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1 – 10 of 295Mohammadreza Tavakoli Baghdadabad
We propose a risk factor for idiosyncratic entropy and explore the relationship between this factor and expected stock returns.
Abstract
Purpose
We propose a risk factor for idiosyncratic entropy and explore the relationship between this factor and expected stock returns.
Design/methodology/approach
We estimate a cross-sectional model of expected entropy that uses several common risk factors to predict idiosyncratic entropy.
Findings
We find a negative relationship between expected idiosyncratic entropy and returns. Specifically, the Carhart alpha of a low expected entropy portfolio exceeds the alpha of a high expected entropy portfolio by −2.37% per month. We also find a negative and significant price of expected idiosyncratic entropy risk using the Fama-MacBeth cross-sectional regressions. Interestingly, expected entropy helps us explain the idiosyncratic volatility puzzle that stocks with high idiosyncratic volatility earn low expected returns.
Originality/value
We propose a risk factor of idiosyncratic entropy and explore the relationship between this factor and expected stock returns. Interestingly, expected entropy helps us explain the idiosyncratic volatility puzzle that stocks with high idiosyncratic volatility earn low expected returns.
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Jan F. Klein, Yuchi Zhang, Tomas Falk, Jaakko Aspara and Xueming Luo
In the age of digital media, customers have access to vast digital information sources, within and outside a company's direct control. Yet managers lack a metric to capture…
Abstract
Purpose
In the age of digital media, customers have access to vast digital information sources, within and outside a company's direct control. Yet managers lack a metric to capture customers' cross-media exposure and its ramifications for individual customer journeys. To solve this issue, this article introduces media entropy as a new metric for assessing cross-media exposure on the individual customer level and illustrates its effect on consumers' purchase decisions.
Design/methodology/approach
Building on information and signalling theory, this study proposes the entropy of company-controlled and peer-driven media sources as a measure of cross-media exposure. A probit model analyses individual-level customer journey data across more than 25,000 digital and traditional media touchpoints.
Findings
Cross-media exposure, measured as the entropy of information sources in a customer journey, drives purchase decisions. The positive effect is particularly pronounced for (1) digital (online) versus traditional (offline) media environments, (2) customers who currently do not own the brand and (3) brands that customers perceive as weak.
Practical implications
The proposed metric of cross-media exposure can help managers understand customers' information structures in pre-purchase phases. Assessing the consequences of customers' cross-media exposure is especially relevant for service companies that seek to support customers' information search efforts. Marketing agencies, consultancies and platform providers also need actionable customer journey metrics, particularly in early stages of the journey.
Originality/value
Service managers and marketers can integrate the media entropy metric into their marketing dashboards and use it to steer their investments in different media types. Researchers can include the metric in empirical models to explore customers' omni-channel journeys.
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Zhouxia Li, Zhiwen Pan, Xiaoni Wang, Wen Ji and Feng Yang
Intelligence level of a crowd network is defined as the expected reward of the network when completing the latest tasks (e.g. last N tasks). The purpose of this paper is to…
Abstract
Purpose
Intelligence level of a crowd network is defined as the expected reward of the network when completing the latest tasks (e.g. last N tasks). The purpose of this paper is to improve the intelligence level of a crowd network by optimizing the profession distribution of the crowd network.
Design/methodology/approach
Based on the concept of information entropy, this paper introduces the concept of business entropy and puts forward several factors affecting business entropy to analyze the relationship between the intelligence level and the profession distribution of the crowd network. This paper introduced Profession Distribution Deviation and Subject Interaction Pattern as the two factors which affect business entropy. By quantifying and combining the two factors, a Multi-Factor Business Entropy Quantitative (MFBEQ) model is proposed to calculate the business entropy of a crowd network. Finally, the differential evolution model and k-means clustering are applied to crowd intelligence network, and the species distribution of intelligent subjects is found, so as to achieve quantitative analysis of business entropy.
Findings
By establishing the MFBEQ model, this paper found that when the profession distribution of a crowd network is deviate less to the expected distribution, the intelligence level of a crowd network will be higher. Moreover, when subjects within the crowd network interact with each other more actively, the intelligence level of a crowd network becomes higher.
Originality/value
This paper aims to build the MFBEQ model according to factors that are related to business entropy and then uses the model to evaluate the intelligence level of a number of crowd networks.
