Case study - balanced scorecard targets

Dissertação de Mestrado, Finanças Empresariais, Faculdade de Economia, Universidade do Algarve, 2014

Agency theory and the family business

The conceptual domain of agency theory is one of the dominant organisational theory perspectives applied in current family business research (Chrisman et al., 2010). According to agency theory (Jensen and Meckling, 1976), agency costs generally arise due to individuals’ selfinterest and decision making based on rational thinking and oriented toward own preferences. With more people involved in decision making, such as through the separation of ownership and management, agency costs occur due to different preferences and information asymmetries between the owner (principal) and the employed management (agent) (Jensen and Meckling, 1976). In other words, agents take decisions based on their individual preferences (for example, short term, financial gains) instead of the owners’ preferences (for example, long term, sustainable development).

Buyer information and brand Choice behavior in markets with asymmetries

This thesis Entitled Buyer information and brand choice behaviour in markets with asymmetries.The period of transition set in by globalization and liberalization has ensued a onsiderable degree of homogeneity with western societies with respect to quantity and quality of goods and services.The study is aimed at finding out how the buyers adapt to the prevalent complex and dynamic market configuration by taking an archetypical situation of information gathering and brand- choice decision of select household consumer durables.The study was based on a set of 301 sample respondents who were either first time purchasers or repeat purchasers for household use, of the items under study in the sample area comprising of rural, urban and semi-urban areas. Data were collected using interview schedule and analysis of the same was done with standard statistical computer programs.Buyer confidence as perceived by buyers with respect to information acquisition and brand-choice represents the felt competence to effectively function in the market.In general, lower levels of education, income and occupation showed lower levels of search. The oldest were also low searchers. The repeat purchasers of the product searched less than the first purchasers. The most important source of information was word of mouth or information from others followed by television advertisements. The least important source of information was billboards, displays and similar forms of advertisements.The second factor is characterized by items representing ‘social attributes’ like, use by many others, use by peers, recommendation by significant others and reputation of the brand. The third factor represents ‘susceptibility to incentives and promotions’.

Do left and right asymmetries of hemispheric preference interact with attention to predict local and global performance in applied tasks?

Many cognitive neuroscience studies show that the ability to attend to and identify global or local information is lateralised between the two hemispheres in the human brain; the left hemisphere is biased towards the local level, whereas the right hemisphere is biased towards the global level. Results of two studies show attention-focused people with a right ear preference (biased towards the left hemisphere) are better at local tasks, whereas people with a left ear preference (biased towards the right hemisphere) are better at more global tasks. In a third study we determined if right hemisphere-biased followers who attend to global stimuli are likely to have a stronger relationship between attention and globally based supervisor ratings of performance. Results provide evidence in support of this hypothesis. Our research supports our model and suggests that the interaction between attention and lateral preference is an important and novel predictor of work-related outcomes.

Modeling Asymmetries in Financial Data with Multiplicative Error Models

This thesis addresses modeling of financial time series, especially stock market returns and daily price ranges. Modeling data of this kind can be approached with so-called multiplicative error models (MEM). These models nest several well known time series models such as GARCH, ACD and CARR models. They are able to capture many well established features of financial time series including volatility clustering and leptokurtosis. In contrast to these phenomena, different kinds of asymmetries have received relatively little attention in the existing literature. In this thesis asymmetries arise from various sources. They are observed in both conditional and unconditional distributions, for variables with non-negative values and for variables that have values on the real line. In the multivariate context asymmetries can be observed in the marginal distributions as well as in the relationships of the variables modeled. New methods for all these cases are proposed. Chapter 2 considers GARCH models and modeling of returns of two stock market indices. The chapter introduces the so-called generalized hyperbolic (GH) GARCH model to account for asymmetries in both conditional and unconditional distribution. In particular, two special cases of the GARCH-GH model which describe the data most accurately are proposed. They are found to improve the fit of the model when compared to symmetric GARCH models. The advantages of accounting for asymmetries are also observed through Value-at-Risk applications. Both theoretical and empirical contributions are provided in Chapter 3 of the thesis. In this chapter the so-called mixture conditional autoregressive range (MCARR) model is introduced, examined and applied to daily price ranges of the Hang Seng Index. The conditions for the strict and weak stationarity of the model as well as an expression for the autocorrelation function are obtained by writing the MCARR model as a first order autoregressive process with random coefficients. The chapter also introduces inverse gamma (IG) distribution to CARR models. The advantages of CARR-IG and MCARR-IG specifications over conventional CARR models are found in the empirical application both in- and out-of-sample. Chapter 4 discusses the simultaneous modeling of absolute returns and daily price ranges. In this part of the thesis a vector multiplicative error model (VMEM) with asymmetric Gumbel copula is found to provide substantial benefits over the existing VMEM models based on elliptical copulas. The proposed specification is able to capture the highly asymmetric dependence of the modeled variables thereby improving the performance of the model considerably. The economic significance of the results obtained is established when the information content of the volatility forecasts derived is examined.

