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This paper aims to review, systematize and integrate existing research on disposition effect and investments. This study conducts bibliometric analysis, including performance analysis and science mapping and thematic analysis of studies on disposition effect.

This study adopted a thematic and bibliometric analysis of the papers related to the disposition effect. A total of 231 papers published from 1971 to 2021 were retrieved from the Scopus database for the study, and bibliometric analysis and thematic analysis were performed.

This study’s findings demonstrate that research on the disposition effect is interdisciplinary and influences the research in the domain of both corporate and behavioral finance. This review indicates limited research on cross-country data. This study indicates a strong presence of work on investor psychology and behavioral finance when it comes to the disposition effect. The findings of thematic analysis further highlight that most of the research has focused on prospect theory, trading strategies and a few cognitive and emotional biases.

The findings of this study can be used by investors to minimize their biases and losses. The study also highlights new techniques in machine learning and neurosciences, which can help investment firms better understand their clients’ behavior. Policymakers can use the study’s findings to nudge investors’ behavior, focusing on minimizing the effects of the disposition effect.

This study has performed the quantitative bibliometric and thematic analysis of existing studies on the disposition effect and identified areas of future research on the phenomenon of disposition effect in investments.

In this study, a dynamic contracting model is developed between a venture capitalist (VC) and an entrepreneur (EN) to explore the influence of asymmetric beliefs regarding output-relevant parameters, agency conflicts and complementarity on the VC's posterior beliefs through the EN's unobservable effort choices to influence the optimal dynamic contract.

The authors construct the contracting model by incorporating the VC's effort, which is ignored in most studies. Using backward induction and a discrete-time approximation approach, the authors solve the continuous-time contract design problem, which evolves into a nonlinear ordinary differential equation (ODE).

The optimal equity share that the VC provides to the EN decreases over time. In accordance with the empirical evidence, the EN's optimistic beliefs regarding the project's profitability positively affect its equity share. However, the interactions between the optimal equity share, project risk and both partners' degrees of risk aversion are not monotonic. Moreover, the authors find that the optimal equity share increases with the degree of complementarity, which indicates that the EN is willing to cooperate with the VC. This study’s results also show that the optimal equity shares at each time are interdependent if the VC is risk-averse and independent if the VC is risk-neutral.

In conclusion, the authors highlight two potential directions for future research. First, the authors only considered a single VC, whereas in practice, a risk project may be carried out by multiple VCs, and it is interesting to discuss how the degree of complementarity affects the number of VCs that ENs contract. Second, the authors may introduce jumps and consider more general multivariate stochastic volatility models for output dynamics and analyze the characteristics of the optimal contracts. Third, further research can deal with other forms of discretionary output functions concerning complementarity, such as Cobb–Douglas and constant elasticity of substitution (See Varian, 1992).

The results of this study have several implications. First, it offers a novel approach to designing dynamic contracts that are specific and easy to operate. To improve the complicated venture investment situation and abate conflict between contractual parties, this study plays a good reference role. Second, the synergy effect proposed in this study provides a theoretical explanation for the executive compensation puzzle in economics, in which managers are often “rewarded for luck” (Bertrand and Mullainathan, 2001; Wu et al., 2018). This result indicates a realistic perspective on financing and establishing cooperative relationships, which enhances the efficiency of venture investment. Third, from an empirical standpoint, one can apply this framework to study research and development (R&D) problems.

First, the authors introduce asymmetric beliefs and Bayesian learning to study the dynamic contract design problem and discuss their effects on equity share. Second, the authors incorporate the VC's effort into the contracting problem, and analyze the synergistic effect of effort complementarity on the optimal dynamic contract.

In most economies, there are rules from the market regulators or government to sell at an equal wholesale price (EWP). But when one upstream channel is facing a negative demand disruption and another positive, EWP can create extra pressure on the disadvantageous supply chain partner, which faces negative disruption. The purpose of this study is to analyse the impact of EWP and the scope of the discriminatory wholesale price (DWP) during disruptions.

For the study, the authors used a dual-channel supply chain consisting of a manufacturer, online retailer (OR) and traditional brick-and-mortar (BM) retailer. Stackelberg game is used to model the interaction between the upstream and downstream channel partners, and the horizontal Nash game to analyse the interaction within downstream channel partners. For modelling asymmetric disruption, the authors took instances from the lock-down and post-lock-down periods of the COVID-19 pandemic, where consumers flow from BM retailer to OR store.

