1,720,962 research outputs found
The implications of information processing efficiency on decision making
No full textThis thesis investigates the implications of information processing efficiency on decision making with respect to the ability of decision makers to process information in a rational and timely manner. In order to examine the different aspects of information efficiency with respect to decision making, three different settings were used. First, attitudes and perceptions held by individual decision makers play an important role in the information processing stage of a decision. Therefore, the first thrust of this thesis seeks to investigate the impact of demographic characteristics of decision makers (socially responsible investors (SRIs)) on their attitudes and perceptions (in relation to their corporate social responsibility (CSR) views). The results show that demographic characteristics are useful predictors of CSR views held by SRIs. This implies that companies can reduce their cost of capital by attracting the affluent members of SRIs community and increase their CSR rankings by creating diversity in their corporate boardrooms. These efforts, if undertaken by companies, can help increase share price of the respective companies. Government agencies can also encourage companies to implement CSR agendas by requiring companies to implement CSR agendas which will appeal to the specific members in the SRIs community (clientele effect). Second, the ability of decision makers to process information in a rational manner can be seriously undermined when decision makers are expected to match the different motivations underlying their own or others? objectives with the multiple choices which are available to them. In the second thrust of the thesis, a state contingent (UK horseracing pari-mutuel betting market) with multi-competitor choices is used to illustrate the discovery of the determinants of demand (day-of-the-week, weekend, public holiday, number of races in the same hour, field size, televised races, flat and jump races, race quality, timing of the race during the day, insider trading, track conditions, bookmakers? over-round and risk attitude of bettors) unique to different groups of decision makers (bettors). The results demonstrate that unique sets of determinants can be used to identify the different types of decision makers (that is, sophisticated and unsophisticated bettors). Clearly, the discovery of these unique determinants for demand can be used by the respective authorities (British Horseracing Board, Horseracing Betting Levy and Tote boards) in deciding which variables are important to influence the behavior of the respective decision makers (bettors and horseracing authorities). Third, decision makers ought to be able to arrive at a decision in a timely manner. The third thrust of this thesis attempts to investigate the speed of adjustment with respect to the arrival of new and unexpected information in understanding the financial integration process in the Asia Pacific region (APR). Using stock market capitalization as a measure of equity market size, it was also found that more advanced equity markets are more informationally efficient that those less advanced equity markets possibly due to the fact that the infrastructure which supports information flow enables information to be easily accessible by investors for decision making. The results suggest that a more integrated equity market in the APR can lead to a greater speed of adjustment with respect to information shocks. Therefore, domestic governments have a role to play in ensuring the necessary infrastructure to facilitate information flow is improved and better integrated with neighbouring equity markets. Finally, the thesis concludes that demographic characteristics play an important role in influencing the rational information processing involved in decision making by individuals. When confronted with choices, decision makers are affected by their various motivations and those who seek to capitalise on others? decisions need to be aware of these motivations. In addition, the infrastructure on which information flows is essential in influencing the speed at which information is processe
Speculative bubbles in Bitcoin markets? An empirical investigation into the fundamental value of Bitcoin
Full text linkAmid its rapidly increasing usage and immense public interest the subject of Bitcoin has raised profound economic and societal issues. In this paper we undertake economic and econometric modelling of Bitcoin prices. As with many asset classes we show that Bitcoin exhibits speculative bubbles. Further, we find empirical evidence that the fundamental price of Bitcoin is zero
Does size really matter across time? Financial integration dynamics and stock market capitalization in the Asia Pacific equity markets
No full textThe present study argues for size of equity markets, measured by its stock market capitalization, in determining leaders for a fully integrated equity market in the Asia Pacific region. Using cointegration analysis, it was found that Hong Kong SAR could act in such a capacity in the financial integration process. When taking growth-volatility into consideration via the use of Euclidean distance measure, China is diverging from both equity blocks across time and is the least integrated. However, given its growth across time, it is the sole contender for the leadership role surpassing Hong Kong SAR
Drivers of corporate social responsibility attitudes: the demography of socially responsible investors
No full textDemographic characteristics of socially responsible investors (SRIs) are likely to play a significant role in shaping their perceptions and behaviour concerning corporate social responsibility (CSR). This paper identifies demographic characteristics of SRIs and explores the relationship of these characteristics with their CSR attitudes. We analyse, using generalized ordered logistic regression, the questionnaire responses of 2464 SRIs from 20 countries. The results demonstrate that younger and female SRIs are more likely to believe that a company's social and environmental performance is as important as its financial performance. Female SRIs and those with high incomes are the most likely to believe that companies should be as responsible to their shareholders as to the broader society. In addition, younger SRIs, those with high incomes and those who have attained higher education levels regard socially responsible companies as at least as profitable as other companies. The benefits which companies can derive from understanding the demographic profile of SRIs are examined, including a potentially lower cost of capital, improved CSR rankings and business policy formulation and communication consistent with CSR views held by specific groups of SRIs
Long memory interdependency and inefficiency in Bitcoin markets
Full text linkWe model cross-market Bitcoin prices as long-memory processes and study dynamic interdependence in a fractionally cointegrated VAR framework. We find long-memory in both the individual markets and the system of markets depicting non-homogeneous informational inefficiency. Moreover, Bitcoin markets are found to be fractionally cointegrated, where uncertainty negatively impacts this type of cointegration relationship
The Corporate Social Responsibility of Pharmaceutical Product Recalls: An Empirical Examination of U.S. and U.K. Markets
No full textcorporate social responsibility, pharmaceutical industry, product recalls, shareholder wealth, UK and US comparison,
Improving prediction market forecasts by detecting and correcting possible over-reaction to price movements
No full textWe examine the impact of price trends on the accuracy of forecasts from prediction markets. In particular, we study an electronic betting exchange market and construct independent variables from market price (odds) time series from 6,058 individual markets (a dataset consisting of over 8.4 million price points). Using a conditional logit model, we find that a systematic relationship exists between trends in odds and the accuracy of odds-implied event probabilities; the relationship is consistent with participants over-reacting to price movements. In particular, in different time segments of the market, increasing and decreasing odds lead, respectively, to under- and over-estimation of odds-implied probabilities. We develop a methodology to detect and correct the erroneous forecasts associated with these trends in odds in order to considerably improve the quality of forecasts generated in prediction markets
Stock market capitalization and financial integration in the Asia Pacific region
No full textThe stock market capitalization (SMC) of a country, defined as the aggregated market value equity of companies in the respective equity market, is commonly used to measure the widening and deepening of stock market activity. SMC also influences economic growth predictions and public consensus concerning the value of the stock market. However, no previous work has examined the role this variable plays in the process of financial integration. This paper provides an argument for the use of SMC as a means of deciding which countries are acting as leaders in creating a fully integrated equity market in the Asia Pacific region. A total of twelve countries in the Asia Pacific region were divided into ‘Emerging Market’ and ‘Advanced Market’ equity blocks. We examine the relative size of the speed of adjustments derived from the error correction models following the Engle-Granger two-step procedure framework and apply the Granger causality test. The results suggest that Hong Kong SAR possesses the necessary credentials to act as market leader. In fact, Hong Kong SAR appears to be the only contender for market leader of both the ‘Emerging Market’ and ‘Advanced Market’ equity blocks
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
- …