Essays on the Linkages Between Financial Markets, and Risk Asymmetries (summary section only)

During the last few decades there have been far going financial market deregulation, technical development, advances in information technology, and standardization of legislation between countries. As a result, one can expect that financial markets have grown more interlinked. The proper understanding of the cross-market linkages has implications for investment and risk management, diversification, asset pricing, and regulation. The purpose of this research is to assess the degree of price, return, and volatility linkages between both geographic markets and asset categories within one country, Finland. Another purpose is to analyze risk asymmetries, i.e., the tendency of equity risk to be higher after negative events than after positive events of equal magnitude. The analysis is conducted both with respect to total risk (volatility), and systematic risk (beta). The thesis consists of an introductory part and four essays. The first essay studies to which extent international stock prices comove. The degree of comovements is low, indicating benefits from international diversification. The second essay examines the degree to which the Finnish market is linked to the “world market”. The total risk is divided into two parts, one relating to world factors, and one relating to domestic factors. The impact of world factors has increased over time. After 1993, when foreign investors were allowed to freely invest in Finnish assets, the risk level has been higher than previously. This was also the case during the economic recession in the beginning of the 1990’s. The third essay focuses on the stock, bond, and money markets in Finland. According to a trading model, the degree of volatility linkages should be strong. However, the results contradict this. The linkages are surprisingly weak, even negative. The stock market is the most independent, while the money market is affected by events on the two other markets. The fourth essay concentrates on volatility and beta asymmetries. Contrary to many international studies there are only few cases of risk asymmetries. When they occur, they tend to be driven by the market-wide component rather than the portfolio specific element.

Information Sharing in Banking: A Collusive Device?

We show that information sharing among banks may serve as a collusive device. An informational sharing agreement is an a-priori commitment to reduce informational asymmetries between banks in future lending. Hence, information sharing tends to increase the intensity of competition in future periods and, thus, reduces the value of informational rents in current competition. We contribute to the existing literature by emphasizing that a reduction in informational rents will also reduce the intensity of competition in the current period, thereby reducing competitive pressure in current credit markets. We provide a large class of economic environments, where a ban on information sharing would be strictly welfare-enhancing.

Manual asymmetries in the preparation and control of goal-directed movements

The primary purpose of this experiment was to determine if left hand reaction time advantages in manual aiming result from a right hemisphere attentional advantage or an early right hemisphere role in movement preparation. Right-handed participants were required to either make rapid goal-directed movements to small targets or simply lift their hand upon target illumination. The amount of advance information about the target for a particular trial was manipulated by precuing a subset of potential targets prior to the reaction time interval. When participants were required to make aiming movements to targets in left space, the left hand enjoyed a reaction advantage that was not present for aiming in right space: or simple finger lifts. This advantage was independent of the amount or type of advance information provided by the precue. This finding supports the movement planning hypothesis. With respect to movement execution, participants completed their aiming movements more quickly when aiming with their right hand, particularly in right space. This right hand advantage in right space was due to the time required to decelerate the movement and to make feedback-based adjustments late in the movement trajectory. (C) 2001 Academic Press.

Hemispheric asymmetries in recognition memory for negative and neutral words

Federmeier and Benjamin (2005) have suggested that semantic encoding for verbal information in the right hemisphere can be more effective when memory demands are higher. However, other studies (Kanske & Kotz, 2007) also suggest that visual word recognition differ in function of emotional valence. In this context, the present study was designed to evaluate the effects of retention level upon recognition memory processes for negative and neutral words. Sample consisted of 15 right-handed undergraduate portuguese students with normal or corrected to normal vision. Portuguese concrete negative and neutral words were selected in accordance to known linguistic capabilities of the right hemisphere. The participants were submitted to a visual half-field word presentation using a continuous recognition memory paradigm. Eye movements were continuously monitored with a Tobii T60 eye-tracker that showed no significant differences in fixations to negative and neutral words. Reaction times in word recognition suggest an overall advantage of negative words in comparison to the neutral words. Further analysis showed faster responses for negative words than for neutral words when were recognised at longer retention intervals for left-hemisphere encoding. Electrophysiological data through event related potentials revealed larger P2 amplitude over centro-posterior electrode sites for words studied in the left hemifield suggesting a priming effect for right-hemisphere encoding. Overall data suggest different hemispheric memory strategies for the semantic encoding of negative and neutral words.

Inequality, intergenerational mobility and redistributive policies under endogenous information

This paper presents a dynamic model to study how different levels of information about the root determinants of wealth (luck versus effort) can impact inequality and intergenerational mobility through societal beliefs, individual choices and redistributive policies. To my knowledge, the model presented is the first dynamicmodel in which skills are stochastic and both beliefs and voted redistribution are determined endogenously. The model is able to explain a number of empirical facts. Large empirical evidence shows that the difference in the political support for redistribution appears to reflect differences in the social perceptions regarding the determinants of individual wealth and the underlying sources of income inequality. Moreover the beliefs about the determinants of wealth impact individual choices of effort and therefore the beliefs about the determinants of wealth impact inequality and mobility both through choices of effort and redistributive policies. The model generates multiple equilibria (US versus Europe-type) which may account for the observed features not only in terms of societal beliefs and redistribution but also in terms of perceived versus real mobility and inequality.

