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“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.

Although stock price co-movement has been examined extensively, its causes are not well understood. Using a decomposition method, we extract three information components from the turnover rate: market information, firm-specific information, and investors' opinion divergence. We find that market information strengthens stock price co-movement, whereas firm-specific information weakens it. Moreover, our analysis shows that divergence of investors' opinion increases stock price variations but weakens price co-movement.

THE primary duties of an aircraft design team are to design an aircraft capable of meeting a certain specification of performance and manoeuvrability with suitable flying qualities, and to ensure that it will be strong enough to withstand any aerodynamic loads it may suffer in flight. It will be found that the aircraft when built is not a rigid structure, but this in itself is not important. We are all familiar with the flexing of an aircraft's wings when struck by a sharp gust of wind in flight, but as long as the wings are strong enough no harm is done. On the contrary, in a passenger aircraft the flexibility of the wings in bending will have a favourable effect, as it will cushion the passengers to some extent from the suddenness of the gust. Flexibility of the structure, however, is not always beneficial and it often introduces new difficulties in the designer's problems. These difficulties arise when the deformation of the aircraft structure introduces additional aerodynamic forces of appreciable magnitude. The additional forces will themselves cause deformation of the structure which may introduce still further aerodynamic forces, and so on. It is interactions of this type between elastic and aerodynamic forces which lead to the oscillatory phenomenon of flutter, and to the non‐oscillatory phenomena of divergence and reversal of control. The study of these three aero‐elastic problems becomes more important as aircraft speeds increase, because increase of design speeds leads to more slender aircraft with thinner wings, and therefore to relatively greater flexibility of the structure. The dangers, in fact, are such that the designers of a modern high‐performance aircraft have to spend considerable effort on the prediction of aero‐elastic effects in order that suitable safeguards can be included in the design. By far the greatest part of this effort is spent on flutter, which will be discussed in Parts II, III and IV of this series, but any of the three problems may force the designers to increase the structural stiffness of parts of the aircraft. The wing skin thickness on a modern aircraft, for example, is nearly always designed by consideration either of aileron reversal or wing flutter. Divergence is usually less important but as it is the simplest of the three phenomena to treat analytically, we shall study it first.

Process innovation is a key determinant of performance. While extant literature paints a clear picture of the drivers of process innovation, the effect of process innovation on performance has received little attention. This paper aims to examine how the divergence of process innovation impacts performance. Divergence concerns the extent to which the observed level of process innovation diverges from the expected level of process innovation. Positive divergence occurs when the observed level of process innovation is higher than expected while for negative divergence the opposite occurs. In turn, the authors consider how divergence acts as a driver of performance.

The authors use survey and archival data from 5,594 firms across 15 countries. The authors analyze the data using an advanced two-step random-effects estimator that accounts for the multi-level data used.

The authors find negative divergence to reduce performance under high competitive intensity, whereas positive divergence is detrimental under high environmental uncertainty.

The authors present new and unique insights into the relationship between divergence and performance. The authors argue that each firm has an “ideal” level of process innovation, based on their resources and business environment, relative to which performance diminishes. Specifically, the authors argue that divergence from the firm’s expected level of process innovation is associated with the reduced performance during high environmental uncertainty or high competitive intensity. Furthermore, the authors argue that there can be “too much” process innovation. This nuance of the majority of prior empirical studies in this area suggests that more innovation is always better for firms. The more nuanced approach reveals that the process innovation-performance debate should not focus on more or less innovation per se, but on how innovation is constructed and supported.

Some argue the existence of an academia-practitioner gap, with both living in different worlds (Reibstein et al., 2009). The findings suggest that theory is not only useful to practitioners but also has a crucial and central role regarding decisions relating to efficiency and effectiveness of scarce resources, in the field of process innovation. More specifically, the authors demonstrate that the prior study on process innovation seems to be useful in that relative to a theory-predicted level, divergence diminishes performance in the global sample of companies across a wide range of industries. In addition, the authors suggest that firms should not strive for more innovation per se. The findings suggest that positive divergence or too much innovation is detrimental for performance under environmental uncertainty, while negative divergence or too little innovation is harmful to performance under competitive uncertainty. Moreover, the divergence approach is also useful for comparing performance to that of other firms, typically referred to as benchmarking.

