Showing papers by "University of Cyprus published in 1999"

Operations, Quality, and Profitability in the Provision of Banking Services

Abstract: We develop a framework for combining strategic benchmarking with efficiency benchmarking of the services offered by bank branches. In particular, a cascade of efficiency benchmarking models is developed guided by the service-profit chain. Three models-based on the nonparametric technique of Data Envelopment Analysis-are developed in order to implement the framework in a practical setting: (i) an operational efficiency model, (ii) a service quality efficiency model, and (iii) a profitability efficiency model. The use of the models is illustrated using data from the branches of a commercial bank. Empirical results indicate that we gain superior insights by analyzing simultaneously the design of operations together with the quality of the provided services and profitability, rather than by benchmarking these three dimensions separately. Relationships are also established between operational efficiency and profitability, and between operational efficiency and service quality.

Probability theory and statistical inference: econometric modelling with observational data

Abstract: This major textbook from a distinguished econometrician is intended for students taking introductory courses in probability theory and statistical inference. No prior knowledge other than a basic familiarity with descriptive statistics is assumed. The primary objective of this book is to establish the framework for the empirical modelling of observational (non-experimental) data. This framework known as 'Probabilistic Reduction' is formulated with a view to accommodating the peculiarities of observational (as opposed to experimental) data in a unifying and logically coherent way. Probability Theory and Statistical Inference differs from traditional textbooks in so far as it emphasizes concepts, ideas, notions and procedures which are appropriate for modelling observational data. Aimed at students at second-year undergraduate level and above studying econometrics and economics, this textbook will also be useful for students in other disciplines which make extensive use of observational data, including finance, biology, sociology and psychology and climatology.

The Nature of Board Nominating Committees and Their Role in Corporate Governance

Abstract: This study examines the association between the employment and composition of nominating committees with board and ownership characteristics. First, the results suggest that the likelihood of using a nominating committee is inversely related to the level of inside ownership and positively weakly, related to the independence, but not the number, of outside board members. Second, the percentage of insiders participating in the committee is positively related to inside ownership, and negatively related to proxies for outside director quality. Finally, outside directors are more likely to serve on the nominating committee the more outside directorships they hold, and the longer their tenure in the firm. The likelihood of insider committee membership rises with a director's equity investment, with board tenure, and with other committee memberships. Taken together, the results are consistent with nominating committees substituting inside ownership in controlling management, mostly improving board quality, and being staffed with independent, experienced, and knowledgable members.

Efficient Estimation Of Cointegrating Vectors and Testing for Causality in Vector Autoregressions

Abstract: This paper surveys various methods of estimating cointegrating vectors and testing for causality in cointegrated VARs, and draws some implications for the applied researcher. In a single equation framework a number of estimators can be used, whose asymptotic efficiency depends on the extent to which they correct for possible endogeneity and serial correlation of the regressors. Such estimates are asymptotically equivalent to those obtained using full system methods, even if the cointegration space is multidimensional, provided there are no cross‐equation restrictions. Using the triangular representation proposed by Phillips (1988), we show that one can employ in the context of an ECM a least squares estimator if weak exogeneity holds. If not, the alternatives are augmenting it by the leads of the regressors as in Stock and Watson (1993), or using the fully modified (FM) estimator due to Phillips and Hansen (1990). Other possibilities are the nonparametric approach developed by Bierens (1997), or the ARDL formulation due to Pesaran and Shin (1995). As for causality testing, we argue that it should be conducted within an ECM rather than a VAR formulation, as the limit distributions are much more likely to be standard in the former case. Alternatively, one can carry out statistical tests in the context of a VAR in levels estimated either by using the FM‐VAR method as in Phillips (1995), or by augmenting the VAR as in Toda and Yamamoto (1995). Other, computationally easier tests have been introduced by Dolado and Lutkepohl (1996) and Saikkonen and Lutkepohl (1996).

Parental attributions as predictors of involvement and influences on child achievement

Abstract: Background. This study, which was conducted in Cyprus, combines the theoretical framework of attribution research with that of parent involvement literature. Aim. Its aim was to investigate the role of parental attributions as predictors of parental involvement in their child's educational process and to examine the influence of both of these factors on the child's actual school achievement. Sample. The parents of 473 sixth grade students in 22 public elementary schools participated in the study. Data were also collected from students and their teachers. Method. Participating parents completed questionnaires regarding their attributions of their child's achievement and their own degree of involvement in his/her life. Results. It was found that parents who believed that their own role was important for their child's achievement tended to be more controlling and to be keener in developing the child's interests. Also, the parental attribution of the child's achievement to the child's own effort was positively related to the child's actual achievement results. Finally, it was found that the child's actual school achievement was directly related to the parental interest-developing behaviour, but it was not significantly related to the parental controlling behaviour. Conclusions. Through a structural equation model and a path analysis procedure, it was shown that a line of influence exists between parental attribution style, the type and degree of parental involvement and the child's actual academic achievement.

