Essays on risk aversion, diversification and non -participation

My dissertation consists of three essays. The central theme of these essays is the psychological factors and biases that affect the portfolio allocation decision. The first essay entitled, “Are women more risk-averse than men?” examines the gender difference in risk aversion as revealed by actual investment choices. Using a sample that controls for biases in the level of education and finance knowledge, there is evidence that when individuals have the same level of education, irrespective of their knowledge of finance, women are no more risk-averse than their male counterparts. However, the gender-risk aversion relation is also a function of age, income, wealth, marital status, race/ethnicity and the number of children in the household. The second essay entitled, “Can diversification be learned ?” investigates if investors who have superior investment knowledge are more likely to actively seek diversification benefits and are less prone to allocation biases. Results of cross-sectional analyses suggest that knowledge of finance increases the likelihood that an investor will efficiently allocate his direct investments across the major asset classes; invest in foreign assets; and hold a diversified equity portfolio. However, there is no evidence that investors who are more financially sophisticated make superior allocation decisions in their retirement savings. The final essay entitled, “The demographics of non-participation ”, examines the factors that affect the decision not to hold stocks. The results of probit regression models indicate that when individuals are highly educated, the decision to not participate in the stock market is less related to demographic factors. In particular, when individuals have attained at least a college degree and have advanced knowledge of finance, they are significantly more likely to invest in equities either directly or indirectly through mutual funds or their retirement savings. There is also evidence that the decision not to hold stocks is motivated by short-term market expectations and the most recent investment experience. The findings of these essays should increase the body of research that seeks to reconcile what investors actually do (positive theory) with what traditional theories of finance predict that investors should do (normative theory).

Regional diversification and performance: Conceptualization and competing strategic objectives

This dissertation comprised of three essays provides justification for the need to pursue research on multinationality and performance with a more fine-grained approach. Essay one is a conceptual response to an article written by Jean-Francois Hennart in 2011 which questions the need and approach toward future research in this domain. I argue that internalization theory does not render multinationality and performance research meaningless and identify key areas where methodological enhancements can be made to strengthen our research findings with regard to Hennart's call for more content validity. Essay two responds to the need for more-fine grained research on the consequences of multinationality by introducing non-traditional measures of performance such as social and environmental performance and adopting a more theoretically relevant construct of regionalization to capture international diversification levels of the firm. Using data from the world's largest 600 firms (based on sales) derived from Bloomberg and the Directory of Corporate Affiliates; I employ general estimating equation analysis to account for the auto-correlated nature of the panel data alongside multivariate regression techniques. Results indicate that regionalization has a positive relationship with economic performance while it has a negative relationship with environmental and social performance outcomes, often referred to as the "Triple Bottom-Line" performance. Essay three builds upon the work in the previous essays by linking the aforementioned performance variables and sample to corporate reputation which has been shown to be a beneficial strategic asset. Using Structural Equation Modeling I explore economic, environmental and social signals as mediators on relationship between regionalization and firm reputation. Results indicate that these variables partially mediate a positive relationship between regionalization and firm reputation. While regionalization positively affects the reputation building signal of economic performance, it aids in reputation building by reducing environmental and social disclosure effects which interestingly impact reputation negatively. In conclusion, the dissertation submits opportunities for future research and contributes to research by demonstrating that regionalization affects performance, but the effect varies in accordance with the performance criterion and context. In some cases, regional diversification may produce competing or conflicting outcomes among the potential strategic objectives of the firm.