This paper is useful and important for managers and theory development as it provides insight into situations where a firm may have “too little” or “too much” process innovation. Thus, divergence advances understanding as, in contrast with the previous study, the authors do not suggest that more innovation is always better.

The purpose of this paper is to empirically test how ultimate controlling shareholders' ownership‐control rights divergence and government intervention affect choice of capital structure (CS), and how the relationship between controlling shareholders' ownership‐control rights divergence and choice of CS is affected by government intervention.

Integrating the institutional background of China, the paper adopts balanced panel data containing related continuously obtainable information of 1,076 non‐financial companies listed in Shanghai and Shenzhen from 2004 to 2008 (a total of 5,380 observed values), and applies a series of generalised least squares to empirically test how ultimate controlling shareholders' ownership‐control rights divergence and government intervention affect choice of CS, and how the relationship between controlling shareholders' ownership‐control rights divergence and choice of CS is affected by government intervention.

The empirical evidence provided by this paper indicates that: controlling shareholders' ownership‐control rights divergence is negatively correlated with leverage; government intervention is positively correlated with leverage; and government intervention will weaken the negative relationship between controlling shareholders' ownership‐control rights divergence and leverage, and make debt capital suppliers (especially financial institutions like banks, etc.) provide loans, especially long‐term ones, to companies with high ownership‐control rights divergence.

So far, it is still little‐known how ownership‐control rights divergence affects choice of CS and how government intervention affects the relationship between ownership and control rights divergence and choices of CS. This paper is the first to test how ultimate controlling shareholders' ownership‐control rights divergence and government intervention affect choice of CS, and how the relationship between controlling shareholders' ownership‐control rights divergence and choice of CS is affected by government intervention based on the institutional background of China.

Web users' clustering is an important mining task since it contributes in identifying usage patterns, a beneficial task for a wide range of applications that rely on the web. The purpose of this paper is to examine the usage of Kullback‐Leibler (KL) divergence, an information theoretic distance, as an alternative option for measuring distances in web users clustering.

KL‐divergence is compared with other well‐known distance measures and clustering results are evaluated using a criterion function, validity indices, and graphical representations. Furthermore, the impact of noise (i.e. occasional or mistaken page visits) is evaluated, since it is imperative to assess whether a clustering process exhibits tolerance in noisy environments such as the web.

The proposed KL clustering approach is of similar performance when compared with other distance measures under both synthetic and real data workloads. Moreover, imposing extra noise on real data, the approach shows minimum deterioration among most of the other conventional distance measures.

The experimental results show that a probabilistic measure such as KL‐divergence has proven to be quite efficient in noisy environments and thus constitute a good alternative, the web users clustering problem.

This work is inspired by the usage of divergence in clustering of biological data and it is introduced by the authors in the area of web clustering. According to the experimental results presented in this paper, KL‐divergence can be considered as a good alternative for measuring distances in noisy environments such as the web.

The purpose of this paper is to consider divergence of composite plate wings as well as slender wings with thin-walled cross-section of small-size airplanes. The main attention is paid to establishing of closed-form mathematical solutions for models of wings with coupling effects. Simplified solutions for calculating the divergence speed of wings with different geometry are established.

The wings are modeled as anisotropic plate elements and thin-walled beams with closed cross-section. Two-dimensional plate-like models are applied to analysis and design problems for wings of large aspect ratio.

At first, the equations of elastic deformation for anisotropic slender, plate-like wing with the large aspect ratio are studied. The principal consideration is delivered to the coupled torsion-bending effects. The influence of anisotropic tailoring on the critical divergence speed of the wing is examined in closed form. At second, the method is extended to study the behavior of the large aspect ratio, anisotropic wing with box-like wings. The static equations of the wing with box-like profile are derived using the theory of anisotropic thin-walled beams with closed cross-section. The solutions for forward-swept wing with box-like profiles are given in analytical formulas. The formulas for critical divergence speed demonstrate the dependency upon cross-sectional shape characteristics and anisotropic properties of the wing.

The following simplifications are used: the simplified aerodynamic theory for the wings of large aspect ratio was applied; the static aeroelastic instability is considered (divergence); according to standard component methodology, only the component of wing was modeled, but not the whole aircraft; the simplified theories (plate-lime model for flat section or thin-walled beam of closed-section) were applied; and a single parameter that defines the rotation of a stack of single layers over the face of the wing.

