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Our result of this paper aims to indicate that the beta pricing formula could be applied in a long-term model setting as well.
Abstract
Purpose
Our result of this paper aims to indicate that the beta pricing formula could be applied in a long-term model setting as well.
Design/methodology/approach
In this paper, we show that the capital asset pricing model can be derived from a three-period general equilibrium model.
Findings
We show that our extended model yields a Pareto efficient outcome.
Practical implications
The capital asset pricing model (CAPM) model can be used for pricing long-lived assets.
Social implications
Long-term modelling and sustainability can be modelled in our setting.
Originality/value
Our results were only known for two periods. The extension to 3 periods opens up a large scope of applicational possibilities in asset pricing, behavioural analysis and long-term efficiency.
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Tamara Apostolou, Ioannis N. Lagoudis and Ioannis N. Theotokas
This paper aims to identify the interplay of standard Capesize optimal speeds for time charter equivalent (TCE) maximization in the Australia–China iron ore route and the optimal…
Abstract
Purpose
This paper aims to identify the interplay of standard Capesize optimal speeds for time charter equivalent (TCE) maximization in the Australia–China iron ore route and the optimal speeds as an operational tool for compliance with the International Maritime Organization (IMO) carbon intensity indicator (CII).
Design/methodology/approach
The TCE at different speeds have been calculated for four standard Capesize specifications: (1) standard Capesize with ecoelectronic engine; (2) standard Capesize with non-eco engine (3) standard Capesize vessel with an eco-electronic engine fitted with scrubber and (4) standard Capesize with non-eco engine and no scrubber fitted.
Findings
Calculations imply that in a highly inflationary bunker price context, the dollar per ton freight rates equilibrates at levels that may push optimal speeds below the speeds required for minimum CII compliance (C Rating) in the Australia–China trade. The highest deviation of optimal speeds from those required for minimum CII compliance is observed for non-eco standard Capesize vessels without scrubbers. Increased non-eco Capesize deployment would see optimal speeds structurally lower at levels that could offer CII ratings improvements.
Originality/value
While most of the studies have covered the use of speed as a tool to improve efficiency and emissions in the maritime sector, few have been identified in the literature to have examined the interplay between the commercial and operational performance in the dry bulk sector stemming from the freight market equilibrium. The originality of this paper lies in examining the above relation and the resulting optimal speed selection in the Capesize sector against mandatory environmental targets.
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Son Nghiem and Xuan-Binh (Benjamin) Vu
Basic income (BI) is predicted to be the major economic intervention in response to raising income inequality and accelerating technological progress. Financing is often the first…
Abstract
Purpose
Basic income (BI) is predicted to be the major economic intervention in response to raising income inequality and accelerating technological progress. Financing is often the first question that arises when discussing a BI. A thorough answer to this question will determine the sustainability of any BI program. However, BI experiments implemented worldwide have not answered this question. This paper explores two options for a BI program in Australia: (1) BI and (2) top-up basic income (TBI).
Design/methodology/approach
The authors employ “back-of-the-envelope” calculations with the latest publicly available data on income distribution, the poverty line and the share of income tax in the government revenue to estimate the costs of implementing BI in Australia.
Findings
Even without any change in the current tax regulations, the TBI option, which requires a contribution of 2–3% disposable income from net contributors, will guarantee that no Australian family lives under the current national poverty line. The BI for all options is not financially feasible under the current tax and transfer regulations because it requires an additional tax rate of at least 42% of disposable income from net contributors.
Practical implications
The results of this study can serve as inputs for the design and implementation of BI options in Australia and similar countries.
Originality/value
This is the first paper that examines the macroeconomic effects of BI options in Australia.
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Keywords
In this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This…
Abstract
Purpose
In this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.
Design/methodology/approach
We employ a Dynamic GTAP-VA Model to quantitatively evaluate the economic repercussions of the “Chip Act” on the Chinese electronic industries' GVC participation from 2023 to 2040.
Findings
The findings depict a discernible contraction in China’s electronic sector by 2040, marked by a −2.95% change in output, a −3.50% alteration in exports and a 0.45% increment in imports. Concurrently, the U.S., EU and certain Asian economies exhibit expansions within the electronic sector, indicating a GVC realignment. The “Chip Act” implementation precipitates a significant divergence in GVC participation across different countries and industries, notably impacting the electronics sector.