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H.A. Kumara Swamy, Sankar Mani, N. Keerthi Reddy and Younghae Do
One of the major challenges in the design of thermal equipment is to minimize the entropy production and enhance the thermal dissipation rate for improving energy efficiency of…
Abstract
Purpose
One of the major challenges in the design of thermal equipment is to minimize the entropy production and enhance the thermal dissipation rate for improving energy efficiency of the devices. In several industrial applications, the structure of thermal device is cylindrical shape. In this regard, this paper aims to explore the impact of isothermal cylindrical solid block on nanofluid (Ag – H2O) convective flow and entropy generation in a cylindrical annular chamber subjected to different thermal conditions. Furthermore, the present study also addresses the structural impact of cylindrical solid block placed at the center of annular domain.
Design/methodology/approach
The alternating direction implicit and successive over relaxation techniques are used in the current investigation to solve the coupled partial differential equations. Furthermore, estimation of average Nusselt number and total entropy generation involves integration and is achieved by Simpson and Trapezoidal’s rules, respectively. Mesh independence checks have been carried out to ensure the accuracy of numerical results.
Findings
Computations have been performed to analyze the simultaneous multiple influences, such as different thermal conditions, size and aspect ratio of the hot obstacle, Rayleigh number and nanoparticle shape on buoyancy-driven nanoliquid movement, heat dissipation, irreversibility distribution, cup-mixing temperature and performance evaluation criteria in an annular chamber. The computational results reveal that the nanoparticle shape and obstacle size produce conducive situation for increasing system’s thermal efficiency. Furthermore, utilization of nonspherical shaped nanoparticles enhances the heat transfer rate with minimum entropy generation in the enclosure. Also, greater performance evaluation criteria has been noticed for larger obstacle for both uniform and nonuniform heating.
Research limitations/implications
The current numerical investigation can be extended to further explore the thermal performance with different positions of solid obstacle, inclination angles, by applying Lorentz force, internal heat generation and so on numerically or experimentally.
Originality/value
A pioneering numerical investigation on the structural influence of hot solid block on the convective nanofluid flow, energy transport and entropy production in an annular space has been analyzed. The results in the present study are novel, related to various modern industrial applications. These results could be used as a firsthand information for the design engineers to obtain highly efficient thermal systems.
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Alina Steblyanskaya, Mingye Ai, Artem Denisov, Olga Efimova and Maksim Rybachuk
Understanding China's carbon dioxide (
Abstract
Purpose
Understanding China's carbon dioxide (
Design/methodology/approach
In this study using the input and output (IO) table's data for the selected years, the authors found the volume of
Findings
Results show that in the industries with a huge volume of
Originality/value
“Transport, storage, and postal services” and “Smelting and processing of metals” industries in China has the second place concerning emissions, but over the past period, emissions have been sufficiently reduced. “Construction” industry produces a lot of emissions, but this industry does not carry products characterized by large emissions from other industries. Authors can observe that Jiangsu produces a lot of
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Cheng-Wei Lin, Wan-Chi Jackie Hsu and Hui-Ju Su
The shipper selects a suitable shipping route and plans for a voyage in order to import and export cargo on the basis of published sailing schedules. The reliability of the…
Abstract
The shipper selects a suitable shipping route and plans for a voyage in order to import and export cargo on the basis of published sailing schedules. The reliability of the sailing schedule will influence the shipper’s logistics expense, which means that the logistics costs will depend on the reliability of schedules published by container shipping companies. Therefore, it is important to consider factors which can cause delays would for container ships sailing on sea routes. The reliability of published sailing schedules can be affected by a number of different factors. This study adopts the multi-criteria decision making (MCDM) method to estimate the importance of the delaying factors in a sailing schedule. In addition, the consistent fuzzy preference relations (CFPR) method is applied to identify the subjective importance (weights) of the delaying factors. The entropy weight method combined with the actual performance of the container shipping company are both used when estimating the objective importance (weights) of the delaying factors. According to the analysis results, the criteria can be divided into four quadrants with different management implications, which indicate that instructions for chase strategy, sailing schedule control, fleet allocation, transship operation arrangement and planning for ports in routes are often ignored by container shipping companies. Container shipping companies should consider adjusting their operational strategies, which would greatly improve their operational performance.
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Kingstone Nyakurukwa and Yudhvir Seetharam
Utilising a database that distinctly classifies firm-level ESG (environmental, social and governance) news sentiment as positive or negative, the authors examine the information…
Abstract
Purpose
Utilising a database that distinctly classifies firm-level ESG (environmental, social and governance) news sentiment as positive or negative, the authors examine the information flow between the two types of ESG news sentiment and stock returns for 20 companies listed on the Johannesburg Stock Exchange between 2015 and 2021.
