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Article
Publication date: 21 August 2019

Tommy Gärling, Dawei Fang and Martin Holmen

The purpose of this paper is to review behavioral explanations of the empirical observation that investment managers in mutual fund companies increase their risk taking…

Abstract

Purpose

The purpose of this paper is to review behavioral explanations of the empirical observation that investment managers in mutual fund companies increase their risk taking when offered incentives based on how their performance is ranked compared to peers.

Design/methodology/approach

A conceptual model is proposed of how research on social comparison, competition and financial risk taking may explain increased investor risk taking induced by rank-based incentives. Research findings in each of the strands of research are reviewed.

Findings

A proposed main explanation is that an above-average bias in comparing oneself with competitors results in overconfidence that increases risk taking. A complementary proposed explanation is that an anticipated loss when lagging behind increases risk taking, and another proposed complementary explanation the belief that risk taking is a winning strategy.

Originality/value

The results provide a broad framework for directions of research on social comparison processes in the mutual fund industry addressing the difficulties in implementing performance evaluations.

Details

Review of Behavioral Finance, vol. 12 no. 2
Type: Research Article
ISSN: 1940-5979

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Article
Publication date: 17 April 2020

Tommy Gärling, Dawei Fang, Martin Holmen and Patrik Michaelsen

The purpose of this paper is to investigate how social comparison and motivation to compete account for elevated risk-taking in fund management corroborated by asset…

Abstract

Purpose

The purpose of this paper is to investigate how social comparison and motivation to compete account for elevated risk-taking in fund management corroborated by asset market experiments when performance depends on rank-based incentives.

Design/methodology/approach

In two laboratory experiments, university students (n1 = 240/n2 = 120) make choices between risky and certain outcomes of hypothetical sums of money. Both experiments investigate in which direction risky choices in an individual condition (individual risk preference) are shifted when participants compare their performance to another participant's performance (social comparison), being instructed or not to outperform the other (incentive to compete).

Findings

In the absence of incentives to compete, participants tend to minimize the differences between expected outcomes to themselves and to the other, but when provided with incentives to compete, they tend to maximize these differences. An independent additional increase in risk-taking is observed when participants are provided with incentives to compete.

Originality/value

Original findings include that social comparison does not evoke motivation to compete unless incentives are offered and that increases in risk-taking depend both on what the other chooses and the incentives.

Details

Review of Behavioral Finance, vol. 13 no. 2
Type: Research Article
ISSN: 1940-5979

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Article
Publication date: 2 October 2019

Jia-lu Shi and Wen-hsiang Lai

Over recent decades, talent agglomeration has emerged as a critical topic for scholars, businesses and government officers. Innovative ability is a core competition for…

Abstract

Purpose

Over recent decades, talent agglomeration has emerged as a critical topic for scholars, businesses and government officers. Innovative ability is a core competition for high-tech talents. In China, low innovation is the bottleneck, as the high-tech industry usually cannot provide sufficient support for the continuous needs of innovative talents. To enhance the continuous support of talents, it is important to obtain the mechanisms of talent evaluation and flow in high-tech industry. Exploring the incentive factors influencing the scientific and technological personnel, adjust the layout of talents and promote the rational agglomeration. It’s significant to realize the regional economic development.

Design/methodology/approach

This study proposes an assessment model using the multi-criteria decision-making method of analytical hierarchy process (AHP) to determine the weights of incentive factors and a nonlinear programing model, from micro, meso and macro perspectives of individual, organizational and social incentives by adopting Maslow’s hierarchy of needs theory, Kurt Lewin’s field theory and Lee’s push-pull theory. After the literature review and interviews with 14 experts, this study produced a research framework and a pairwise comparison questionnaire. In addition, the relative quantitative weights of 3 main categories and 15 indicators are identified and ranked based on the AHP method.

