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1 – 10 of over 82000William Steele and Kevin Plunkett
Recently there has been a proliferation of interest in the topic oftotal supply chain management. This interest has prompted many companiesin the fast moving consumer goods sector…
Abstract
Recently there has been a proliferation of interest in the topic of total supply chain management. This interest has prompted many companies in the fast moving consumer goods sector to review their inventory policies and, in particular, levels of finished stock. Responsibility for finished stock often falls between production and distribution leaving it rather like a “piggy in the middle”. Unilever and Insight have pooled their resources in order to perform joint research into how stock levels can be reduced across the total supply chain and how responsibility for finished stock can be shared between production and distribution. Describes the strengths and weaknesses of different techniques in this field. Findings from the research show that simulation, when combined with mathematical theory, is a powerful and practical tool for both reducing stock through improved inventory policies and bridging the gap between production and distribution. An analogous approach may be applied to the control of stock levels of raw materials and packaging.
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David Ray, John Gattorna and Mike Allen
Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The…
Abstract
Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The particular focus is on reviewing current practice in distribution costing and on attempting to push the frontiers back a little by suggesting some new approaches to overcome previously defined shortcomings.
The primary objective of this research is to provide evidence that there are two distinct layers of investor sentiments that can affect asset valuation models. The first is…
Abstract
Purpose
The primary objective of this research is to provide evidence that there are two distinct layers of investor sentiments that can affect asset valuation models. The first is general market-wide sentiments, while the second is biased approaches toward specific assets.
Design/methodology/approach
To achieve the goal, the authors conducted a multi-step analysis of stock returns and constructed complex sentiment indices that reflect the optimism or pessimism of stock market participants. The authors used panel regression with fixed effects and a sample of the US stock market to improve the explanatory power of the three-factor models.
Findings
The analysis showed that both market-level and stock-level sentiments have significant contributions, although they are not equal. The impact of stock-level sentiments is more profound than market-level sentiments, suggesting that neglecting the stock-level sentiment proxies in asset valuation models may lead to severe deficiencies.
Originality/value
In contrast to previous studies, the authors propose that investor sentiments should be measured using a multi-level factor approach rather than a single-factor approach. The authors identified two distinct levels of investor sentiment: general market-wide sentiments and individual stock-specific sentiments.
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Indicator definition is essential for manufacturing system performance evaluation. When the relevant decision system is hierarchical, so must be the indicators. Proposes an…
Abstract
Indicator definition is essential for manufacturing system performance evaluation. When the relevant decision system is hierarchical, so must be the indicators. Proposes an indicator ‐ the stock profile, which fits multi‐level decision making for time relevant aspects. After a short survey of the problem, recalls basics of stock profiles, then presents their adaptation to multi‐level decision making and illustrates this with a flow‐shop production case study.
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Shilpa Peswani and Mayank Joshipura
The portfolio of low-risk stocks outperforms the portfolio of high-risk stocks and market portfolios on a risk-adjusted basis. This phenomenon is called the low-risk effect. There…
Abstract
Purpose
The portfolio of low-risk stocks outperforms the portfolio of high-risk stocks and market portfolios on a risk-adjusted basis. This phenomenon is called the low-risk effect. There are several economic and behavioral explanations for the existence and persistence of such an effect. However, it is still unclear whether specific sector orientation drives the low-risk effect. The study seeks to answer the following important questions in Indian equity markets: (a) Whether sector bets or stock bets mainly drive the low-risk effect? (b) Is it a mere proxy for the well-known value effect? (c) Does the low-risk effect prevail in long-only portfolios?
Design/methodology/approach
The study is based on all the listed stocks on the National Stock Exchange (NSE) of India from December 1994 to September 2018. It classifies them into 11 Global Industry Classification Standard (GICS) sectors to construct stock-level and sector-level BAB (Betting Against Beta) and long-only low-risk portfolios. It follows the study of Asness et al. (2014) to construct various BAB portfolios. It applies Fama–French (FF) three-factor and Fama–French–Carhart (FFC) four-factor asset pricing models in addition to Capital Asset Pricing Model (CAPM) to examine the strength of BAB, sector-level BAB, stock-level BAB and long-only low-beta portfolios.