Essays on Risk Aversion, Diversification and Non-Participation

My dissertation consists of three essays. The central theme of these essays is the psychological factors and biases that affect the portfolio allocation decision. The first essay entitled, “Are women more risk-averse than men?” examines the gender difference in risk aversion as revealed by actual investment choices. Using a sample that controls for biases in the level of education and finance knowledge, there is evidence that when individuals have the same level of education, irrespective of their knowledge of finance, women are no more risk-averse than their male counterparts. However, the gender-risk aversion relation is also a function of age, income, wealth, marital status, race/ethnicity and the number of children in the household. The second essay entitled, “Can diversification be learned?” investigates if investors who have superior investment knowledge are more likely to actively seek diversification benefits and are less prone to allocation biases. Results of cross-sectional analyses suggest that knowledge of finance increases the likelihood that an investor will efficiently allocate his direct investments across the major asset classes; invest in foreign assets; and hold a diversified equity portfolio. However, there is no evidence that investors who are more financially sophisticated make superior allocation decisions in their retirement savings. The final essay entitled, “The demographics of non-participation”, examines the factors that affect the decision not to hold stocks. The results of probit regression models indicate that when individuals are highly educated, the decision to not participate in the stock market is less related to demographic factors. In particular, when individuals have attained at least a college degree and have advanced knowledge of finance, they are significantly more likely to invest in equities either directly or indirectly through mutual funds or their retirement savings. There is also evidence that the decision not to hold stocks is motivated by short-term market expectations and the most recent investment experience. The findings of these essays should increase the body of research that seeks to reconcile what investors actually do (positive theory) with what traditional theories of finance predict that investors should do (normative theory).

Stream drying drives microbial ammonia oxidation and first-flush nitrate export

Funded by Spanish National Research Council (CSIC). Grant Number: CGL2012-32747 MINECO. Grant Numbers: CGL2012-32747, CGL2011-30590-CO2-02 EU Commission. Grant Number: 244121 FP7

Explaining intermittent exporting:exit and conditional re-entry in export markets

Intermittent exporting is something of a puzzle. In theory, exporting represents a major commitment, and is often the starting point for further internationalisation. However, intermittent exporters exit and subsequently re-enter exporting, sometimes frequently. We develop a conceptual model to explain how firm characteristics and market conditions interact to affect the decision to exit and re-enter exporting, and model this process using an extensive dataset of French manufacturing firms from 1997 to 2007. As anticipated, smaller and less productive firms are more likely to exit exporting, and react more strongly to changes in both domestic and foreign markets than larger firms. Exit and re-entry are closely linked. Firms with a low exit probability also have a high likelihood of re-entry, and vice versa. However, the way in which firms react to market conditions at the time of exit matters greatly in determining the likelihood of re-entry: thus re-entry depends crucially on the strategic rationale for exit. Our analysis helps explain the opportunistic and intermittent exporting of (mainly) small firms, the demand conditions under which intermittent exporting is most likely to occur, and the firm attributes most likely to give rise to such behavior.

Editor's choice Regional trade agreements and export competitiveness: the uncertain path of Nicaragua’s apparel exports under CAFTA

The Central American Free Trade Agreement (CAFTA) has been a mixed blessing for economic development. While exports to the US economy have increased, dependency may hinder economic growth if countries do not diversify or upgrade before temporary provisions expire. This article evaluates the impact of the temporary Tariff Preference Levels (TPLs) granted to Nicaragua under CAFTA and the consequences of TPL expiration. Using trade statistics, country- and firm-level data from Nicaragua’s National Free Zones Commission (CNZF) and data from field research, we estimate Nicaragua’s apparel sector will contract as much as 30–40% after TPLs expire. Our analysis underscores how rules of origin and firm nationality affect where and how companies do business, and in so doing, often constrain sustainable export growth.

Sea surface temperature and export productivity reconstructions of sediments off the western Iberian margin