Findings

The results demonstrate that the most important dimension is the individual, and the top three highest weighted factors are job satisfaction, sense of working accomplishment and interpersonal relationships. The discussion in this study showed that the proposed model is rational and acceptable to motivate high-tech innovation talent (HTIT) agglomeration for high-tech enterprises, universities, government and start-ups.

Research limitations/implications

The pairwise comparison using the AHP method is limited to expert opinions, which are considered comparatively subjective. The number of incentive factors should be increased, as some indicators may have been omitted from the AHP model.

Practical implications

According to the results, some suggestions can be recommended to corporate executives, HR managers and government officers to attract and retain high-tech talents and further to improve industrial clusters and economic development.

Originality/value

This paper derives a relative ranking of importance based on the opinions of experienced HR specialists, high-tech talent, scholars and government official, and assesses the consistency of results. The ordering represents the importance of indicators and sub-indicators of two levels from respondents’ perspectives in an industry cluster background. The study, focusing on the high-tech industry in China (which is a developing country), offers a unique view, as earlier studies mainly collect data from developed countries.

Details

International Journal of Innovation Science, vol. 11 no. 4
Type: Research Article
ISSN: 1757-2223

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Article
Publication date: 6 August 2018

Steffen Müller and Renate Neubaeumer

The purpose of this paper is to analyze how long-run unemployment of former apprentices depends on the size of their training firm and their ability.

Abstract

Purpose

The purpose of this paper is to analyze how long-run unemployment of former apprentices depends on the size of their training firm and their ability.

Design/methodology/approach

The authors use a large administrative data set that follows graduated apprentices during their working life. They show that training in large and medium-sized firms is associated with considerably less unemployment. This, however, may simply be the result of sorting processes, i.e. larger training firms with higher wage levels attract and choose the most able young workers. Therefore, the authors use a proxy for ability to estimate and control for the impact of ability on long-run unemployment. They assume that rank-order tournaments for the most attractive training positions take place and take into account an institutional peculiarity of the German training system, the empirically observable regional immobility of apprentices. Accordingly, they use a region-specific ranking based on training plants’ size or median wages, respectively, to proxy for apprentices’ ability.

Findings

The negative association between training plant size and long-run unemployment is muted but still statistically well determined even after controlling for the rank of an individual’s training firm in the local plant size distribution or the local wage distribution, respectively. Thus, the rank itself is a predictor for long-run unemployment of apprentices. The fact that the position in the local size distribution matters conditional on plant size shows that there is a local competition for training places.

Practical implications

Lacking mobility may increases aggregate unemployment, as mobility reduces the risk of unemployment.

Social implications

The results imply that supporting regional mobility of young workers, e.g., by informing them better about existing mobility subsidies and dormitories for apprentices and by creating additional mobility incentives is warranted.

Originality/value

This is the first study to investigate long-run unemployment of former apprentices. Furthermore, the authors develop new variables to proxy for ability.

Details

International Journal of Manpower, vol. 39 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

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Article
Publication date: 1 July 2000

Michael Melton and Thomas S. Zorn

Tournament theory provides important insights into organizational reward systems. It examines the incentive properties of reward systems based on rank‐order rather than…

Abstract

Tournament theory provides important insights into organizational reward systems. It examines the incentive properties of reward systems based on rank‐order rather than absolute individual performance. Tournament theory may explain the pattern of managerial pay. It may also explain risk‐taking behavior by mutual fund managers. We use data from the PGA tour to examine the pattern of risk‐taking by professional golfers in an explicit tournament. The PGA tour provides a natural laboratory where such behavior can be studied. Our evidence shows that behavior by players in golf tournaments is consistent with the predictions of tournament theory.

Details

Managerial Finance, vol. 26 no. 7
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 14 July 2020

Mohammad Mahbubi Ali, Abrista Devi, Hafas Furqani and Hamzah Hamzah

This study aims to uncover the determinants of Islamic financial inclusion in Indonesia.