Findings
Both sector- and stock-level bets contribute to the return of the low-risk investing strategy, but the stock-level effect is dominant. Only betting on safe sectors or industries will not earn economically significant alpha. The low-risk effect is unique and not a value effect in disguise. Both long-short and long-only portfolios within sectors and industry groups deliver positive excess returns. Consumer staples, financial, materials and healthcare sectors mainly contribute to the returns of the low-risk effect in India. This study offers empirical evidence against the Samuelson (1998) micro-efficient market given the strong performance of the stock-level low-risk effect.
Practical implications
The superior performance of the low-risk investment strategies at both stock and sector levels offers investors an opportunity to strategically invest in stocks from the right sectors and earn high risk-adjusted returns with lower drawdowns over an entire market cycle. Besides, it paves the way for stock exchanges and index manufacturers to launch sector-specific low-volatility indices for relevant sectors. Passive funds can launch index funds and exchange-traded funds by tracking these indices. Active fund managers can espouse sector-specific low-risk investment strategies based on the results of this and similar other studies.
Originality/value
The study is the first of its kind. It offers insights into the portfolio characteristics and performance of the long-short and the long-only variant of low-risk portfolios within sectors and industry groups. It decomposes the low-risk effect into sector-level and stock-level effects.
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The terms “inventory” and “stock” are usually seen as being synonymous and are used to describe materials which can be identified at various stages of the transformation process…
Abstract
The terms “inventory” and “stock” are usually seen as being synonymous and are used to describe materials which can be identified at various stages of the transformation process in organisations. It is customary to divide inventory into three categories:
Overview All organisations are, in one sense or another, involved in operations; an activity implying transformation or transfer. The major portion of the body of knowledge…
Abstract
Overview All organisations are, in one sense or another, involved in operations; an activity implying transformation or transfer. The major portion of the body of knowledge concerning operations relates to production in manufacturing industry but, increasingly, similar problems are to be found confronting managers in service industry. It is only in the last decade or so that new technology, involving, in particular, the computer, has encouraged an integrated view to be taken of the total business. This has led to greater recognition being given to the strategic potential of the operations function. In order to provide greater insight into operations a number of classifications have been proposed. One of these, which places operations into categories termed factory, job shop, mass service and professional service, is examined. The elements of operations management are introduced under the headings of product, plant, process, procedures and people.
John Gattorna, Abby Day and John Hargreaves
Key components of the logistics mix are described in an effort tocreate an understanding of the total logistics concept. Chapters includean introduction to logistics; the…
Abstract
Key components of the logistics mix are described in an effort to create an understanding of the total logistics concept. Chapters include an introduction to logistics; the strategic role of logistics, customer service levels, channel relationships, facilities location, transport, inventory management, materials handling, interface with production, purchasing and materials management, estimating demand, order processing, systems performance, leadership and team building, business resource management.
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This aim of this paper is to check whether the incentive role of executive stock options (ESO) depends on their level.
Abstract
Purpose
This aim of this paper is to check whether the incentive role of executive stock options (ESO) depends on their level.
Design/methodology/approach
The study is based on data from a sample of 538 American firms over 11 years (1994 to 2004). Using regression analysis, the degree of association between earnings management and the percentage stock options in total compensation for different levels of the stock options granted is determined.
Findings
The study finds that ESO decreases the earning management and represents an additional control mechanism. When considering the level of ESO, a long‐term alignment of interests is found at low levels. However, at high levels, ESO becomes an additional source of agency conflict in the short and long runs.
Research limitations/implications
The results confirm the coexistence of both the contractual and the managerial power hypotheses.
Practical implications
This study suggests that the executive compensation strategy and particularly its stock option component should be reviewed.
Originality/value
This study contributes to previous research by underlining the incentive impact of the level of stock options on the role of further incentive compensation.
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Sees the objective of teaching financial management to be to helpmanagers and potential managers to make sensible investment andfinancing decisions. Acknowledges that financial…
Abstract
Sees the objective of teaching financial management to be to help managers and potential managers to make sensible investment and financing decisions. Acknowledges that financial theory teaches that investment and financing decisions should be based on cash flow and risk. Provides information on payback period; return on capital employed, earnings per share effect, working capital, profit planning, standard costing, financial statement planning and ratio analysis. Seeks to combine the practical rules of thumb of the traditionalists with the ideas of the financial theorists to form a balanced approach to practical financial management for MBA students, financial managers and undergraduates.
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