Present day hydrographic conditions along the western Iberian margin are characterized by seasonal upwelling with filaments that can penetrate more than 200 km into the open ocean and constitute areas of cold and highly productive waters. In order to investigate spatial and temporal gradients in temperature and productivity conditions during the last 150 ky, high-resolution proxy records were generated in 3 cores (SU92-03, MD95-2040, MD95-2042), located along the Iberian coast between 43°12'N and 37°48'N and forming a N-S profile. In all cores, planktonic foraminifera census counts are used to reconstruct summer sea surface temperature (SSTsu) and export productivity (Pexpsu) using the modern analog technique SIMMAX 28. SSTsu and Pexpsu values similar to the present are observed throughout the Holocene and MIS 5e periods for each site, respectively, indicating fairly stable conditions equivalent to the modern ones. On glacial/interglacial timescales, SSTsu increases by 2-3 °C from the northern to southernmost site. Pexpsu, on the other hand, shows a decrease of 30-40 gC/m**2/yr from North to South at present time and during interglacial periods, and no significant variation (90-100 gC/m**2/yr) during glacial periods. The northernmost core SU92-03 reveals the coldest conditions with records more similar to MD95-2040 than to MD95-2042, the later of which is, as at present, more affected by subtropical waters. Core SU92-03 shows higher interglacial productivity similar to open ocean mid- to high latitude sites, while the other two cores monitor higher glacial productivity conform with other upwelling sites off NW Africa. A boundary between differences in glacial/interglacial productivity appears to be present in our study between 43°12'N and 40°35'N. Especially north of 40°N, coldest SSTsu and lowest Pexpsu are found during Heinrich events (H)1-H8 and H10-H11. In contrast, lowest Pexpsu do not coincide with these events at site MD95-2042, but appear to be related to the presence of relatively warm and nutrient-poor subtropical Eastern North Atlantic Central Water advected with the Azores Current.

Under-ice export flux measurements by short-term drifting sediment traps at 27 stations in the Arctic Ocean during summer 1995, 1997, and 2012

A critical question regarding the organic carbon cycle in the Arctic Ocean is whether the decline in ice extent and thickness and the associated increase in solar irradiance in the upper ocean will result in increased primary production and particulate organic carbon (POC) export. To assess spatial and temporal variability in POC export, under-ice export fluxes were measured with short-term sediment traps in the northern Laptev Sea in July-August-September 1995, north of the Fram Strait in July 1997, and in the Central Arctic in August-September 2012. Sediment traps were deployed at 2-5 m and 20-25 m under ice for periods ranging from 8.5 to 71 h. In addition to POC fluxes, total particulate matter, chlorophyll a, biogenic particulate silica, phytoplankton, and zooplankton fecal pellet fluxes were measured to evaluate the amount and composition of the material exported in the upper Arctic Ocean. Whereas elevated export fluxes observed on and near the Laptev Sea shelf were likely the combined result of high primary production, resuspension, and release of particulate matter from melting ice, low export fluxes above the central basins despite increased light availability during the record minimum ice extent of 2012 suggest that POC export was limited by nutrient supply during summer. These results suggest that the ongoing decline in ice cover affects export fluxes differently on Arctic shelves and over the deep Arctic Ocean and that POC export is likely to remain low above the central basins unless additional nutrients are supplied to surface waters.

Chinese export competition, declining exports and adjustments at the industry and regional level in Europe

We analyze how a set of 22 European countries was affected by increased Chinese export competition between 1995 and 2008. Employing product-group level data, we observe a reduction in the export volumes of European countries due to increased Chinese export competition. This deceleration in the export sector induces changes within the manufacturing industries, especially a decline in employment. When using more aggregated, regional-level data, our analysis shows that the industry sector as a whole declines, resulting in an increased unemployment rate. The importance of Chinese export competition for Europe is attributable to its high export intensity.

Analisi del ruolo del porto di Ravenna nell’import/export di prodotti ortofrutticoli

L'elaborato tratta il ruolo del porto di Ravenna nell'import/export di prodotti ortofrutticoli. Dopo una accurata analisi dei dati, lo studio delle rotte marittime e l'uso di Dbms per gestire un database complesso, si propone un modello di programmazione lineare intera su un problema di ship routing, ship scheduling e full ship-load balancing. L'obiettivo è di massimizzare il profitto derivante da un prezzo di vendita e soggetto ai vari costi della logistica. Il modello sceglie la rotta ottimale da effettuare, in termini di ordine di visita dei vari porti che hanno un import e un export dei prodotti studiati. Inoltre, è in grado di gestire lo scorrere del tempo, fornendo come soluzione il giorno ottimale di visita dei vari porti considerati. Infine, trova la ripartizione ottima del numero di container a bordo della nave per ogni tipologia di prodotto.