Student Teachers’ Beliefs about Creativity

Abstract: The purpose of the present study was to examine student teachers’ beliefs about creativity, creative outcomes, and factors related to creativity. Even though the importance of facilitating creativity in educational settings has been recognised, little attention has been paid to teachers’ beliefs about creativity. In this study, a questionnaire, designed to explore conceptualisations of creativity and issues related to it, was administered to 49 student teachers. The results indicated that student teachers tend to perceive creativity as a general ability primarily manifested in the context of artistic endeavours. Moreover, creative outcomes were thought to be novel but not necessarily appropriate or correct. These findings are discussed with respect to their educational implications.

Time-scale analysis of motor unit action potentials

Abstract: Quantitative analysis in clinical electromyography (EMG) is very desirable because it allows a more standardized, sensitive and specific evaluation of the neurophysiological findings, especially for the assessment of neuromuscular disorders. Following the recent development of computer-aided EMC equipment, different methodologies in the time domain and frequency domain have been followed for quantitative analysis. In this study, the usefulness of the wavelet transform (WT), that provides a linear time-scale representation is investigated, for describing motor unit action potential (MUAP) morphology. The motivation behind the use of the WT is that it provides localized statistical measures (the scalogram) for nonstationary signal analysis. The following four WTs were investigated in analyzing a total of 800 MUAPs recorded from 12 normal subjects, 15 subjects suffering with motor neuron disease, and 13 from myopathy: Daubechies with four and 20 coefficients, Chui (CH), and Battle-Lemarie (BL). The results are summarized as follows: 1) most of the energy of the MUAP signal is distributed among a small number of well-localized (in time) WT coefficients in the region of the main spike, 2) for MUAP signals, the authors look to the low-frequency coefficients for capturing the average waveshape of the MUAP signal over long durations, and the authors look to the high-frequency coefficients for locating MUAP spike changes, 3) the Daubechies 4 wavelet, is effective in tracking the transient components of the MUAP signal, 4) the linear spline CH (semiorthogonal) wavelet provides the best MUAP signal approximation by capturing most of the energy in the lowest resolution approximation coefficients, and 5) neural network BY (DY) of Daubechies 4 and BL WT coefficients was in the region of 66%, whereas BY for the empirically determined time domain feature set was 78%. In conclusion, wavelet analysis provides a new way in describing MUAP morphology in the time-frequency plane. This method allows for the fast extraction of localized frequency components, which when combined with time domain analysis into a modular neural network decision support system enhances further the BY to 82.5% aiding the neurophysiologist in the early and accurate diagnosis of neuromuscular disorders.

Mobile agents for WWW distributed database access

Abstract: The popularity of the Web as a universal access mechanism for network information has created the need for developing Web based DBMS client/server applications. However, the current commercial applet based methodologies for accessing database systems offer limited flexibility, scalability and robustness. We propose a new framework for Web based distributed access to database systems based on Java based mobile agents. The framework supports lightweight, portable and autonomous clients as well as operation on slow or expensive networks. The implementation of the framework shows that its performance is comparable to, and in some cases outperforms, the current approach. In fact, in wireless and dial-up environments and for average size transactions, a client/agent/server adaptation of the framework provides a performance improvement of approximately a factor of ten. For the fixed network, the gains are about 40% and 30% respectively.

Bulgarian consumers’ perceptions of products made in Asia Pacific

Abstract: Reports the findings of a study conducted among 135 Bulgarian consumers, examining their perceptions of products from five Asian Pacific countries. The most common source of information for evaluating these products was experiential knowledge, coupled with opinions from friends. Among the country origins investigated, products made in Japan appeared to be liked most, while Indian products received the most negative comments. Japanese products were also ranked first in terms of overall assessment, followed by products from Hong Kong, Singapore, Indonesia, and India. In general, consumer demographics did not play a serious differentiating role in the evaluation of products from these countries. With respect to specific product dimensions, Japanese goods were also rated more highly than those of other countries, the only exception being on price and credit facilities. Finally, in assessing particular categories of products made in Asia Pacific, Japan again received the highest ratings. Some conclusions are drawn from the study findings, as well as managerial implications.

The method of fundamental solutions for heat conduction in layered materials

Abstract: In this paper, we investigate the application of the Method of Fundamental Solutions (MFS) to two-dimensional problems of steady-state heat conduction in isotropic and anisotropic bimaterials. Two approaches are used: a domain decomposition technique and a single-domain approach in which modified fundamental solutions are employed. The modified fundamental solutions satisfy the interface continuity conditions automatically for planar interfaces. The two approaches are tested and compared on several test problems and their relative merits and disadvantages discussed. Finally, we use the domain decomposition approach to investigate bimaterial problems where the interface is non-planar and the modified fundamental solutions cannot be used. Copyright © 1999 John Wiley & Sons, Ltd.