The simple, closed-form formulas for an estimation of critical static divergence are derived. The formulas are intended for use in designing of sport aircraft, gliders and small unmanned aircraft (drones). No complex analysis of airflow and advanced structural and aerodynamic models is necessary. The expression for chord length over the span of the wing allows for accounting a board class of wing shapes.

The derived theory facilitates the use of composite materials for popular small-size aircraft, and particularly, for drones and gliders.

The closed-form solutions for thin-walled beams in steady gas flow are delivered in closed form. The explicit formulas for slender wings with variable chord and stiffness along the wing span are derived.

This study aims to investigate the moderating role of investor demand on the relationship between the investors' divergence of beliefs and the first-day initial public offering (IPO) return.

The study sample covers the period from 2010 to 2019 and consists of 117 IPOs that are priced using the fixed price and listed on the Malaysian stock exchange (Bursa Malaysia). This study employed both the ordinary least square (OLS) and the quantile regression (QR) methods.

Investor demand, proxied by the over-subscription ratio (OSR), plays a moderating role in increasing the effect of investors' divergence of beliefs on initial return, and the moderation effects vary across the quantile of initial return. Pure moderation effects are observed at the bottom and top quantiles, suggesting that investor demand is necessary for divergence of beliefs to influence IPO initial return. However, at the middle quantile of initial return, investor demand is a quasi-moderator. That is, the OSR not only moderates the relationship between the divergence of beliefs and initial return but also has a positive effect on the initial return.

Investors' excessive demand for an IPO issue exacerbates the IPO under-pricing issue induced by a divergence of beliefs amongst investors, thus rendering greater equity market inefficiency.

To the authors' knowledge, this study is amongst the first to empirically investigate the moderating role of investor demand on the investors' divergence of beliefs and IPO initial return relationship.

Like the cross-country convergence or divergence analysis in incomes to address the global phenomenon, the same analysis is also required to be done in the case of a group of states within a national territory. Further, it is also required to see whether convergence or divergence in incomes of the states is attributable to the convergence or divergence in their allocations of bank credits. Thus, this chapter aims at examining whether the selected major states in India are converging or diverging in the allocations of bank credit, and if so, what will be the magnitudes of decreases or increases in the level of disparities and inequalities in credit allocations. This study concludes that there is a clear diverging tendency of credit allocations of the states of India during the post-reform period so far as the absolute convergence hypothesis of the neoclassical theory is concerned. Further, in terms of the framework of σ convergence, the study observes that all phases of the Indian economy have produced converging paths of the inter-state credit allocations, and the path becomes diverging during the post-reform phase. Based on the quantifications of the magnitudes of disparities and inequalities in terms of CV, C4 concentration, HHI and Gini values, this study thus reveals that there are significant increases in the levels of disparities and inequalities in the allocations of credit to the states from the pre-reform to the post-reform phases. Therefore, the persistence of divergence in income or rising income inequality during the phase of the major reform program in India may be due to the persistence of divergence and rising inequality in the allocation of bank credit.

Since the opening of China (aka, reform and opening-up), a great number of rural residents have migrated to large cities in the past 40 years. Such a one-way population inflow to urban areas introduces nontrivial social conflicts between urban natives and migrant workers. This study aims to investigate the most discussed topics about migrant workers on Sina Weibo along with the corresponding sentiment divergence.

An exploratory-descriptive-explanatory research methodology is employed. The study explores the main topics on migrant workers discussed in social media via manual annotation. Subsequently, guided LDA, a semi-supervised topic modeling approach, is applied to describe the overall topical landscape. Finally, the authors verify their theoretical predictions with respect to the sentiment divergence pattern for each topic, using regression analysis.

The study identifies three most discussed topics on migrant workers, namely wage default, employment support and urban/rural development. The regression analysis reveals different diffusion patterns contingent on the nature of each topic. In particular, this study finds a positive association between urban/rural development and the sentiment divergence, while wage default exhibits an opposite relationship with sentiment divergence.

The authors combine unique characteristics of social media with well-established theories of social identity and framing, which are applied more to off-line contexts, to study a unique phenomenon of migrant workers in China. From a practical perspective, the results provide implications for the governance of urbanization-related social conflicts.