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1 – 10 of 12This paper examines which basis functions are efficient to employ a combined method of Hull and White (1990) with the Monte Carlo simulation when we price a callable range note or…
Abstract
This paper examines which basis functions are efficient to employ a combined method of Hull and White (1990) with the Monte Carlo simulation when we price a callable range note or a callable bond. We use the Huge and Rom-Poulsen (2007) method which has modified the least squared Monte Carlo simulation proposed by Longstaff and Schwartz (2001) to reduce the estimation errors of the continuation value or the underlying assets. To use Monte carlo Simulation for pricing the early exercise premium, it is essential to accurately estimate the continuation value, because the investors will choose the higher value between the exercise and the continuation value at the possible early exercise dates. The main purpose of this paper is to analyze the estimation errors originating from the choice of the basis functions for the underlying asset and the continuation value estimation.
We choose the callable bond and the callable range accrual note to show which basis functions are reliable to reduce the estimation errors. For this purpose, we replicate the callable range accrual note with a portfolio of a fixed rate bond and a delayed digital option. We use several basis functions such as a constant, the instantaneous interest rates, and the range in order to see which basis function is efficient for our purpose. We examine several combinations of the basis functions depending on which basis functions will be used for the underlying asset or the continuation value estimation. We show that the range which is an important determinant of the callable range accrual note is an effective basis function to accurately determine the underlying asset and the continuation value for the pricing of the callable range accrual note.
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The major economies of East Asia, namely Japan and the Four Asian Tigers, have always prioritized the WTO-led multilateral trade liberalization over other trade arrangements…
Abstract
The major economies of East Asia, namely Japan and the Four Asian Tigers, have always prioritized the WTO-led multilateral trade liberalization over other trade arrangements primarily due to their unique economic structure with a high dependency on the world’s major markets such as the US. Along the same line, even the huge blow from the Asian Financial Crisis in 1997 only managed to trigger a few initiatives to aide East Asian regional integration while being led by different centering bodies, APEC and ASEAN. These dispersed efforts naturally resulted in no realistically significant achievements in the light of ‘integration’ until the present day. Under these circumstances, East Asia now faces a second opportunity to achieve its economic independence from the extra-regional influences via regionalization: the 2009 Global Credit Crunch. This paper hereupon critically reviews the actual progress and the likely impacts of the current global recession on the East Asian region.
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Chang-Yeoul Choi and Joo-Young Lee
Since the declaration of reform and market opening from China in 1990, China has drawn much attention from the world thanks to its rapid economic growth and its emergence as the…
Abstract
Since the declaration of reform and market opening from China in 1990, China has drawn much attention from the world thanks to its rapid economic growth and its emergence as the world's major consumer market and the center of the global economy. Moreover, it established the new trade order, making East Asia the center of the new trade trend as it becomes a manufactural and sales stronghold of multinational companies. The Chinese distribution market is expected to show a high growth rate by 2010 and it draws attention as a new business sector which can bring huge profits. However, advancement of the Chinese distribution industry now faces systemic problems and research on such problems is insufficient. Therefore, in this study we will conduct SWOT analysis based on previous studies on the Chinese distribution industry and use it as a ground to propose strategic solutions for development.
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This paper investigates the nature of port-city relationships in two major port regions of the world, Europe and Asia. Although this issue is well analyzed through either isolated…
Abstract
This paper investigates the nature of port-city relationships in two major port regions of the world, Europe and Asia. Although this issue is well analyzed through either isolated case studies or general models, it proposes a complementary approach based on urban and port indicators available for 121 port cities. In terms of demographic size and container traffic, it shows the decline of port-urban dependence, stemming from changes in global transportation and urban development. However, European and Asian port cities are not identically confronted to the same challenges, notably in terms of their hinterlands. A factor analysis highlights a regional differentiation of port-city relationships according to their insertion in both urban and port systems, with a core-periphery dualism in Europe and a port-city hierarchy in Asia. Thus, the distance to inland markets for European ports and the size of coastal markets for Asian ports are the main factors to explain the nature of port-city relationships in the two areas. It helps to evaluate which European and Asian port cities are comparable beyond their cargo volumes, by putting together micro (local environments) and macro (regional patterns) factors.