By analysing the disruption period, the authors found that this asymmetric disruption is detrimental to the BM channel, favourable to OR and has no impact on the manufacturer. But with DWP, the authors found that the profit of the BM channel and manufacturer can be increased during disruption. Though the profit of the OR decreased, it was found to be higher than in the pre-disruption period. Under DWP, the consumer surplus increased during disruption, making it favourable for the customers also. Thus, DWP can aid in creating a win-win strategy for all the supply chain partners during asymmetric disruption. Later as an extension to the study, the authors analysed the impact of the consumer transfer factor and found that it plays a crucial role in the optimal decisions of the channel partner during DWP.

Very scant literature analyses the intersection of DWP and disruptions. To the best of the authors’ knowledge, this study, for the first time uses DWP as a tool to help the disadvantageous supply chain partner during asymmetric disruptions. The study findings will assist the government, market regulators and manufacturers in revamping the wholesale pricing policies and strategies to help the disadvantageous supply chain partner during asymmetric disruption.

Islamic banking has undergone significant adaption since its inception. This study aims to investigate why and how Islamic banks adapt their services, using participatory financing as evidence.

A qualitative study is designed, using working capital financing and commodity operations financing in Pakistan as analytical units. The data for each analytical unit is analyzed using a qualitative content analysis, while the findings are synthesized using a cross-case synthesis method.

Findings suggest that participatory financing has undergone extensive adaptation in the Islamic banking industry of Pakistan, in the wake of resolving constraints to participatory financing and increasing its viability. Consequently, participatory finance has emerged as an attractive and viable option in Pakistan. These findings suggest that unlike in the past, where Islamic banks used to buffer themselves from the environment and ignore the market demands, they have learned to respond effectively to the market demands and the challenges posed by the environment.

Findings suggest that the adaptation strategy is more effective than the migration strategy, because it enables the financial service systems to reduce the underlying risks by avoiding emergent threats and eradicating the inherent weaknesses.

The extant literature provides a generalized view on the adaptation process that Islamic banks undergo to comply with their environment. However, it is limited in terms of conceptualizing the adaptations and innovations in their products and the underlying structural variations. The present study fills this gap.

This study aims to explore how subsidiary capabilities collectively configure for performance. Additionally, it seeks to examine whether these configurations of capabilities can provide equifinal solutions through developing a comprehensive research framework that focuses on subsidiaries in China.

With a data set collected through a questionnaire from 172 Korean multinational enterprises (MNEs) in China, this study used a fuzzy-set qualitative comparative analysis to detect the capability conditions and configurations. These configurations represent combinations of various subsidiary capabilities linked to high performance.

This study identified several complex pathways with distinct configurations for high subsidiary performance. The findings demonstrate the importance of configurations over individual conditions. Thus, the results highlight that the effectiveness of diverse capabilities, which are widely believed to singularly contribute to the high performance of MNE subsidiaries, depends on how each combines with other capabilities. Overall, the findings provide a richer and fine-grained understanding of the role and relative importance of various forms of MNE subsidiary capabilities and how the joint effect of these subsidiaries contributes to high performance.

This study suggests that MNE managers should comprehensively understand how subsidiary capabilities are configured to produce subsidiary performance outcomes. This specifically illustrates the importance of understanding the mutually conflicting yet collectively exhaustive results of multi-selective solutions and aims to align with China’s industrial and regional heterogeneity.

By examining the role of MNE subsidiary capability configurations, which may collectively influence the subsidiary’s performance, this study contributes to the literature. It elucidates how MNE subsidiaries may achieve superior performance by developing and possessing various capabilities tailored to the local context.

Automation of detecting cracked surfaces on buildings or in any industrially manufactured products is emerging nowadays. Detection of the cracked surface is a challenging task for inspectors. Image-based automatic inspection of cracks can be very effective when compared to human eye inspection. With the advancement in deep learning techniques, by utilizing these methods the authors can create automation of work in a particular sector of various industries.

In this study, an upgraded convolutional neural network-based crack detection method has been proposed. The dataset consists of 3,886 images which include cracked and non-cracked images. Further, these data have been split into training and validation data. To inspect the cracks more accurately, data augmentation was performed on the dataset, and regularization techniques have been utilized to reduce the overfitting problems. In this work, VGG19, Xception and Inception V3, along with Resnet50 V2 CNN architectures to train the data.

A comparison between the trained models has been performed and from the obtained results, Xception performs better than other algorithms with 99.54% test accuracy. The results show detecting cracked regions and firm non-cracked regions is very efficient by the Xception algorithm.

The proposed method can be way better back to an automatic inspection of cracks in buildings with different design patterns such as decorated historical monuments.

A country’s institutional environment influences every facet of its business. This paper aims to identify institutional factors (state ownership, government attention on employment and employees’ educational background) that affect the asymmetric cost behavior in China.

Using 2,570 listed firms’ data between 2002 and 2015, we use empirical models to explore the effects of state ownership, government attention on employment and employees’ educational background on the asymmetric cost behavior in China.