Design/methodology/approach
The authors use Shannonian transfer entropy to examine whether information significantly flows from ESG news sentiment to stock returns and a modified event study analysis to establish how stock prices react to changes in the two types of ESG sentiment.
Findings
Using Shannonian transfer entropy, the authors find that for the majority of the companies studied, information flows from the positive ESG news sentiment to stock returns while only a minority of the companies exhibit significant information flow from negative ESG news sentiment to returns. Furthermore, the study’s findings show significantly positive (negative) abnormal returns on the event date and beyond for both upgrades and downgrades in positive ESG news sentiment.
Originality/value
This study is among the first in an African context to investigate the impact of ESG news sentiment on stock market returns at high frequencies.
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Truong Thi Thuy Duong and Nguyen Xuan Thao
The paper aims to propose a practical model for market segment selection and evaluation. The paper carries out a technique of order preference similarity to the ideal solution…
Abstract
Purpose
The paper aims to propose a practical model for market segment selection and evaluation. The paper carries out a technique of order preference similarity to the ideal solution (TOPSIS) approach to make an operation systematic dealing with multi-criteria decision- making problem.
Design/methodology/approach
Introducing a multi-criteria decision-making problem based on TOPSIS approach. A new entropy and new similarity measure under neutrosopic environment are proposed to evaluate the weights of criteria and the relative closeness coefficient in TOPSIS model.
Findings
The outcomes show that the TOPSIS model based on new entropy and similarity measure is effective for evaluation and selection market segment. Profitability, growth of the market, the likelihood of sustainable differential advantages are the most important insights of criteria.
Originality/value
This paper put forward an effective multi-criteria decision-making dealing with uncertain information.
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Entrepreneurs prioritise and act on purposeful endeavours instigated to actions by the visions of profits and benefits in the perceived opportunities. In the state of maximum…
Abstract
Purpose
Entrepreneurs prioritise and act on purposeful endeavours instigated to actions by the visions of profits and benefits in the perceived opportunities. In the state of maximum entropy, with disorderliness and disequilibrium, entrepreneurs select the preferred pathway, through the profit-sensing mechanism, with the best probability of success to bet on. Therefore, this paper unpacks the forces at work in the mechanism to explain how entrepreneurs respond to opportunity and interpret the signals to coalesce into organised actions.
Design/methodology/approach
This research is primarily a conceptual paper on entrepreneurial action and the mechanism leading to that action. It refers to thermodynamic principles and biological cases to explain the forces at work using mostly analogical comparisons and similarities.
Findings
This paper aims to present an alternative theoretical scaffolding for entrepreneurship researchers to explore non-rational entrepreneurial behaviours and actions in uncertain, unstable and non-equilibrium environments, thereby creating new and competing hypotheses under the backdrop of adaptive evolution and thermodynamics phenomena.
Research limitations/implications
The discussion featuring instinctively and naturally forming responses cannot fully explain the real entrepreneurial action as there is an element of free will and choices that are not discussed. While strategic choice and free-will shape decisions, they are preceded first by the attraction of the gradients and the biased motion in the direction of profit-attractant.
Practical implications
There remain essential links and issues not addressed in this “natural science”, constituting life science and physical science, oriented entrepreneurship research and exploration. Conceptualising opportunity-as-artefact and entrepreneurship as design, significant incidences of entrepreneurial actions can be explained by the presence of gradients stimulating entrepreneurial actions.
Social implications
This viewpoint of information causality in opportunity-as-artefact casts a new look at the venerable question of what causes entrepreneurial actions. Shane and Venkataraman brought into focus this conversation, initiating the conceptual definition of opportunity. To have entrepreneurship, entrepreneurial opportunities must come first. Figuring the signals arising from these opportunities and cueing entrepreneurs to action is the main focus of this study.
Originality/value
Considering the “mechanism” at work and the thermodynamical forces at play, the entrepreneurial design process appears to hold considerable promise for future research development.
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Khuram Ali Khan, Tasadduq Niaz, Đilda Pečarić and Josip Pečarić
In this work, we estimated the different entropies like Shannon entropy, Rényi divergences, Csiszár divergence by using Jensen’s type functionals. The Zipf’s–Mandelbrot law and…
Abstract
In this work, we estimated the different entropies like Shannon entropy, Rényi divergences, Csiszár divergence by using Jensen’s type functionals. The Zipf’s–Mandelbrot law and hybrid Zipf’s–Mandelbrot law are used to estimate the Shannon entropy. The Abel–Gontscharoff Green functions and Fink’s Identity are used to construct new inequalities and generalized them for
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