by the Fama–French five-factor model and a sixth factor denoted GMB (Good minus Bad) and find significant differences across the regions and strategies. Overall, the results show strong support of ESG-based strategies being preferred by socially responsible investors but also suggest that such strategies might be preferred by conventional investors looking for a passively managed alternative compared to a value-weighted index. Furthermore, it seems that such a strategy might be a more adequate benchmark for active SRI funds.

scholarly journals Uncovering the Disconnect Between Nursing Workforce Policy Intentions, Implementation, and Outcomes: Lessons Learned From the Addition of a Nursing Assistant Role

2019 ◽  
Vol 20 (4) ◽  
pp. 228-238 ◽  
Author(s):  
Christine Duffield ◽  
Di Twigg ◽  
Michael Roche ◽  
Anne Williams ◽  
Sarah Wise
Keyword(s):  
Ad Hoc ◽  
Lessons Learned ◽  
Public Hospitals ◽  
Nursing Assistants ◽  
Nursing Assistant ◽  
Policy Makers ◽  
Individual Care ◽  
Level Data ◽  
Workforce Policy ◽  
The Impact

The use of nursing assistants has increased across health systems in the past 20 years, to alleviate licensed nurses' workload and to meet rising health care demands at lower costs. Evidence suggests that, when used as a substitute for licensed nurses, assistants are associated with poorer patient and nurse outcomes. Our multimethods study evaluated the impact of a policy to add nursing assistants to existing nurse staffing in Western Australia's public hospitals, on a range of outcomes. In this article, we draw the metainferences from previously published quantitative data and unpublished qualitative interview data. A longitudinal analysis of patient records found significantly higher rates adverse patient outcomes on wards that introduced nursing assistants compared with wards that did not. These findings are explained with ward-level data that show nursing assistants were added to wards with preexisting workload and staffing problems and that those problems persisted despite the additional resources. There were also problems integrating assistants into the nursing team, due to ad hoc role assignments and variability in assistants' knowledge and skills. The disconnect between policy intention and outcomes reflects a top-down approach to role implementation where assistants were presented as a solution to nurses' workload problems, without an understanding of the causes of those problems. We conclude that policy makers and managers must better understand individual care environments to ensure any new roles are properly tailored to patient and staff needs. Further, standardized training and accreditation for nursing assistant roles would reduce the supervisory burden on licensed nurses.

scholarly journals THE ROLE OF FINANCIAL SUPPORT FOR THE PERFORMANCE AND SURVIVAL OF MICRO-ENTERPRISES

2021 ◽  
Author(s):  
Ilona BEIZITERE ◽  
Biruta SLOKA ◽  
Ieva BRENCE
Keyword(s):  
Financial Support ◽  
Ad Hoc ◽  
External Financing ◽  
Policy Makers ◽  
Preventative Measures ◽  
Support Policy ◽  
The Impact ◽  
Practical Implications ◽  
Micro Enterprises

Purpose – to examine the Latvian micro-enterprises having indicated the external financing as an important factor for their development. Research methodology – the results of the ad hoc survey (WAPI) on companies registered in Latvia in nationally defined sectors are used. Valid responses were received from 2.511 companies, of which 1.879 were micro-enterprises, the results were processed by using the SPSS programme. Findings – micro-enterprises that have not received the necessary external financing in previous years were less sustainable in the later period. Of the liquidated micro-enterprises examined, 16% were closed in 2020. Research limitations – the study highlights the impact of the availability of finance factor on the survival of micro-enterprises. Practical implications – the findings are useful for business support policy makers to identify preventative measures to ensure the resilience of micro-enterprises in times of economic turmoil when the spread of the Covid-19 has affected economy. Originality/Value – although scientific research on the need for financial support for companies has already been conducted in recent years, our study emphasizes the importance of access to finance for micro-enterprises.

On the Impact of Network Dynamics on a Discovery Protocol for Ad-Hoc Networks

2011 ◽  
pp. 64-82
Keyword(s):  
Natural Resources ◽  
Ad Hoc ◽  
Life Support ◽  
Natural Resources Management ◽  
Policy Makers ◽  
Knowledge Based ◽  
The People ◽  
Hoc Networks ◽  
International Conventions ◽  
The Impact

Deliberate exploitation of natural resources and excessive use of environmentally abhorrent materials have resulted in environmental disruptions threatening the life support systems. A human centric approach of development has already damaged nature to a large extent. This has attracted the attention of environmental specialists and policy makers. It has also led to discussions at various national and international conventions. The objective of protecting natural resources cannot be achieved without the involvement of professionals from multidisciplinary areas. This chapter recommends a model for the creation of knowledge-based systems for natural resources management. Further, it describes making use of unique capabilities of remote sensing satellites for conserving natural resources and managing natural disasters. It is exclusively for the people who are not familiar with the technology and who are given the task of framing policies.