Research limitations/implications
Through a meticulous temporal analysis, this manuscript unveils the nuanced economic shifts within the GVC, substantially bridging the empirical void in existing literature. This narrative accentuates the profound implications of policy regulations on global trade dynamics, contributing to the discourse on international economic policy and industry evolution.
Practical implications
We evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.
Social implications
The interaction between policy regulations and global value chain (GVC) dynamics is pivotal in understanding the contemporary global trade framework, especially within technology-driven sectors. The US “Chips Act” represents a significant regulatory milestone with potential ramifications on the Chinese electronic industries' engagement in the GVC.
Originality/value
The significance of this paper is that it quantifies for the first time the impact of the US Chip Act on the GVC participation index of East Asian countries in the context of US-China decoupling. With careful consideration of strategic aspects, this paper substantially fills the empirical gap in the existing literature by presenting subtle economic changes within GVCs, highlighting the profound implications of policy regulation on global trade dynamics.
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Antonio Cutanda and Juan Alberto Sanchis Llopis
The purpose of this study is to estimate the housing wealth effect on non-durable consumption using data from the Spanish Survey of Household Finances (Encuesta Financiera de las…
Abstract
Purpose
The purpose of this study is to estimate the housing wealth effect on non-durable consumption using data from the Spanish Survey of Household Finances (Encuesta Financiera de las Familias, SHF) for the period 2002–2017.
Design/methodology/approach
The authors aim at identifying the effect of anticipated and unanticipated housing wealth changes on consumption with the sample of homeowners, following Paiella and Pistaferri (2017).
Findings
Results of this study lead us to conclude that there exists a strong housing wealth effect on consumption for the Spanish households.
Originality/value
The authors provide evidence against the permanent income model. They also analyse how the results change with income expectations, age and the household indebtedness rate. Finally, they detect a strong excess sensitivity to income.
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Keywords
Sarah Schönherr, Robert Eller, Andreas Kallmuenzer and Mike Peters
Organisational learning drives tourism organisations towards more sustainable tourism. Digital transformation also provides opportunities for sustainable tourism development. This…
Abstract
Purpose
Organisational learning drives tourism organisations towards more sustainable tourism. Digital transformation also provides opportunities for sustainable tourism development. This study aims to combine these perspectives and explore how digital transformation enables organisational learning to contribute to sustainable tourism, following organisational learning theory (OLT).
Design/methodology/approach
Based on a critical realist paradigm, this study focuses on developing an in-depth understanding of organisational learning in tourism organisations. Thirty qualitative interviews with tourism organisations participating in an executive development programme (EDP) show how tourism organisations create, retain and transfer knowledge.
Findings
This study demonstrates that the EDP initiates knowledge creation through content transmission and exchange, triggers knowledge retention through utilisation of digital technologies and reinforces digitalisation through data value creation. Furthermore, this study enables knowledge transformation as implementation, which contributes to the three pillars of sustainable tourism and facilitates the development of networks encouraging sustainable tourism.
Originality/value
This study identifies approaches that enable economic, social and environmentally sustainable tourism development by facilitating collaborations via digital transformation, digital technologies that guide guest streams, online mobility offers and online environmental awareness campaigns that reduce environmental impacts. Thus, this study strengthens OLT and has implications for organisational learning and tourism policymakers.
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David Leiño Calleja, Jeroen Schepers and Edwin J. Nijssen
The impact of frontline robots (FLRs) on customer orientation perceptions remains unclear. This is remarkable because customers may associate FLRs with standardization and…
Abstract
Purpose
The impact of frontline robots (FLRs) on customer orientation perceptions remains unclear. This is remarkable because customers may associate FLRs with standardization and cost-cutting, such that they may not fit firms that aim to be customer oriented.
Design/methodology/approach
In four experiments, data are collected from customers interacting with frontline employees (FLEs) and FLRs in different settings.
Findings
FLEs are perceived as more customer-oriented than FLRs due to higher competence and warmth evaluations. A relational interaction style attenuates the difference in perceived competence between FLRs and FLEs. These agents are also perceived as more similar in competence and warmth when FLRs participate in the customer journey's information and negotiation stages. Switching from FLE to FLR in the journey harms FLR evaluations.
Practical implications
The authors recommend firms to place FLRs only in the negotiation stage or in both the information and negotiation stages of the customer journey. Still then customers should not transition from employees to robots (vice versa does no harm). Firms should ensure that FLRs utilize a relational style when interacting with customers for optimal effects.