On the use of rotational splitting asymmetries to probe the internal rotation profile of stars: Application to beta Cephei stars

Rotationally-split modes can provide valuable information about the internal rotation profile of stars. This has been used for years to infer the internal rotation behavior of the Sun. The present work discusses the potential additional information that rotationally splitting asymmetries may provide when studying the internal rotation profile of stars. We present here some preliminary results of a method, currently under development, which intends: 1) to understand the variation of the rotational splitting asymmetries in terms of physical processes acting on the angular momentum distribution in the stellar interior, and 2) how this information can be used to better constrain the internal rotation profile of the stars. The accomplishment of these two objectives should allow us to better use asteroseismology as a test-bench of the different theories describing the angular momentum distribution and evolution in the stellar interiors. (C) 2010 WILEY-VCH Verlag GmbH&Co. KGaA, Weinheim

All-pay auctions with endogenous asymmetries

We study N-bidders, asymmetric all-pay auctions under incomplete information. First, we solve for the equilibrium of a parametric model. Each bidder’s valuation is independently drawn from an uniform [0, αi] where the parameter αi may vary across bidders. In this game, asymmetries are exogenously given. Next, a two-stage game where asymmetries are endogenously generated is studied. At the first stage, each bidder chooses the level of an observable, costly, value-enhancing action. The second stage is the bidding sub-game, whose equilibrium is simply the equilibrium of the, previously analyzed, game with exogenous asymmetries. Finally, natural applications of the all pay-auction in the context of political lobbying are considered: the effects of excluding bidders, as well as, the impact of caps on bids.

Information and communication technologies for agricultural development in Latin America: trends, barriers and policies

Includes bibliography

Parity violating asymmetry in the electron deuteron quasielastic scattering, strange vector and axial vector form factors and beam normal spin asymmetries

In dieser Arbeit wurde die paritätsverletzende Asymmetrie in derrnquasielastischen Elektron-Deuteron-Streuung bei Q^2=0.23 (GeV/c)^2 mitrneinem longitudinal polarisierten Elektronstrahl bei einer Energie von 315rnMeV bestimmt. Die Messung erfolgte unter Rückwärtswinkeln. Der Detektor überdeckte einen polaren Streuwinkelbereichrnzwischen 140 und 150 deg. Das Target bestand aus flüssigemrnDeuterium in einer Targetzelle mit einer Länge von 23.4 cm. Dierngemessene paritätsverletzende Asymmetrie beträgt A_{PV}^d = (-20.11 pm 0.87_{stat} pm 1.03_{syst}), wobei der erste Fehler den statistischenrnFehlereitrag und der zweite den systematischen Fehlerbeitrag beschreibt. Ausrnder Kombination dieser Messung mit Messungen der paritätsverletzendenrnAsymmetrie in der elastischen Elektron-Proton-Streuung bei gleichem Q^2rnsowohl bei Vorwärts- als auch bei Rückwärtsmessungen können diernVektor-Strange-Formfaktoren sowie der effektive isovektorielle und isoskalarernVektorstrom des Protons, der die elektroschwachen radiativen Anapolkorrekturenrnenthält, bestimmt werden. Diese Arbeit umfasst ausserdem die Bestimmungrnder Asymmetrien bei einem transversal polarisierten Elektronstrahl sowohl beirneinem Proton- als auch einem Deuterontarget unter Rückwärtswinkeln beirnImpulsüberträgen von Q^2=0.10 (GeV/c)^2, Q^2=0.23 (GeV/c)^2rnund Q^2=0.35 (GeV/c)^2. Die im Experiment beobachteten Asymmetrien werdenrnmit theoretischen Berechnungen verglichen, welche den Imaginärteil der Zweiphoton-Austauschamplitude beinhalten.

Do left and right asymmetries of hemispheric preference interact with attention to predict local and global performance in applied tasks?

Many cognitive neuroscience studies show that the ability to attend to and identify global or local information is lateralised between the two hemispheres in the human brain; the left hemisphere is biased towards the local level, whereas the right hemisphere is biased towards the global level. Results of two studies show attention-focused people with a right ear preference (biased towards the left hemisphere) are better at local tasks, whereas people with a left ear preference (biased towards the right hemisphere) are better at more global tasks. In a third study we determined if right hemisphere-biased followers who attend to global stimuli are likely to have a stronger relationship between attention and globally based supervisor ratings of performance. Results provide evidence in support of this hypothesis. Our research supports our model and suggests that the interaction between attention and lateral preference is an important and novel predictor of work-related outcomes. © 2012 Copyright Psychology Press Ltd.