Showing papers by "European Business School London published in 2016"

Stock returns and future tense language in 10-K reports

Abstract: This paper shows that firms talking less about the future in their annual reports generate positive abnormal returns of about 5% annually. I measure how much companies talk about the future in their annual 10-K reports by the frequency of the verbs will, shall, and going to. The evidence favors a risk-based interpretation: firms that use less future tense in their report offer higher returns since they are riskier. These results are consistent with finance theories stating that investors need to be rewarded for holding stocks of firms that put less information about the future in the marketplace.

Customer satisfaction and expenditure behaviour in musical festivals: The optimus primavera sound case study

Abstract: We evaluate the determinants of the two different types of tourists’ expenditure behaviour at a musical festival: the expenditure per day in the city of the event and expenses in the enclosure during the event. We prove that the domestic tourists who live out of the town of the event and foreigners who came purposely for the event spend more in the enclosure. Comparing the expenditures in the city, foreigners spend more in town than the nationals who came from out of the city. Four distinct factors of satisfaction emerged in the application of the factorial analysis: organization of the festival, kind of music, conditions of the enclosure and accessibility to the venue. It was also found that the most satisfied with the event also have a higher propensity to spend more on the enclosure and in the city. This research reveals an important framework for event managers and for politicians. The results of this study will be important for the promotion and dissemination by the event organization to the extent t...

Leveraging Technology for Refugee Integration: How Can We Help?

Abstract: Spurred by the military conflicts, refugees’ crisis has swept Europe by surprise. With a challenge of integrating refugees into hosting societies comes the question about the role that ICTs could play in the ongoing integration efforts. Indeed, unprecedented reliance of refugees on technology, especially smartphones, is an important distinction of the current refugees’ crisis. ICT may support integrative efforts undertaken by local authorities and other stakeholders. Nonetheless, the question how ICTs can be applied to support refugees and how detrimental effects for them and the hosting societies can be mitigated is difficult to answer. The panel discussion will be structured around four areas: (1) communication with the government; (2) social connectedness; (3) participation in educational programs; and (4) integration and social inclusion. The goal is to present the chances and challenges of ICT use by refugees on an operational level, and how ICT systems should be designed and culturally adapted.

Understanding technologically-induced customer services in the Nigerian banking sector: the internet as a post-modern phenomenon

Abstract: Any discussion on technological adoption and use produces a diverse range views from both academics and practitioners. This has prompted some questions on its nature and understanding in developing countries like Nigeria. Assessing modernist and post-modernist perspectives through phenomenological hermeneutics and a capability-based model, this study examines the level of technologically induced customer services in the banking services sector on salient issues in sub-Saharan Africa. Drawing on a specific hermeneutical approach and the origins of modernist and post-modernist perspectives in developing societies, this paper examines this issue from a Nigerian perspective. A contemporary sub-Saharan e-business model is proposed. Results indicate that customer services in technologically-induced environments are increasingly becoming adopted in the context of financial services. As an embryonic mode of transaction, several variables are reported and some of these are hampering the development and adoption of this medium in Nigeria compared to those of developed countries.

The cause of higher economic growth: assessing the long-term and short-term relationships between economic growth and government expenditure

Abstract: This study examines the cause of higher (5% or more) economic growth rates in countries around the world over the past 35 years. It explores the long- and short-term relationships between GDP and government expenditures in these countries. A panel data set of 60 countries over the period from 1976 to 2010 is deployed to implement pooled mean group estimation. Countries are divided into three economic growth rate groups: high, middle, and low. Panel-based/error correction models are used to estimate long-term equilibrium relationships and short-term dynamics between government expenditures and GDP growth rates. Results indicate that the hypothesis of a common long-term elasticity and a short-term dynamic relationship between GDP growth rates and government expenditures cannot be rejected for high group countries, whereas for middle group countries this is true only for the long term, not for the short term. No long-term or short-term relationship between these two variables exists for low-growth-rate countries.

Financial History Databases: Old Data, Old Issues, New Insights?

Abstract: In this chapter, we draw attention to the potential flaws historical financial data sets might embed. The way in which historical financial data have been gathered and constructed is even more important than for recent data. For data users, overlooking these potential flaws can affect the reliability of the underlying analysis. For data collectors, considering them can lead to data of better quality. To illustrate, we first discuss the general issues that may affect stock and bond data. Next, we examine in more detail the data items needed to construct equity and bond market indices as well as the consequences of not having these items. An appendix provides an overview of the existing cross-sectional historical datasets.