A poisson-boltzmann study of charge insertion in an enzyme active site : the effect of dielectric relaxation

Abstract: Continuum solvent models are playing an increasing role in the study of aqueous solutions, particularly those involving protein solutes. To estimate the magnitude of dielectric relaxation and clarify the microscopic meaning of the protein dielectric constant, charge insertion in the active site of the enzyme aspartyl-tRNA synthetase (AspRS) is analyzed using finite-difference Poisson−Boltzmann calculations. The insertion process is a simplified model that mimics qualitatively the mutation of substrate Asp into Asn, studied earlier by free energy simulations. A two-step insertion path gives the relaxation and nonrelaxation (“static”) free energy components separately. The assumption of linear response leads to a linear relation between the two components, connecting the explicit structural differences between reactant and product structures with the relaxation free energy calculated from either structure. This relation is verified here only if protein dielectric constants of 1 and 4−8 are used for the stat...

High-performance computing in finance: the last 10 years and the next

Abstract: Almost two decades ago supercomputers and massively parallel computers promised to revolutionize the landscape of large-scale computing and provide breakthrough solutions in several application domains. Massively parallel processors achieve today terraFLOPS performance – trillion floating point operations per second – and they deliver on their promise. However, the anticipated breakthroughs in application domains have been more subtle and gradual. They came about as a result of combined efforts with novel modeling techniques, algorithmic developments based on innovative mathematical theories, and the use of high-performance computers that vary from top-range workstations, to distributed networks of heterogeneous processors, and to massively parallel computers. An application that benefited substantially from high-performance computing is that of finance and financial planning. The advent of supercomputing coincided with the so-called “age of the quants” in Wall Street, i.e., the mathematization of problems in finance and the strong reliance of financial managers on quantitative analysts. These scientists, aided by mathematical models and computer simulations, aim at a better understanding of the peculiarities of the financial markets and the development of models that deal proactively with the uncertainties prevalent in these markets. In this paper we give a modest synthesis of the developments of high-performance computing in finance. We focus on three major developments: (1) The use of Monte Carlo simulation methods for security pricing and Value-at-Risk (VaR) calculations; (2) the development of integrated financial product management tools and practices – also known as integrative risks management or enterprise-wide risk management, and (3) financial innovation and the computer-aided design of financial products.

The method of fundamental solutions for axisymmetric potential problems

Abstract: In this paper, we investigate the application of the Method of Fundamental Solutions (MFS) to two classes of axisymmetric potential problems. In the first, the boundary conditions as well as the domain of the problem, are axisymmetric, and in the second, the boundary conditions are arbitrary. In both cases, the fundamental solutions of the governing equations and their normal derivatives, which are required in the formulation of the MFS, can be expressed in terms of complete elliptic integrals. The method is tested on several axisymmetric problems from the literature and is also applied to an axisymmetric free boundary problem. Copyright © 1999 John Wiley & Sons, Ltd.

The Local Bootstrap for Periodogram Statistics

Abstract: A bootstrap procedure for the periodogram of a weakly dependent stationary sequence is proposed. The method works by locally resampling the periodogram ordinates and does not require estimation of the spectral density and of frequency domain residuals obtained by means of initial smoothing. Asymptotic properties of the proposed bootstrap procedure are studied and consistency is proved for interesting classes of statistics including ratio statistics, kernel estimates of the spectral density and parameter estimates. Some practical aspects concerning the implementation of the method are also discussed.

Real options: A primer

Abstract: This paper serves to introduce the basic ideas and valuation principles for corporate real options, and basic concepts related to growth options, competition and strategy. It first uses an example to motivate the discussion of various real options and presents practical principles for valuing several common real options, such as the options to defer investment, expand capacity, abandon the project, or switch uses. It then presents a conceptual discussion of growth options, competition and strategy, proposing strategic questions and a new project classification scheme as a practical aid for option-based analysis. Finally, it discusses various applications and notes areas for future research.