Abstract

Purpose

This study aims to uncover the determinants of Islamic financial inclusion in Indonesia.

Design/methodology/approach

This study uses the analytic network process (ANP) to gather expert opinions and responses from academics, regulators and practitioners.

Findings

The ANP analysis discovered that the level of Islamic financial inclusion in Indonesia is influenced by two main drivers: the supply and the demand. The demand factors for Islamic financial inclusion, ranked based on their level of significance, are as follows: financial literacy (0.27), religious commitment (0.22), socioeconomic factor (0.19) and social influence (0.17), respectively. From the supply side, primary catalysts for Islamic financial inclusion based on their level of importance are human capital (0.32), product and services (0.24), infrastructure (0.18) and policies and regulation (0.17), respectively.

Research limitations/implications

The present study does not include the Islamic insurance sector in its determinant framework of Islamic financial inclusion in Indonesia.

Practical implications

This study serves as a reference for regulators in formulating appropriate policy strategies to strengthen the Islamic financial inclusion in Indonesia.

Originality/value

This study is a pioneer attempt to identify distinctive factors that influence the level of Islamic financial inclusion in Indonesia by analyzing expert opinions from diverse groups of Islamic finance stakeholders.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 13 no. 4
Type: Research Article
ISSN: 1753-8394

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Article
Publication date: 6 June 2016

Abel Ribeiro de Jesus, Jiju Antony, Herman Augusto Lepikson and Adriano L. A. Peixoto

The purpose of this paper is to identify critical success factors (CSFs) that are regarded as the most important in Six Sigma programs in Brazil and to compare these…

Abstract

Purpose

The purpose of this paper is to identify critical success factors (CSFs) that are regarded as the most important in Six Sigma programs in Brazil and to compare these rankings with those in international literature.

Design/methodology/approach

A sample of industrial companies was selected to complete a survey. In total, 104 questionnaires were obtained. The results were compared with a literature review consisting of 26 papers from 13 countries. In total, 70 CSFs were found in the papers, but 19 CSFs were analyzed and reduced to ten. A multivariate factor analysis further reduced this number to two underlying constructs.

Findings

The authors identified a CSFs common denominator/ranking based on the sample of international articles. The authors found that there are four CSFs that are more prevalent in Brazil and in the international papers studied and that there are no differences between the importance of CSFs in terms of hierarchical levels. Three gaps, five levers and two CSFs constructs were identified.

Social implications

This study may initiate cooperation between the studied companies and academia, thus possibly increasing these organization’ knowledge regarding Six Sigma.

Originality/value

The originality of this study is that the survey was conducted with companies in Brazil, a country where little information exists on Six Sigma programs. The authors also contributed a literature review on CSFs, a comparison based on most of the consulted papers and the use of a robust methodological strategy that was made possible by the sample size.

Details

International Journal of Quality & Reliability Management, vol. 33 no. 6
Type: Research Article
ISSN: 0265-671X

Keywords

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Article
Publication date: 20 August 2018

Corren G. McCoy, Michael L. Nelson and Michele C. Weigle

The purpose of this study is to present an alternative to university ranking lists published in U.S. News & World Report, Times Higher Education, Academic Ranking of World

Abstract

Purpose

The purpose of this study is to present an alternative to university ranking lists published in U.S. News & World Report, Times Higher Education, Academic Ranking of World Universities and Money Magazine. A strategy is proposed to mine a collection of university data obtained from Twitter and publicly available online academic sources to compute social media metrics that approximate typical academic rankings of US universities.

Design/methodology/approach

The Twitter application programming interface (API) is used to rank 264 universities using two easily collected measurements. The University Twitter Engagement (UTE) score is the total number of primary and secondary followers affiliated with the university. The authors mine other public data sources related to endowment funds, athletic expenditures and student enrollment to compute a ranking based on the endowment, expenditures and enrollment (EEE) score.

