Giulio Palomba and Luca Riccetti
This paper aims to perform an analytical analysis on portfolio allocation when a tracking error volatility (TEV) constraint holds, drawing specific attention to the portfolio…
Abstract
Purpose
This paper aims to perform an analytical analysis on portfolio allocation when a tracking error volatility (TEV) constraint holds, drawing specific attention to the portfolio efficiency issue. Indeed, it is well known that investors can assign part of their funds to asset managers who are given the task of beating a benchmark portfolio. However, the risk management office often imposes a TEV constraint to the asset managers’ activity to maintain the portfolio risk near to the risk of the benchmark. This situation could lead asset managers to select non efficient portfolios in the total return and absolute risk perspective. However, the risk management office can impose further constraints, such as on maximum variance or maximum value at risk (VaR) to maintain the overall portfolio risk under control.
Design/methodology/approach
First the authors define the TEV constrained-efficient frontier (ECTF), a set of TEV constrained portfolios that are mean–variance efficient. Second, they define two new portfolio frontiers analyzing how the imposition of a maximum variance or maximum VaR restriction can reduce the ECTF. Third, they investigate the feasibility of such portfolio frontiers and their relationships.
Findings
The authors find that variance or VaR constraint can force asset managers to pursue portfolio efficiency.
Originality/value
This is a practically important issue given that asset managers often receive a constraint on TEV from the risk management office, but the risk management office does not ask them to minimize the TEV as often assumed in the optimizations performed in the literature on this topic.
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Alexander Wagner, Douglas Edward Turner and Terry Anthony Byrd
The focus of this investigation is to distinguish the difference between technologies and processes found in manufacturing environments, where the magnitude and order of these…
Abstract
The focus of this investigation is to distinguish the difference between technologies and processes found in manufacturing environments, where the magnitude and order of these associations may provide insight into the degree that each may require from a “push‐pull” perspective. Each organization is divided into two differing parameters of communication: internal and external. The results suggest that advanced manufacturing technologies (AMTs) and advanced manufacturing processes (AMPs) are positively related, while a technology such as EDI is not equally distributed between the concepts of internal and external communications. The predominant research design for analyzing the impact of a new technology on an organization has been the case study design, which does not provide a consistent basis for comparing and generalizing results. This study employs the survey design and provides a better insight into the effects of AMTs and AMPs.
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BELARUS: 'Subversion' claims add to poll uncertainties
Details
DOI: 10.1108/OXAN-ES254252
ISSN: 2633-304X
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Geographic
Topical
Susana Almeida Lopes, Maria Eduarda Duarte and João Almeida Lopes
The purpose of this paper is to propose a predictive model that could replace lawyers’ annual performance rankings and inform talent management (TM) in law firms.
Abstract
Purpose
The purpose of this paper is to propose a predictive model that could replace lawyers’ annual performance rankings and inform talent management (TM) in law firms.
Design/methodology/approach
Eight years of performance rankings of a sample of 140 lawyers from one law firm are used. Artificial neural networks (ANNs) are used to model and simulate performance rankings over time. Multivariate regression analysis is used to compare with the non-linear networks.
Findings
With a lag of one year, performance ranking changes are predicted by the networks with an accuracy of 71 percent, over performing regression analysis by 15 percent. With a lag of two years, accuracy is reduced by 4 percent.
Research limitations/implications
This study contributes to the literature of TM in law firms and to predictive research. Generalizability would require replication with broader samples.
Practical implications
Neural networks enable extended intervals for performance rankings. Reducing the time and effort spent benefits partners and lawyers alike, who can instead devote time to in-depth feedback. Strategic planning, early identification of the most talented and avenues for tailored careers become open.
Originality/value
This study pioneers the use of ANNs in law firm TM. The method surpasses traditional static study of performance through its use of non-linear simulation and prediction modeling.
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Jillian Alderman, Joetta Forsyth, Charla Griffy-Brown and Richard Walton
This study explores the relationship between US public firms’ dividend policies and CEO selection. Specifically, we examine the association between successor CEOs’ prior…
Abstract
Purpose
This study explores the relationship between US public firms’ dividend policies and CEO selection. Specifically, we examine the association between successor CEOs’ prior employment and firms’ payout policies around CEO turnover events.
Design/methodology/approach
Using Execucomp, we identify a sample of 1,021 S&P 1500 firms with CEO turnover events occurring from 2010 to 2016. We categorize successor CEOs by their prior position as a public insider (hired internally from the public firm), public outsider (hired from a different public firm) or private outsider (hired from a private firm). We investigate dividend policies around CEO turnovers using differences-in-means and probit analyses.
Findings
Firms that hired private CEOs were 11.0% less likely to have paid a dividend in the year prior to the CEO turnover. However, those firms that had paid a dividend in the prior year were 5.4% more likely to subsequently drop their dividend. This finding supports a distinct effect that is related to the successor CEOs’ prior experience managing private firms, rather than an “outsider” effect: payout policies of firms that hired public outsiders were no different from those that hired public insiders.
Originality/value
We show that public firms that hire private CEOs tend to have dividend policies similar to those of private firms. This evidence suggests that human capital developed at private firms is applied when CEOs transfer to public firms. We show that outsiders from public firms behave differently from outsiders from private firms, and we are the first to measure the frequency of each kind of CEO successor: public insiders, public outsiders and private outsiders. These findings suggest a method to indirectly study private firms using more readily available data from public firms led by private CEOs.
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Heather J. Forbes, Jenee Vickers Johnson and Jason C. Travers
The innovations in this volume instill a sense of optimism about how special education professionals might improve outcomes for students with disabilities. Although many…
Abstract
The innovations in this volume instill a sense of optimism about how special education professionals might improve outcomes for students with disabilities. Although many interventions illustrate scientific progress toward an evidence-based profession, many special educators may find it challenging to discriminate between scientifically validated innovation and various fads. While innovation reflects the gradual progress of science, fads usually arise suddenly and lack an evidentiary foundation. Some fads may persist over time but without supportive evidence. We present several reasons why we believe special educators adopt fad interventions during an era when scientifically validated special educational practices are readily available. We propose that fads and similar unsubstantiated practices likely will be a persistent problem for special educators. A conservative and judicious approach to adopting “the next big thing” therefore seems important to an evidence-based special education.
Stephanie Al Otaiba, Carol MacDonald Connor, Barbara Foorman, Luana Greulich and Jessica S. Folsom
The primary purpose of this chapter is to describe a synergistic “hybrid” model of Response to Intervention (RtI) that combines individualized effective Tier 1 classroom…
Abstract
The primary purpose of this chapter is to describe a synergistic “hybrid” model of Response to Intervention (RtI) that combines individualized effective Tier 1 classroom instruction with powerful early intervening services. First, we provide an overview and explain how RtI traditionally has been conceptualized. Next, we illustrate how to implement a hybrid model that focuses on beginning reading instruction and also incorporates additional school-level resources. Finally, we will discuss implementation issues related to identifying children who need additional intervention and propose directions for future research.
This chapter discusses the evolution of German views on public debt 1850–1920, referring to three strands of secondary literature: (1) German retrospectives on public finance, (2…
Abstract
This chapter discusses the evolution of German views on public debt 1850–1920, referring to three strands of secondary literature: (1) German retrospectives on public finance, (2) the historical literature with a public choice perspective, and (3) contributions to public/constitutional law, mainly referring to Lorenz von Stein. The skeptic view of public debt endorsed by authors of the second half of the period is shown to be related to politico-economic issues of state agency combined with new state functions, rather than to the rejection of Dietzel’s Proto-Keynesian macroeconomic reasoning.
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Russian private military companies.