Évolution des aptitudes physiques et motrices d’élèves-athlètes inscrits dans un programme de spécialisation sportive et d’élèves-athlètes inscrits dans un programme de diversification sportive.

Résumé : L’entrainement sportif est « un processus de perfectionnement de l’athlète dirigé selon des principes scientifiques et qui, par des influences planifiées et systématiques (charges) sur la capacité de performance, vise à mener le sportif vers des performances élevées et supérieures dans un sport ou une discipline sportive » (Harre, 1982). Un entrainement sportif approprié devrait commencer dès l’enfance. Ainsi, le jeune sportif pourrait progressivement et systématiquement développer son corps et son esprit afin d’atteindre l’excellence sportive (Bompa, 2000; Weineck, 1997). Or plusieurs entraineurs, dans leur tentative de parvenir à des résultats de haut niveau rapidement, exposent les jeunes athlètes à une formation sportive très spécifique et rigoureuse, sans prendre le temps de développer convenablement les aptitudes physiques et motrices et les habiletés motrices fondamentales sous-jacentes aux habiletés sportives spécifiques (Bompa, 2000), d’où l’appellation « spécialisation hâtive ». Afin de contrer les conséquences néfastes de la spécialisation hâtive, de nouvelles approches d’entrainement ont été proposées. Une des façons d’y arriver consisterait notamment à pratiquer différents sports en bas âge (Fraser-Thomas, Côté et Deakin, 2008; Gould et Carson, 2004; Judge et Gilreath, 2009; LeBlanc et Dickson, 1997; Mostafavifar, Best et Myer, 2013), d’où l’appellation « diversification sportive ». Plusieurs organisations sportives et professionnelles ont décidé de valoriser et de mettre en place des programmes basés sur la diversification sportive (Kaleth et Mikesky, 2010). C’est donc à la suite d’une prise de conscience des effets néfastes de la spécialisation hâtive que des professionnels de l’activité physique d’une école secondaire du Québec (éducateur physique, kinésiologue et agent de développement sportif) ont mis en place un programme multisports-études novateur au premier cycle du secondaire, inspiré des sciences du sport et des lignes directrices du modèle de développement à long terme de l’athlète (DLTA) (Balyi, Cardinal, Higgs, Norris et Way, 2005). Le présent projet de recherche porte sur le développement des aptitudes physiques et motrices chez de jeunes sportifs inscrits à un programme de spécialisation sportive et de jeunes sportifs inscrits à un programme de diversification sportive à l’étape « S’entrainer à s’entrainer » (12 à 16 ans) du modèle de développement à long terme de l’athlète (Balyi et al., 2005). L’objectif principal de cette étude est de rendre compte de l’évolution des aptitudes physiques et motrices de jeunes élèves-athlètes inscrits, d’une part, à un programme sport-études soccer (spécialisation) et, d’autre part, à un programme multisports-études (diversification). Plus spécifiquement, cette étude tente de (a) dresser un portrait détaillé de l’évolution des aptitudes physiques et motrices des élèves-athlètes de chaque programme et de faire un parallèle avec la planification annuelle de chaque programme sportif et (b) de rendre compte des différences d’aptitudes physiques et motrices observées entre les deux programmes. Le projet de recherche a été réalisé dans une école secondaire de la province de Québec. Au total, 53 élèves-athlètes de première secondaire ont été retenus pour le projet de recherche selon leur volonté de participer à l’étude, soit 23 élèves-athlètes de première secondaire inscrits au programme sport-études soccer et 30 élèves-athlètes de première secondaire inscrits au programme multisports-études. Les élèves-athlètes étaient tous âgés de 11 à 13 ans. Treize épreuves standardisées d’aptitudes physiques et motrices ont été administrées aux élèves-athlètes des deux programmes sportifs en début, en milieu et en fin d’année scolaire. Le traitement des données s’est effectué à l’aide de statistiques descriptives et d’une analyse de variance à mesures répétées. Les résultats révèlent que (a) l’ensemble des aptitudes physiques et motrices des élèves-athlètes des deux programmes sportifs se sont améliorées au cours de l’année scolaire, (b) il est relativement facile de faire un parallèle entre l’évolution des aptitudes physiques et motrices des élèves-athlètes et la planification annuelle de chaque programme sportif, (c) les élèves-athlètes du programme multisports-études ont, en général, des performances semblables à celles des élèves-athlètes du programme sport-études soccer et (d) les élèves-athlètes du programme sport-études soccer ont, au cours de l’année scolaire, amélioré davantage leur endurance cardiorespiratoire, alors que ceux du programme multisports-études ont amélioré davantage (a) leur vitesse segmentaire des bras, (b) leur agilité à l’épreuve de course en cercle et (c) leur puissance musculaire des membres inférieurs, confirmant ainsi que les aptitudes physiques et motrices développées chez de jeunes athlètes qui se spécialisent tôt sont plutôt spécifiques au sport pratiqué (Balyi et al., 2005; Bompa, 1999; Cloes, Delfosse, Ledent et Piéron, 1994; Mattson et Richards, 2010), alors que celles développées à travers la diversification sportive sont davantage diversifiées (Coakley, 2010; Gould et Carson, 2004; White et Oatman, 2009). Ces résultats peuvent s’expliquer par (a) la spécificité ou la diversité des tâches proposées durant les séances d’entrainement, (b) le temps consacré à chacune de ces tâches et (c) les exigences reliées à la pratique du soccer comparativement aux exigences reliées à la pratique de plusieurs disciplines sportives. Toutefois, les résultats obtenus restent complexes à interpréter en raison de différents biais : (a) la maturation physique, (b) le nombre d’heures d’entrainement effectué au cours de l’année scolaire précédente, (c) le nombre d’heures d’entrainement offert par les deux programmes sportifs à l’étude et (d) les activités physiques et sportives pratiquées à l’extérieur de l’école. De plus, cette étude ne permet pas d’évaluer la qualité des interventions et des exercices proposés lors des entrainements ni la motivation des élèves-athlètes à prendre part aux séances d’entrainement ou aux épreuves physiques et motrices. Finalement, il serait intéressant de reprendre la présente étude auprès de disciplines sportives différentes et de mettre en évidence les contributions particulières de chaque discipline sportive sur le développement des aptitudes physiques et motrices de jeunes athlètes.

