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During the analysis of the 1999 avalanche winter and of the winter storm Lothar on 26 December 1999, the Swiss Federal Institute for Snow and Avalanche Research SLF, Davos conducted an inquiry of the cable car‐ and ski lift‐companies in German‐ and French speaking part of Switzerland. This arti‐cle presents the results in detail. In the whole of Switzerland there were 1'821 cable cars and ski lifts in 1999 (not counting 550 small ski lifts). The SLF sent its questionnaire to 117 companies. A considerable proportion of them (79%) have been returned. In February 1999 avalanches and snow pressure induced damages on 44 cable cars and ski lifts; repairs cost more than 17 Mio. SFr. Due to high avalanche danger, 37% of all lift facilities had to be closed for an average of seven days. The loss of earnings for Switzerland (without Ticino) is estimated at 78 Mio. SFr. compared to February 1998. The winter storm Lothar caused damage to 127 cable cars and ski lifts. The cost of damage repairs is estimated at 7.6 Mio. SFr. The storm interrupted power supply for 14% of the lift facilities; 58% had to be closed down due to high wind speeds. The loss of earnings caused by winter storm Lothar amounts to approx. 39 Mio. SFr. for the Swiss cable car and ski lift companies (without Ticino). Immediately after the events of 1999, 32% of the companies interviewed took measures to reduce the negative consequences (e.g. price reductions, press releases or publicity campaigns). To improve public relations is considered to be an important measure to cope with consequences of natural hazards in the future by 39% of the companies.

The purpose of this paper is to survey bank credit managers and analysts in Mozambique regarding their attitude toward firm diversification.

Forty-five credit managers and analysts from 23 banks in Mozambique were surveyed about their views on diversification and diversified firms. Questionnaires were used. Data were analyzed using chi-square test and binomial test.

Credit analysts and managers in Mozambique have a generally positive attitude toward diversification. This is mainly due to the coinsurance effects and stability of cash flows that diversification could provide. They, however, prefer moderately diversified to highly diversified firms and related to unrelated diversified firms. This is a puzzle, given the expectation that greater unrelated diversification is better able to provide coinsurance.

The study provides information that is useful for understanding the diversification–cost of capital relationship and could help corporate managers in making capital structure decisions.

Previous researchers have not studied the attitude of credit managers/analysts toward diversification in Mozambique using the survey approach. The study contributes to the literature on diversification and access to external finance, the diversification discount and cash holding behavior of firms.

Social trading platforms are considered to be amongst the major innovations in online trading. The purpose of this article is to analyze the trading activity of traders on social trading networks by taking a behavioral approach. Additionally, the authors investigate the factors that influence the irrational part of trading activity derived from the key characteristics of these platforms, i.e. those dealing with social interaction.

The investigation utilizes an extensive set of trading data from two major platforms in Germany to study the trading behavior. The authors apply a fixed effects two-stage least squares (2SLS) approach to quantify the relationship between trading activity and performance and define overconfidence as the part of trading activity that is irrationally motivated and results in negative returns.

The results provide evidence for the negative relationship between overconfidence and return on social trading platforms. The authors find that the number of followers and some platform-specific features significantly affect the trading behavior of the traders.

The authors contribute to the existing literature by exploring how the novel social interaction characteristics of online trading impact trading activity by giving rise to a new dimension of overconfidence. In addition, the authors evidence that the different frameworks of the platforms motivate heterogenous behavioral responses by the signalers. Finally, the authors refine existing studies by applying a distinct methodology for modeling overconfidence.

The purpose of this paper is to review the insights provided by behavioral finance studies conducted in the last decade (2006-2015) examining behavioral variables in financial decision making.

The literature review assesses 623 qualitative and quantitative studies published in various international refereed journals and identifies possible scope of future work.

The paper identifies stock market anomalies which contradict rational agents of modern portfolio theory at an aggregate level and behavioral mediators, influencing the financial decision making at an investor level. The paper also attempts to classify different dimensions of risk as professed by the investor.

The authors synthesize the contribution made by behavioral finance studies in extending the knowledge of financial market and investor behavior.

This study aims to understand and document the impact of market-based – market returns and momentum – as well as firm-specific – size, book-to-market (B/M) ratio, price-to-earnings ratio (PER) and cash flow (CF) – factors on pricing of Shari’ah-compliant securities as explanation of variations in stock returns in an emerging market – Pakistan’s Karachi Stock Exchange.

Initially, the authors test Fama and French (FF) three-factor model – market risk premium, size and B/M – followed by modified FF model by including additional risk factors (PER, CF and momentum) over a 10-year period (2001-2010).

Our results support superiority of FF three-factor model over single-factor capital asset pricing model. However, addition of further risk factors – including PER, CF and momentum – improves explanatory power of the model, as well as refines the selection of risk factors. In this study, CF, B/M and momentum factors remain insignificant. Traditional B/M factor in FF model is replaced by PER.