The Asymmetric Conditional Beta-Return Relations of REITs

Abstract: The traditional modern portfolio model posits that return is a function of beta—the stock’s sensitivity to market movements. However, much research suggests that on an empirical basis this expectation does not hold. Pettengill, Sundaram and Mathur (1995) [PSM] suggest that the problem is that expected risk-return relationships are positive, but actual outcomes can vary. Thus we implement the PSM procedure to determine if we can obtain better explanatory ability for REIT returns relative to beta. Using PSM’s suggested technique, we find evidence that REIT stocks with higher betas have more positive returns when the realized market returns exceed risk-free rates and more negative returns when the realized market returns fall below risk-free rates. Furthermore, we form REIT portfolios based on betas and find that similar results hold for portfolio level: REIT portfolios with higher betas have more positive returns when the realized market returns exceed risk-free rates and more negative returns when the realized market returns fall below risk-free rates.We also examine beta relative to up and downside risk as suggested in Harlow and Rao (1989) [HR]. By using HR conditional beta approach, we find that REIT investors seem to view losses differently than gains. Our study is to determine if we can validate the positive risk-return trade-off predicted by CAPM and to show that a significant and positive systematic beta-return relation exists in both static and conditional CAPM model settings. We believe that our research effort is the first to incorporate both static beta estimation and asymmetric beta estimation to show a significantly positive risk-return trade-off in the industry of real estate investment trusts. Using HR generalized Mean-Lower Partial Moment Asset Pricing Model, we confirm that REIT stocks with higher downside betas have higher average returns, but upside betas are insignificant in the beta-return relation for REITs. We find similar results for portfolio level as well. These results on the downside and upside betas are consistent with the findings on real estate market index returns in Cheng (2005).

Computer-based stereotype threats as a new theoretical perspective on is avoidance by elderly people

Abstract: Despite constituting one fifth of the population in Europe, elderly people (65+) are the least active group with respect to using the internet and computer-based services. Toward shedding light on reasons for this discrepancy, we adopt in this paper the theory of stereotype threat as a theoretical lens. Stereotype threat theory posits the perception of a social identity threat such as being old and cognitively slow, which in turn results in anxiety, low performance, and avoidance behavior when exposed to a stereotype-relevant situation. Psychological research has resulted in numerous studies that provided evidence of perceived aging stereotypes and their implications on performance, anxiety, and avoidance. Within this research in progress, we transfer this knowledge to the phenomenon of information system (IS) avoidance by elderly people and propose a research model and multimethodological experimental design in order to investigate the relationship between perceived computer-based stereotype threat by elderly users, computer anxiety, IS performance, and IS avoidance behavior.

Opportunities and Threats for E-Health on an Ageing Society

Abstract: E-health includes tools for health professionals and for patients (personalized health systems), enabling the promotion of patient’s autonomy (raising the involvement of patients and responsibility for their own health). This autonomy, associated with a communication system capable of providing, timely, specific information to the patients, can be a possible way to reduce costs in the health sector. This chapter is driven by the following evidence: the population is ageing (in 2013, life expectancy on average across OECD countries exceeded 80,5 years); information and communication technologies (ICTs) have an increasingly key role on health sector (for example, 60% of the countries, that respond to the 2009 Global Survey on e-health conducted by the World Health Organization (WHO), offered some form of teleradiology; and near 30% of those countries use some form of patient monitoring by mobile technology); the weight of health expenditures grew (despite the deceleration since 2009, the weight of health expenditure on GDP, on OECD countries, increased from 7,8%, in 2000, to 8,9% in 2013). We intend to correlate these three dimensions by demonstrating that e-health could help controlling the expenditures with the health of the elders and improve their quality of life. However, there are many obstacles for good results in the short term. The use of ICTs in health can be organized into three axes: e-health; health information systems; and, media and communication in health. The growing computerization of clinical practice places important challenges to practitioners and health institutions, but it also presents significant opportunities. The objective of the use of the ICTs for health professionals is not to reduce human contact in the provision of care, but mainly to improve the medical procedure to create the conditions so that patients can have a better quality of life, staying independent and active. Also, the development of the Internet can be considered as an opportunity and, simultaneously, a challenge for health professionals. Patients have easy access to a large volume of health information. In addition, Internet allows the exchange of experiences and views between the patients. The great challenge for patients is to select and decode the information on the Internet. The increase in the elderly population is forcing the healthcare market to offer senior-friendly products and services related to long-term care, health and wellbeing. ICTs and specifically e-health have notables’ technological advances covering health services such as teleconsultation, telemonitoring, telecare, e-prescription and e-referral. These advances allow to support the ageing and ill population in maintaining independence and mobility for as long as possible. Despite the evolution of ICTs, the senior population is still info-excluded in many ways. This may inhibit them to fully extract its advantages, restricting the results of the use of e-health tools. Opportunities and Threats for E-Health on an Ageing Society

