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The purpose of this article is to propose a detailed methodology to estimate, model and incorporate the non-constant volatility onto a numerical tree scheme, to evaluate a real option, using a quadrinomial multiplicative recombination.

This article uses the multiplicative quadrinomial tree numerical method with non-constant volatility, based on stochastic differential equations of the GARCH-diffusion type to value real options when the volatility is stochastic.

Findings showed that in the proposed method with volatility tends to zero, the multiplicative binomial traditional method is a particular case, and results are comparable between these methodologies, as well as to the exact solution offered by the Black–Scholes model.

The originality of this paper lies in try to model the implicit (conditional) market volatility to assess, based on that, a real option using a quadrinomial tree, including into this valuation the stochastic volatility of the underlying asset. The main contribution is the formal derivation of a risk-neutral valuation as well as the market risk premium associated with volatility, verifying this condition via numerical test on simulated and real data, showing that our proposal is consistent with Black and Scholes formula and multiplicative binomial trees method.

In this paper, the authors aim to look at the relationship between divergent national corporate social policies as embedded in corporate governance regimes and the development of the firm’s organizational capabilities. More specifically, the authors illustrate how the different systems of corporate governance developed in the USA and Germany are major resource-based factors on the decision to develop production-related organizational capabilities. The authors develop an integrative framework, drawing on both the corporate governance, as well as strategic management literatures, to explain idiosyncrasies and commonalities in capability development. In the aggregate, this would lead to differential corporate social and economic performance between Germany and the USA.

This is a conceptual paper that develops a framework to link national corporate social policy as embedded in governance systems to corporate social and economic performance.

Corporate governance systems – embodying divergent corporate social responsibility (CSR) orientations vis-à-vis the firm’s stakeholders – can be viewed as determinants of group-specific resources that will not be transferable across different nation-states, leading to divergent corporate social and economic performance.

The analysis emphasizes that CSR is an essential element of corporate governance. The authors highlight that regulatory, normative and cognitive institutional structures and orientations help to utilize and configure important firm-specific, industry-specific and country-specific resources and capabilities. This framework also contributes to recent developments in the corporate governance and management literatures that position CSR as a central element of corporate governance institutions.

While there has been some convergence in corporate governance codes and securities regulations across the European Union (EU), the remaining areas of divergence are the most contentious as they reflect differences in fundamental societal norms and values. I propose that using the multinational corporation as the referent unit of analysis yields a means for making a qualitative distinction between the two regimes. I suggest that at least for firms with EU‐wide scope, certain critical elements of the German model may be more appropriate, as the neoclassical justifications of the Anglo‐American model are less reliable in such a setting.

Looks at previous research on the differences between multinational corporations (MNCs) and domestic corporations (DCs) and the theories underlying them, relating the ideas to optimal compensation packages for managers. Examines a sample of 724 MNCs and US domestic firms to compare the degree of alignment of their chief executive officer compensation packages and finds that average compensation changes for every $1,000 change in equity value are $33 for DCs and only $12 for MNCs. Analyses further to find out why and suggests that it is due to the higher‐valued investment opportunities of MNCs and differences in their corporate governance structures.

This study aims to understand the impact of extreme weather events on fast-moving consumer goods (FMCG) consumption and to examine the role of anticipated product scarcity and FMCG types on such behavior.

This paper conducted five studies, combining archival data analysis with behavioral experiments. The archival data included sales data from a supermarket chain and weather data from the National Weather Service. The experiments were designed to test the effect of extreme weather cues on consumption, the psychological mechanism behind this effect and moderators.

This research found that consumers’ anticipation of extreme weather events significantly increases their consumption of FMCGs. This research further discovered that these behaviors are driven by anticipated product scarcity and moderated by consumers’ altruisms and FMCG types.

Limitations of the research include the reliance on reported sales data and self-reported measures, which could introduce biases. The authors also primarily focused on extreme weather events, leaving other types of disasters unexplored. Furthermore, cultural differences in disaster response might influence results, yet the studies do not fully address these nuances. Despite these limitations, the findings provide critical insights for FMCG retailers and policymakers, suggesting strategies for managing demand surges during disasters. Moreover, understanding consumer behavior under impending disasters could inform intervention strategies, potentially mitigating panic buying and helping ensure equitable resource distribution. Last, these findings encourage further exploration of environmental influences on consumer behavior.

The findings have practical implications for products, brand managers and retailers in managing stock levels and product distribution during disasters. Furthermore, understanding the psychological mechanisms of these behaviors could inform policymakers’ designs of public interventions for equitable resource allocation during extreme weather events.

The research provides significant social implications by highlighting how extreme weather events impact FMCG consumption. This understanding can guide public policymakers in creating efficient disaster management plans. Specifically, anticipating surges in FMCG purchases can inform policies for maintaining price stability and preventing resource shortages, mitigating societal stress during crises. Moreover, these findings encourage public education around responsible purchasing during disasters, potentially reducing panic buying. By collaborating with FMCG manufacturers and retailers, governments can ensure a steady supply of essentials during extreme weather events. Thus, the research can play a crucial role in enhancing societal resilience in the face of impending disasters.

To the best of the authors’ knowledge, this is the first study to integrate the impact of extreme weather events on consumption behavior with the psychological theory of anticipated product scarcity. The unique focus on FMCGs offers a novel perspective on consumer behavior literature.

A leader who inspires, facilitates and leads people to outperform themselves and bring phenomenal changes on an individual and social canvas is recognized as a transformational leader (TL). TL focuses on innovative methods and processes to improve the efficiency of subordinates. Experts believe that transformational leadership management is more effective than pragmatic leadership. This study focuses on the traits of a TL. Mr. Dhirendra Kumar, Managing Director of Jharcraft, who set out on a mission to lead people to revive the lost art and craft in the state of Jharkhand, India. The case highlights how Kumar's leadership style aligns with the four components of transformational leadership suggested by Bass (1985), i.e. idealized influence, intellectual stimulation, inspirational motivation and individual considerations.

The study employs a qualitative approach to comprehend the theory of transformational leadership. First of all, an in-depth analysis of transformational leadership theory was conducted using secondary data. The findings of several researchers on the basis of their contribution to the development of transformational leadership theory were analyzed. Based on this, the Bass transformational theory framework was selected. Primary data were collected by conducting interviews with Mr. Dhirendra Kumar, Managing Director of Jharcraft.

Transformational leadership is a leadership style that can inspire positive changes in those who follow. TLs are generally energetic, enthusiastic and passionate. As per Bass's transformational leadership components, Kumar challenged the status quo and imbibed creativity and skill into local artisans. Artisans were imparted training by experts from the National Institute of Fashion and Technology and provided intellectual stimulation. Kumar offered support and encouragement to individual followers. In order to foster supportive relationships, Kumar articulated a clear vision to the followers. Kumar served as a role model for followers. Because followers trust and respect the leader, they emulate this individual and internalize the individual's ideals.

This study only considered the traits portrayed by Dhirendra Kumar during Kumar's tenure as the Managing Director of Warcraft, and the data were collected at one single point in time. Future research may consider Kumar's entire service journey and study factors that influenced his role as a TL.

Students will be able to learn and understand how a TL can bring positive change at the grassroots level.

This case focuses on how a TL's efforts led to the societal upliftment of poor people and made them capable.

Given the importance of transformational leadership in today's organizational context, this study builds a knowledge base to understand factors for transformational leadership and traits exhibited by TLs.