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Although previous studies have examined the influence of celebrity involvement in behavioural intentions, the role of celebrity dimensions such as attraction, self-expression and…
Abstract
Purpose
Although previous studies have examined the influence of celebrity involvement in behavioural intentions, the role of celebrity dimensions such as attraction, self-expression and centrality in influencing tourists’ intention in the context of developing countries such as Tanzania remains largely unaddressed. This study, therefore, examined the relationship between celebrity involvement and domestic tourists' intentions to visit tourist attractions, attitude being the mediating variable.
Design/methodology/approach
A questionnaire was self-administered on a convenient sample of 279 domestic tourists in the Tanzania’s four largest regions, namely, Dar es Salaam, Mbeya, Arusha and Mwanza. Employing a quantitative research approach, structural equation modelling was performed to test the cause-and-effect relationships between celebrity involvement and tourists’ intentions before testing the mediating role of attitude in such a relationship. Confirmatory factor analysis was also performed to test the measurement models.
Findings
Attraction emerged to be the main determinant of the celebrity dimension that significantly influenced domestic tourists’ travel intentions, whereas attitude partially mediates such a relationship. Moreover, Bongo Fleva musicians, particularly Diamond Platnumz, one of the leading celebrities in this genre, were found to influence most of the respondents’ travel intentions – he posted a picture on his Instagram account of him touring the Serengeti National Park.
Research limitations/implications
The study focused on domestic tourists residing in four of the Mainland Tanzania’s largest regions, hence excluding those residing on the islands of Unguja and Pemba. Due to cultural differences, including the islands not only could unleash new perspectives on celebrity involvement dimensions but also could have introduced new determinants of travel intentions.
Practical implications
This study offers guidance to tourism businesses on designing their marketing campaigns that they should harness celebrity’s attractive qualities effectively. The focus should be directed not only towards linking destinations with celebrities but also on stimulating positive perception of those destinations, aligning with the attitudes of their followers.
Social implications
The study has set out a new perspective for researchers, practitioners and tourism businesses to refine their promotional strategies and for academicians to gain a deeper understanding of visitor behavioural intention dynamics.
Originality/value
This study has proposed and verified that attraction is a dominant determinant compared to self-expression and centrality in explaining tourists’ travel intentions and attitudes, which play a significant role in explaining such a relationship. Although the study employed a modified theory of planned behaviour in a celebrity involvement study, the findings have broadened the understanding and its applicability in the context of a developing country.
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This study aims to reflect on the past and prospects of digital Korean studies.
Abstract
Purpose
This study aims to reflect on the past and prospects of digital Korean studies.
Design/methodology/approach
Discussion includes the remarkably early adoption of computing in the Korean humanities, the astounding pace in which Korean heritage materials have been digitized, and the challenges of balancing artisanal and laboratory approaches to digital research.
Findings
The main takeaway is to reconsider the widespread tendency in the digital humanities to privilege frequentist analysis and macro-level perspectives.
Practical implications
Cha hopes to discover the future of digital Korean studies in semantic networks, graph databases and anthropological inquiries.
Originality/value
Cha reconsiders existing tendencies in the digital humanities and looks to the future of digital Korean studies.
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Service robotics, a branch of robotics that entails the development of robots able to assist humans in their environment, is of growing interest in the hospitality industry…
Abstract
Purpose
Service robotics, a branch of robotics that entails the development of robots able to assist humans in their environment, is of growing interest in the hospitality industry. Designing effective autonomous service robots, however, requires an understanding of Human–Robot Interaction (HRI), a relatively young discipline dedicated to understanding, designing, and evaluating robotic systems for use by or with humans. HRI has not yet received sufficient attention in hospitality robotic design, much like Human–Computer Interaction (HCI) in property management system design in the 1980s. This article proposes a set of introductory HRI guidelines with implementation standards for autonomous hospitality service robots.