Brand Management Challenges in the Context of Recession

Abstract: Purpose: The research carried out aimed to study the main challenges being faced by companies in the process of managing their brands in the context of recession, involving the analysis of impacts on the professional profile of those responsible for the brands and on the approach to and choice of brand strategies. Methodology: The methodology is based on a qualitative approach focused on the perceptions and practices of brand management from the perspective of marketing executives from the middle and upper management of Unicer Bebidas, S.A., involving the analysis of a case study, namely “Agua das Pedras”, through in-depth interviews and related documents. Findings: This research study enabled the identification of: (i) the set of skills critical for a more effective brand management (resilience is particularly relevant in the focused context); (ii) important requirements for the strategic planning of the brand; (iii) fundamental strategies to leverage brand value; and (iv) new roles of the brand managers. Research limitations: Results need to be replicated and confirmed in different companies, from distinctive economic sectors and it would be beneficial to integrate these results with the view of the main marketing and brand management consulting companies and carry out a comparative analysis about the subject under research. Originality/value: The paper emphasizes the importance of focus in brand management, especially in a context of recession, as well as the prominent need to conceptualize the brand in a global market. A contribution is made in order to identify and analyse the critical skills that brand managers need to strengthen in times of uncertainty and which dimensions of co-creation value and brand management are more relevant in the focused context. Keywords : Context of recession, brand management strategies, brand management, brand, resilience [PT] Titulo: "Desafios da gestao da marca num contexto de recessao" Resumo Objetivos: A pesquisa realizada teve como objetivo estudar os principais desafios enfrentados pelas empresas no processo de gestao de suas marcas no contexto de recessao, envolvendo a analise de impactos no perfil profissional dos responsaveis pelas marcas e na abordagem e escolha de estrategias de marca. Metodologia: A metodologia baseia-se em uma abordagem qualitativa, focada nas percepcoes e praticas de gestao de marcas na perspectiva de executivos de marketing da alta e media gerencia da Unicer Bebidas, SA, envolvendo a analise de um estudo de caso, a saber, “Agua das Pedras ”, Por meio de entrevistas detalhadas e documentos relacionados. Resultados: Este estudo de pesquisa permitiu identificar: (i) o conjunto de habilidades criticas para uma gestao de marca mais eficaz (a resiliencia e particularmente relevante no contexto focalizado); (ii) requisitos importantes para o planejamento estrategico da marca; (iii) estrategias fundamentais para alavancar o valor da marca; e (iv) novos papeis dos gerentes de marca. Limitacoes: os resultados precisam ser replicados e confirmados em diferentes empresas, de setores economicos distintos, e seria benefico integrar esses resultados a visao das principais empresas de consultoria de marketing e gestao de marca e realizar uma analise comparativa sobre o assunto pesquisado . Originalidade/valor: O artigo enfatiza a importância do foco no gerenciamento da marca, especialmente em um contexto de recessao, bem como a necessidade importante de conceituar a marca em um mercado global. E feita uma contribuicao para identificar e analisar as habilidades criticas que os gerentes de marca precisam fortalecer em tempos de incerteza e quais dimensoes de valor de co-criacao e gerenciamento de marca sao mais relevantes no contexto focado. Palavras-chave: Contexto da recessao, estrategias de gerenciamento de marca, gerenciamento de marca, marca, resiliencia.

A Sorry State? Financial Regulation in an Algorithmic Age

Abstract: In this paper, we appraise financial regulation in the age of algorithmic trading. In contemporary financial markets, trading practices performed by human beings within socialized structures are in...

Parameter Estimation and Inference with Spatial Lags and Cointegration

Abstract: We study dynamic panel data models where the long run outcome for a particular cross-section is affected by a weighted average of the outcomes in the other cross-sections. We show that imposing such a structure implies several cointegrating relationships that are nonlinear in the coefficients to be estimated. Assuming that the weights are exogenously given, we extend the dynamic ordinary least squares methodology and provide a dynamic two-stage least squares estimator. We derive the large sample properties of our proposed estimator and investigate its small sample distribution in a simulation study. Then our methodology is applied to US financial market data, which consist of credit default swap spreads, firm specific and industry data. A "closeness" measure for firms is based on input-output matrices. Our estimates show that this particular form of spatial correlation of credit default spreads is substantial and highly significant.