Dow Jones Islamic Index firms: how profitable are they?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naseem Al Rahahleh ◽  
Serkan Akguc ◽  
Turki Abalala
Keyword(s):  
Financial Crisis ◽  
Asset Allocation ◽  
Operating Performance ◽  
Multivariate Regression Analysis ◽  
Content Type ◽  
Fund Managers ◽  
Final Sample ◽  
Equity Funds ◽  
Investment Portfolios ◽  
The Impact

Purpose The purpose of this paper is to examine the operating performance of Dow Jones Islamic Index (DJII) firms vs non-DJII firms. It also explores the impact of the 2007–2008 financial crisis on the operating performance of firms included under DJII relative to a comparable set of firms (i.e. industry-size matched) that are not included in the DJII. Design/methodology/approach The final sample consisted of 1,128 unique firms (or 5,669 observations) in the DJII sample and 9,501 unique firms (or 55,889 observations) in the non-DJII sample. The paper uses a unique dataset from S&P’s Compustat North America database during the period of 2005–2014. This study uses univariate tests complemented with multivariate regression analysis to gain further insight into the influence of Shariah compliance on the operating performance of firms during the crisis. Findings The paper shows that DJII firms were more profitable than non-DJII firms during the sample period. In addition, DJJI firms’ profitability was not affected as much during the financial crisis as non-DJII firms. This finding is robust to various model specifications and to alternative definitions of operating profitability. Research limitations/implications Corporate governance and managerial characteristics and the possible effects of these on operational performance are not considered herein. Practical implications Investors and fund managers could benefit from investing in Islamicly permissible equity funds when constructing investment portfolios in regard to asset allocation and policy responses to financial crises. Originality/value The present paper uses a unique sample and timeframe to show that the characteristics that makes a firm Shariah-compliant also leads to much higher operating profitability and reduces the impact of the financial crisis on firm profitability.

Markets for Purchased Farm Inputs

2005 ◽  
pp. 60-71
Author(s):  
E. Serova ◽  
O. Shick
Keyword(s):  
Agricultural Policy ◽  
Financial Constraints ◽  
Information Sources ◽  
Animal Feed ◽  
Government Policies ◽  
Market Institutions ◽  
Policy Makers ◽  
Government Organizations ◽  
The Impact ◽  
Farm Inputs

Russian policy makers argue that agriculture suffers from decapitalization due to financial constraints faced by producers. This view is the basis for the national agricultural policy, which emphasizes reimbursement of input costs and substitutes government and quasi-government organizations for missing market institutions. The article evaluates the availability of purchased farm inputs, the efficiency of their use, the main problems in the emergence of market institutions, and the impact of government policies. The analysis focuses on five groups of purchased inputs: farm machinery, fertilizers, fuel, seeds, and animal feed. The information sources include official statistics and data from two original surveys.

Managing Service Quality, Food Quality, Price Fairness and Customer Retention: A Holistic Perspective

2020 ◽  
Vol 2 (1) ◽  
pp. 1-5
Author(s):  
Ammar Ahmed ◽  
Rafat Naseer ◽  
Muhammad Asadullah ◽  
Hadia Khan
Keyword(s):  
Service Quality ◽  
Food Quality ◽  
Service Sector ◽  
Customer Retention ◽  
Price Fairness ◽  
Policy Makers ◽  
Restaurant Management ◽  
The Subject ◽  
Research Propositions ◽  
The Impact

In this competitive environment, organizations strive to satisfy their customer by providing best quality service at affordable and fair prices with a view to enhance their revenues. To achieve the objective of revenue maximization, organizations strive to identify the factors that help them in retaining their customers. Drawing from the signalling theory of marketing, the current study proposes a novel conceptual model representing the impact of service quality with food quality and price fairness on customer retention in restaurant sector of Pakistan. The paper underlines an important arena of knowledge for academicians as well as organizational scientists on the subject. On the basis of literature available on the variables understudy, the present study forwards eight research propositions worthy of urgent scholarly attention. The conceptualized model of the present article can also be viewed significant in unleashing further avenues for the restaurant management entities, policy makers and future researchers in the domain of managing in the service sector businesses.

Materialism and Green Purchase Intention: A Study of Urban Vietnamese Consumers

2017 ◽  
pp. 89-106 ◽  
Author(s):  
Mai Nguyen Thi Tuyet ◽  
Hung Nguyen Vu ◽  
Linh Nguyen Hoang ◽  
Minh Nguyen Hoang
Keyword(s):  
Conceptual Framework ◽  
Survey Data ◽  
Purchase Intention ◽  
Behavioral Control ◽  
Subjective Norm ◽  
Perceived Behavioral Control ◽  
Policy Makers ◽  
Tpb Model ◽  
Research Findings ◽  
The Impact

This study focuses on examining the impact of three components of materialism on green purchase intention for urban consumers in Vietnam, an emerging economy. An extended Theory of Planned Behavior (TPB) is applied as the conceptual framework for this study. The hypotheses are empirically tested using survey data obtained from consumers in Hanoi, the capital of Vietnam. The regression results show support for most of our hypotheses. The findings indicate that two out of three facets of materialism are significant predictors of green purchase intention. Specifically, success is found to be negatively related to purchase intention, while happiness is related positively to the intention. All three antecedents in the TPB model, including attitude towards green purchase, subjective norm, and perceived behavioral control are also found to have positive impacts on purchase intention. The research findings are discussed and implications for managers and policy makers are provided.

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