Conceptual and critical analysis of the Implicit Leadership Theory

The purpose of this essay is to present a conceptual and critical analysis of the Implicit Leadership Theory (ILT). The objectives are: 1) explaining the main concepts of the ILT; 2) explaining the main processes of the ILT; 3) identifying constructivist assumptions in the ILT; 4) identifying constructionist assumptions in the ILT, and 5) analyzing critically theoretical assumptions of the ILT. At analyzing constructivism and constructionism assumptions in the ILP, the constructivist leadership and the constructionist leadership are described. At the end, a critical analysis of TLP ILT and conclusions are presented.

Synthetic portfolio for event studies: Estimating the effects of volatility call auctions

We propose a method denoted as synthetic portfolio for event studies in market microstructure that is particularly interesting to use with high frequency data and thinly traded markets. The method is based on Synthetic Control Method and provides a robust data driven method to build a counterfactual for evaluating the effects of the volatility call auctions. We find that SMC could be used if the loss function is defined as the difference between the returns of the asset and the returns of a synthetic portfolio. We apply SCM to test the performance of the volatility call auction as a circuit breaker in the context of an event study. We find that for Colombian Stock Market securities, the asynchronicity of intraday data reduces the analysis to a selected group of stocks, however it is possible to build a tracking portfolio. The realized volatility increases after the auction, indicating that the mechanism is not enhancing the price discovery process.