Création de modèles multi-indices et impact sur l'efficacité du processus de diversification

La plus grande partie de la corrélation entre les rendements des titres individuels est bien entendu expliquée par le marché. Cependant, les chercheurs s'entendent aujourd'hui pour dire qu'il existe des sources de covariation importante en dehors du marché. Ces sources de covariation ont souvent été décrites comme des effets d'industries (Benjamin King); plus généralement, on parlera ici d'effets de groupes. On parlera d'effets de groupes pour signifier que, s'il est vrai que les titres peuvent se regrouper d'après leur covariation, nette de l'effet du marché, ils ne se regroupent pour autant pas forcément d'après la classe d'industrie dans laquelle ils sont rangés…

Export Behavior and Board Independence in Colombian Family Firms: The Reverse Causality Relationship

In the context of greater market liberalization in Latin America, one issue that merits greater attention for empirical investigation is the international expansion of family-owned business. Specifically, the relationship between export behavior, family control and board composition in the Latin American context is absent in the literature. Using a large and unique database from Colombian firms (33,249 firms in the period of 2008 to 2013), we provide insightful information on the determinants of export behavior of family firms in emerging markets. Our empirical test confirms an endogenous relation between boards’ composition (specifically the presence of independent members) and export behavior in family firms. Firms with a higher participation of independent board members are more likely to exhibit higher levels of exports. A "virtuous cycle" was also detected whereby the introduction of independent members on the board can be expected to boost export behavior, which in turn will encourage the increase of independent members on the board of private firms.