Design/methodology/approach
A set of key user-centered HRI guidelines for hospitality service robots were extracted from 52 research articles. These are organized into service performance categories to provide more context for their application in hospitality settings.
Findings
Based on an extensive literature review, this article presents some HRI guidelines that may drive higher levels of acceptance of service robots in customer-facing situations. Deriving meaningful HRI guidelines requires an understanding of how customers evaluate service interactions with humans in hospitality settings and to what degree those will differ with service robots.
Originality/value
Robots are challenging assumptions on how hospitality businesses operate. They are being increasingly deployed by hotels and restaurants to boost productivity and maintain service levels. Effective HRI guidelines incorporate user requirements and expectations in the design specifications. Compilation of such information for designers of hospitality service robots will offer a clearer roadmap for them to follow.
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Wayne Borchardt, Takhaui Kamzabek and Dan Lovallo
A decade after Powell et al.’s (2011) seminal article on behavioral strategy, which called for models to solve real-world problems, the authors revisit the field to ask whether…
Abstract
Purpose
A decade after Powell et al.’s (2011) seminal article on behavioral strategy, which called for models to solve real-world problems, the authors revisit the field to ask whether behavioral strategy is coming of age. The purpose of this paper is to explain how behavioral strategy can and has been used in real-world settings.
Design/methodology/approach
This study presents a conceptual review with case study examples of the impact of behavioral strategy on real-world problems.
Findings
This study illustrates several examples where behavioral strategy debiasing has been effective. Although no causal claims can be made, with the stark contrast between the negative impact of biased strategies and the positive results emerging from debiasing techniques, this study argues that there is evidence of the benefits of a behavioral strategy mindset, and that this should be the mindset of a responsible strategic leader.
Practical implications
This study presents a demonstration of analytical, debate and organizational debiasing techniques and how they are being used in real-world settings, specifically military intelligence, Mergers and acquisitions deal-making, resource allocation and capital projects.
Social implications
Behavioral strategy has broad application in private and public sectors. It has proven practical value in various settings, for example, the application of reference class forecasting in large infrastructure projects.
Originality/value
A conceptual review of behavioral strategy in the wild.
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H.A. Dimuthu Maduranga Arachchi and G. Dinesh Samarasinghe
This study aims to examine the influence of the derived attributes of embedded artificial intelligence-mobile smart speech recognition (AI-MSSR) technology, namely perceived…
Abstract
Purpose
This study aims to examine the influence of the derived attributes of embedded artificial intelligence-mobile smart speech recognition (AI-MSSR) technology, namely perceived usefulness, perceived ease of use (PEOU) and perceived enjoyment (PE) on consumer purchase intention (PI) through the chain relationships of attitudes to AI and consumer smart experience, with the moderating effect of consumer innovativeness and Generation (Gen) X and Gen Y in fashion retail.
Design/methodology/approach
The study employed a quantitative survey strategy, drawing a sample of 836 respondents from Sri Lanka and India representing Gen X and Gen Y. The data analysis was carried out using smart partial least squares structural equation modelling (PLS-SEM).
Findings
The findings show a positive relationship between the perceived attributes of MSSR and consumer PI via attitudes towards AI (AAI) and smart consumer experiences. In addition, consumer innovativeness and Generations X and Y have a moderating impact on the aforementioned relationship. The theoretical and managerial implications of the study are discussed with a note on the research limitations and further research directions.
Practical implications
To multiply the effects of embedded AI-MSSR and consumer PI in fashion retail marketing, managers can develop strategies that strengthen the links between awareness, knowledge of the derived attributes of embedded AI-MSSR and PI by encouraging innovative consumers, especially Gen Y consumers, to engage with embedded AI-MSSR.
Originality/value
This study advances the literature on embedded AI-MSSR and consumer PI in fashion retail marketing by providing an integrated view of the technology acceptance model (TAM), the diffusion of innovation (DOI) theory and the generational cohort perspective in predicting PI.
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