Based on the modified FF model, the authors propose a stock valuation model for Shari’ah-compliant securities consisting of three factors: market returns, size and earnings, which explains 76per cent variations in cross sectional stock returns.

To the best of the authors’ knowledge, this is the first study (which combines market-based as well as fundamental factors) on pricing of Islamic securities and identification of risk factors in an emerging market – Karachi Stock Exchange.

The purpose of this paper is to investigate the causal relationship between extent of diversification and performance among Indian companies. The key issue is to find out whether diversification provides irresistible opportunities to increase firm performance or is it the superior profitability that motivates management to diversify.

Product diversification is calculated by using Entropy index measure. To measure joint endogeneity of corporate diversification and firm performance, both variables are treated as endogenous in a simultaneous equation model.

The results report that the association between diversification and performance turn strongly significant and positive after controlling the issue of endogeneity. The study finds a strong two-way relationship between extent of diversification and firm performance. As indicated by the results, the extent of diversification is positively related to performance, thereby implying that diversified firms experience a significant diversification premium. The study also demonstrates a positive relation of performance and total diversification indicating that good performance leads to greater diversification.

Certain variables such as R&D intensity, export intensity and risk could not be included in the analysis for want of data. Inclusion of these independent variables could have strengthened the model and its implications.

The results strongly implicate/recommend the managers of developing countries to adopt the strategy of diversification to overcome institutional inefficiencies prevailing in their domicile environment. Corporate heads must also capture the correct timings/dynamism in environment before pursuing diversification as a strategy of growth. There exists causality between diversification and performance; hence, profitable firms should capitalize synergetic effects of diversification strategy and use it as a medium of growth.

There was hardly any literature available on causal relationship between diversification and performance with respect to emerging countries. There was even a wider gap specifically in relation to India where none of the researchers has so far studied causality between diversification and performance controlling endogeneity.

The purpose of this study is to add to the understanding of humility‐based economic development and entrepreneurship among the Amish – a religious group – in the USA, whose culture values asceticism, frugality, thrift and work, as well as humility.

The paper presents an ethnographic research study.

Amish adults teach their young that work is pleasurable. In order to maintain their values, the Amish try to avoid close contact with people who do not hold the same traditions. Furthermore, due to religious discrimination in the past, the Amish often exhibit a mistrust of outsiders. The primary motive of self‐employment among the Amish is neither profit nor prestige, but rather the maintenance of cultural values, separately from mainstream society such as to emphasise humility over pride. Self‐employment is perceived as much a social activity as an economic activity, and very importantly, it is compatible with religious beliefs.

Given the choice, the Amish prefer not to work for enterprises in mainstream society. These people prefer to be self‐employed or to work amongst themselves, as it is their belief that a community of believers is the context for life.

This research paper reports on an ethnographic research study that reveals the reasons why Amish people in Lancaster County choose self‐employment as a means of livelihood, the changing nature of their enterprises, and the causal variables explaining why there is a shift from farm‐based self‐employment on family farms, to non‐land‐based entrepreneurship.

The goal of this exploratory study was to investigate if, when asked to state their preferences for the allocation of public monies toward broad governmental functions, individuals state them at random or if their choice follows some rational pattern that can be traced using explanatory variables.

The paper presents the results of a survey conducted in Greece, Italy and Switzerland where the contingent allocation method was applied to a hypothetical allocation scenario of public monies to the functions of the government.

Findings based on 428 answers revealed that individuals were able to state their preferences for the various functions of the government as well as discriminate between the relative utility of each task and that the country context and personal characteristics significantly influence the respondents' allocations.

From a policy perspective, understanding citizen preferences in budget allocation may help governments rationalize the spending of public money.

Climate change poses diverse, often fundamental, challenges to livelihoods of island peoples. The purpose of this study is to demonstrate that these challenges must be better understood before effective and sustainable adaptation is possible.

Understanding past livelihood impacts from climate change can help design and operationalize future interventions. In addition, globalization has had uneven effects on island countries/jurisdictions, producing situations especially in archipelagoes where there are significant differences between core and peripheral communities. This approach overcomes the problems that have characterized many recent interventions for climate-change adaptation in island contexts which have resulted in uneven and at best only marginal livelihood improvements in preparedness for future climate change.

Island contexts have a range of unique vulnerability and resilience characteristics that help explain recent and proposed responses to climate change. These include the sensitivity of coastal fringes to climate-environmental changes: and in island societies, the comparatively high degrees of social coherence, closeness to nature and spirituality that are uncommon in western contexts.

Enhanced understanding of island environmental and social contexts, as well as insights from past climate impacts and peripherality, all contribute to more effective and sustainable future interventions for adaptation.

The need for more effective and sustainable adaptation in island contexts is becoming ever more exigent as the pace of twenty-first-century climate change increases.