Originality/value
The authors bridge the FLR and sales/marketing literature by drawing on social cognition theory. The authors also identify the product categories for which customers are willing to negotiate with an FLR. Broadly speaking, this study’s findings underline that customers perceive robots as having agency (i.e. the mental capacity for acting with intentionality) and, just as humans, can be customer-oriented.
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Johann Valentowitsch, Michael Kindig and Wolfgang Burr
The effects of board composition on performance have long been discussed in management research using fractionalization measures. In this study, we propose an alternative…
Abstract
Purpose
The effects of board composition on performance have long been discussed in management research using fractionalization measures. In this study, we propose an alternative measurement approach based on board polarization.
Design/methodology/approach
Using an exploratory analysis and applying the polarization measure to German Deutscher Aktienindex (DAX)-, Midcap-DAX (MDAX)- and Small Cap-Index (SDAX)-listed companies, this paper applies the polarization index to examine the relationship between board diversity and performance.
Findings
The results show that the polarization concept is well suited to measure principal-agent problems between the members of the management and supervisory boards. We reveal that board polarization is negatively associated with firm performance, as measured by return on investment (ROI).
Originality/value
This exploratory study shows that the measurement of board polarization can be linked to performance differences between companies, which offers promising starting points for further research.
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The purpose of this paper is to provide a gender-sensitive analysis of economic agency in Islamic economic philosophy.
Abstract
Purpose
The purpose of this paper is to provide a gender-sensitive analysis of economic agency in Islamic economic philosophy.
Design/methodology/approach
A critical review of classical ethics literature and the concept of khilafah is undertaken and discussed in conjunction with the current understanding of homo Islamicus.
Findings
Building on the principles of khilafah, the concept of homo Islamicus is a pious stand-in for the flawed homo economicus. Among its flaws is the complete absence of a discussion of women as economic agents. To remedy this the discipline must acknowledge explicitly the denial of women and gender from the discussion of moral agency and include gender as a category of analysis for economic agency. This is only possible by: (1) introducing a non-patriarchal reading of khilafah as the model of agency and (2) by operationalising taqwa as the cardinal virtue of the economic agent instead of neoliberal rationality.
Research limitations/implications
If Islamic economic philosophy is to contend as an alternative mode of economics, it must consider gender and class dimensions in its micro-foundation discussion, economic agency is one of them.
Originality/value
This study reveals the patriarchal readings that are part of the foundation of the concept of the economic agent in Islamic economics, problematising it and providing a gender-sensitive concept of economic agency.
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Christopher Amaral, Ceren Kolsarici and Mikhail Nediak
The purpose of this study is to understand the profit implications of analytics-driven centralized discriminatory pricing at the headquarter level compared with sales force price…
Abstract
Purpose
The purpose of this study is to understand the profit implications of analytics-driven centralized discriminatory pricing at the headquarter level compared with sales force price delegation in the purchase of an aftermarket good through an indirect retail channel with symmetric information.
Design/methodology/approach
Using individual-level loan application and approval data from a North American financial institution and segment-level customer risk as the price discrimination criterion for the firm, the authors develop a three-stage model that accounts for the salesperson’s price decision within the limits of the latitude provided by the firm; the firm’s decision to approve or not approve a sales application; and the customer’s decision to accept or reject a sales offer conditional on the firm’s approval. Next, the authors compare the profitability of this sales force price delegation model to that of a segment-level centralized pricing model where agent incentives and consumer prices are simultaneously optimized using a quasi-Newton nonlinear optimization algorithm (i.e. Broyden–Fletcher–Goldfarb–Shanno algorithm).
Findings
The results suggest that implementation of analytics-driven centralized discriminatory pricing and optimal sales force incentives leads to double-digit lifts in firm profits. Moreover, the authors find that the high-risk customer segment is less price-sensitive and firms, upon leveraging this segment’s willingness to pay, not only improve their bottom-line but also allow these marginalized customers with traditionally low approval rates access to loans. This points out the important customer welfare implications of the findings.
Originality/value
Substantively, to the best of the authors’ knowledge, this paper is the first to empirically investigate the profitability of analytics-driven segment-level (i.e. discriminatory) centralized pricing compared with sales force price delegation in indirect retail channels (i.e. where agents are external to the firm and have access to competitor products), taking into account the decisions of the three key stakeholders of the process, namely, the consumer, the salesperson and the firm and simultaneously optimizing sales commission and centralized consumer price.
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