National Identity and Consciousness in Everyday Life: Towards a Sociology of Knowledge of Greek‐Cypriot Nationalism

Abstract: . The concomitants of nationalism and ethnic separation upon Greek-Cypriot consciousness are examined from the perspective of the sociology of knowledge and phenomenological analysis. The focus is upon the perception of Self and the social construction of Greek-Cypriot identity. The issue is examined in light of the ideological contest between Greek nationalism and Cypriotism. Whereas Greek nationalism sets the parameters of ideological orthodoxy and is the dominant force on the level of political consciousness, Cypriotism predominates on the level of everyday consciousness. One key consequence of the ideological class between Greek-Cypriot nationalism and Cypriotism is a structural ambivalence that characterises Greek-Cypriot perceptions of Self and Other. This ambivalence has been one of the main obstacles to the legitimation of an independent Cypriot polity and continues to impede the functional coexistence of the Greek-Cypriot and Turkish-Cypriot people on the island.

Preference Heterogeneity and the Rank of Demand Systems

Abstract: This article examines the effect of preference heterogeneity on nonparametric and parametric tests of the rank of demand systems. Using samples of households drawn from the U.K. Family Expenditure Survey, we find that preference heterogeneity increases the rank of demand systems. When the effects of household characteristics on demand are removed by semiparametric techniques, a rank-3 demand system appears to be an adequate empirical specification for all samples.

Achievement Attributions of Sixth Grade Children and Their Parents

Abstract: The present study examines the achievement attributions of Greek Cypriot students and their parents. Its aim was to investigate the role of parental and child achievement attributions as parameters of the child's actual school achievement and to examine the existing differences between attributions made by children and their parents. A total of 477 Sixth Grade Greek Cypriot students and their parents participated in the study. A structural equation model was constructed and its ability to fit the data was tested. It was found that child attributions of achievement to effort, ability and other internal factors are positively related to actual achievement, while attributions to luck and external factors are negatively related to achievement. This is in line with earlier findings. Parental and child attributions are not strongly and reliably related. Thus, claims that children develop their own attributions on the basis of their parents’ attributions were not supported. Gender differences were found...

Non-expected Utility, Saving, and Portfolios

Abstract: Existing findings suggest that standard, frictionless, expected-utility models have difficulty accounting for average and for median holdings of wealth and of risky assets, partly as a result of the largely unexplained limited proportion of stockholders among households. We analyze life-cycle wealth accumulation and portfolio choice under career uncertainty and quantifiable departures from expected utility maximization. Our specification nests expected utility and three types of non-expected utility: (i) Kreps-Porteus preferences that disentangle risk aversion from elasticity of substitution, (ii) Yaari's Dual Theory of Choice, and (iii) Quiggin's Rank-dependent Utility. Specifications (ii) and (iii) exhibit "first-order" risk aversion and kinked indifference curves. Solution of such models under multiple sources of risk presents conceptual and computational difficulties. We introduce a notion of equilibrium and a computational algorithm appropriate for such setups. Computed wealth and stockholding, based on calibrated income processes for three education categories, are compared to the 1992 Survey of Consumer Finances. Rank-dependent utility enhances the importance of precautionary effects. Contrary to priors in the literature, solutions are not typically at kinks; neither kinks nor actual solutions involve zero stockholding when income risk is recognized; and yet predictions about average wealth and risky assets tend to improve for all education categories. Mere disentangling of risk aversion from elasticity has small effects, while dual theory predictions are farther from the data and the signs of precautionary effects are reversed.

Preferred Arguments are Harder to Compute than Stable Extension

Abstract: Based on an abstract framework for nonmonotonic reasoning, Bondarenko et at have extended the logic programming semantics of admissible and preferred arguments to other nonmonotonic formalisms such as circumscription, autoepisternic logic and default logic Although the new semantics have been tacitly assumed to mitigate the computational problems of nonmonotonic reasoning under the standard semantics of stable extensions, it seems questionable whether they improve the worst-case behaviour As a matter of fact, we show that credulous reasoning under the new semantics in propositional logic programming and prepositional default logic has the same computational complexity as under the standard semantics Furthermore, sceptical reasoning under the admissibility semantics is easier - since it is trivialised to monotonic reasoning Finally, sceptical reasoning under the preferability semantics is harder than under the standard semantics

Scenario modeling for the management of international bond portfolios

Abstract: We address the problem of portfolio management in the international bond markets.Interest rate risk in the local market, exchange rate volatility across markets, and decisionsfor hedging currency risk are integral parts of this problem. The paper develops a stochasticprogramming optimization model for integrating these decisions in a common framework.Monte Carlo simulation procedures, calibrated using historical observations of volatilityand correlation data, generate jointly scenarios of interest and exchange rates. The decisionmaker's risk tolerance is incorporated through a utility function, and additional views onmarket outlook can also be incorporated in the form of user specified scenarios. The modelprescribes optimal asset allocation among the different markets and determines bond‐pickingdecisions and appropriate hedging ratios. Therefore, several interrelated decisions are castin a common framework, while in the past these issues were addressed separately. Empiricalresults illustrate the efficacy of the simulation models in capturing the uncertainties of theSalomon Brothers international bond market index.