This study found that the asymmetric cost behavior of central state-owned enterprises (CSOEs) is greater than local state-owned enterprises (LSOEs). Meanwhile, the empirical results show that government attention on employment is reflected in five-year government plans, and employees’ educational backgrounds are positively associated with asymmetric cost behavior.

This study contributes to the economic theory of sticky costs, institutional theory and asymmetric cost behavior literature by providing evidence that shows how government intervention and employee educational background limit the flexibility of corporate cost adjustments. Additionally, this study provides guidance to policymakers by showing how government long-term plans affect firm-level resource adjustment decisions.

The purpose of this paper is to improve autonomous flight performance of a fixed-wing unmanned aerial vehicle (UAV) via simultaneous morphing wingtip and control system design conducted with optimization, computational fluid dynamics (CFD) and machine learning approaches.

The main wing of the UAV is redesigned with morphing wingtips capable of dihedral angle alteration by means of folding. Aircraft dynamic model is derived as equations depending only on wingtip dihedral angle via Nonlinear Least Squares regression machine learning algorithm. Data for the regression analyses are obtained by numerical (i.e. CFD) and analytical approaches. Simultaneous perturbation stochastic approximation (SPSA) is incorporated into the design process to determine the optimal wingtip dihedral angle and proportional-integral-derivative (PID) coefficients of the control system that maximizes autonomous flight performance. The performance is defined in terms of trajectory tracking quality parameters of rise time, settling time and overshoot. Obtained optimal design parameters are applied in flight simulations to test both longitudinal and lateral reference trajectory tracking.

Longitudinal and lateral autonomous flight performances of the UAV are improved by redesigning the main wing with morphing wingtips and simultaneous estimation of PID coefficients and wingtip dihedral angle with SPSA optimization.

This paper originally discusses the simultaneous design of innovative morphing wingtip and UAV flight control system for autonomous flight performance improvement. The proposed simultaneous design idea is conducted with the SPSA optimization and a machine learning algorithm as a novel approach.

The purpose of this paper is to bridge the gap between the existing theoretical and empirical studies by examining the asymmetric return–volume relationship. Indeed, the authors aim to shed light on the return–volume linkages for French-listed small and medium-sized enterprises (SMEs) compared to blue chips across different market regimes.

This study includes both large capitalizations included in the CAC 40 index and listed SMEs included in the Euronext Growth All Share index. The Markov-switching (MS) approach is applied to understand the asymmetric relationship between trading volume and stock returns. The study investigates also the causal impact between stock returns and trading volume using regime-dependent Granger causality tests.

Asymmetric contemporaneous and lagged relationships between stock returns and trading volume are found for both large capitalizations and listed SMEs. However, the causality investigation reveals some differences between large capitalizations and SMEs. Indeed, causal relationships depend on market conditions and the size of the market.

This paper explains the asymmetric return–volume relationship for both large capitalizations and listed SMEs by incorporating several psychological biases, such as the disposition effect, investor overconfidence and self-attribution bias. Future research needs to deepen the analysis especially for SMEs as most of the literature focuses on large capitalizations.

This empirical study has fundamental implications for portfolio management. The findings provide a deeper understanding of how trading activity impact current returns and vice versa. The authors’ results constitute an important input to build and control trading strategies.

This paper fills the literature gap on the asymmetric return–volume relationship across different regimes. To the best of the authors’ knowledge, the present study is the first empirical attempt to test the asymmetric return–volume relationship for listed SMEs by using an accurate MS framework.

Education to an international standard that can provide successful careers has arguably been the main drive of many parents to allocate scarce financial resources to the education of their progenies. Competition for high-calibre degrees has seen an explosion of opportunity in the private education sector. As many Global South countries do not have the equivalent control of standards provided in the United Kingdom (UK) by the Quality Assurance Agency, this can lead to dissatisfaction with the qualifications received in the Global South. This chapter aims to explore the factors influencing participation in higher education in the Global North versus the Global South, particularly where these relate to or vary by locality, and the relative influence these have on the propensity of the learners living in these areas to progress into higher education in local universities. The conceptual framework and methodology provided in this chapter show the differences between transnational education (TNE) as primarily a standalone or independent activity supported by a UK higher education institution (HEI)/provider versus being a collaborative effort between a UK host university and a South/Southeast Asian HEI university partner. The methodology provides a strategy for UK host institutions to best provide carefully aligned independent or collaborative partnerships with the partner country regulatory bodies. The chapter concludes with the author’s personal reflections and recommendations based on decades of collaborative and independent university provision of TNE. These reflections are focused on design-based courses in selected South/Southeast Asian HEI partnerships with the College of Architecture and Design at Birmingham City University.