Findings

In rank-to-rank comparisons, the authors observed a significant, positive rank correlation (τ = 0.6018) between UTE and an aggregate reputation ranking, which indicates UTE could be a viable proxy for ranking atypical institutions normally excluded from traditional lists.

Originality/value

The UTE and EEE metrics offer distinct advantages because they can be calculated on-demand rather than relying on an annual publication and they promote diversity in the ranking lists, as any university with a Twitter account can be ranked by UTE and any university with online information about enrollment, expenditures and endowment can be given an EEE rank. The authors also propose a unique approach for discovering official university accounts by mining and correlating the profile information of Twitter friends.

Details

Information Discovery and Delivery, vol. 46 no. 3
Type: Research Article
ISSN: 2398-6247

Keywords

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Article
Publication date: 8 February 2016

A. Azadeh, S. Motevali Haghighi, M. Hosseinabadi Farahani and R. Yazdanparast

Concern for health, safety and environment (HSE) is increasing in many developing countries, especially in energy industries. Improving power plants efficiencies in terms…

Abstract

Purpose

Concern for health, safety and environment (HSE) is increasing in many developing countries, especially in energy industries. Improving power plants efficiencies in terms of HSE issues requires considering these issues in performance assessment of power generation units. This study aims to discuss the use of data envelopment analysis methodology for the performance assessment of electrical power plants in Iran by considering HSE and conventional indicators.

Design/methodology/approach

Installed capacity, fuel consumption, labor cost, internal power, forced outage hours, operating hours and total power generation along with HSE indices are taken into consideration for determining the efficiency of 20 electric power plants or decision-making units (DMUs). Moreover, DMUs are ranked based on their relative efficiency scores.

Findings

Results show that HSE factors are significant in performance assessment of the power plants studied in this research, and among HSE factors, health has the most powerful impact on the efficiency of the power plants.

Originality/value

The approach of this study could be used for continuous improvement of combined HSE and conventional factors. It would also help managers to have better comprehension of key shaping factors in terms of HSE.

Details

World Journal of Engineering, vol. 13 no. 1
Type: Research Article
ISSN: 1708-5284

Keywords

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Article
Publication date: 10 October 2018

Thomas Laudal

According to the paper “Creating shared value” (CSV) (Porter and Kramer, 2011), three specific strategies will expand the firm’s pool of available economic and social…

Abstract

Purpose

According to the paper “Creating shared value” (CSV) (Porter and Kramer, 2011), three specific strategies will expand the firm’s pool of available economic and social values and improve businesses’ competitive position over time. However, firms’ performances are not systematically compared to validate this claim. The purpose of this paper is to suggest a path towards delineating CSV to validate the claim and to contribute to the foundation of an industry-specific ranking based on CSV.

Design/methodology/approach

This paper attempts to delineate CSV based on relevant literature, including the critique of CSV, to measure CSV empirically. The suggested indicators of CSV are based on an interpretation of Porter and Kramer (2011) referring to a market-centric approach to corporate social responsibility (CSR).

Findings

None of the CSV strategies proposed by Porter and Kramer (2011) are new to the academic literature, though several scholars argue that these strategies, taken together, characterize prosperous multinational corporations (MNCs).

Research limitations/implications

The relevance and usefulness of the indicators presented here will vary among industries.

Practical implications

CSV indicators may be the source for an industry-specific ranking of MNCs. An index based on these indicators may reveal systematic differences between industries.

Social implications

A CSV index would include synergies between commercial and CSR-related performances of firms. If a CSV index attracts international attention, the rank of an MNC would indicate to what degree MNCs succeed in integrating their commercial and CSR-related strategies and influence the valuation of firms.

Originality/value

A CSV index based on these indicators enables to rank MNCs according to both commercial, social and environmental criteria, and thereby transcend the divide between CSR indexes and commercial indexes.

Details

Social Responsibility Journal, vol. 14 no. 4
Type: Research Article
ISSN: 1747-1117

Keywords

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