Many prior tests of market efficiency, which occurred decades ago, were limited by data and did not employ methodology to correct for leptokurtosis in the stock return…
Abstract
Purpose
Many prior tests of market efficiency, which occurred decades ago, were limited by data and did not employ methodology to correct for leptokurtosis in the stock return distribution. Furthermore, these studies did not test many aspects of conditional market efficiency. One aspect of a potential conditional violation of market efficiency is whether stock markets are efficient conditional on the level of stock return.
Design/methodology/approach
This paper uses quantile regressions to control for leptokurtosis in the stock return distribution and simultaneous quantile regressions to test whether markets are efficient conditional on the level of the market return. This paper uses market-level stock return data to bias against finding significant results in the efficiency tests. Furthermore, the author uses data from 1926 through 2018, providing the longest time period to date under which market efficiency is tested.
Findings
This paper presents evidence that the autoregressive coefficient decreases across return levels in stock market indices. The autoregressive coefficient is positive around highly negative returns and negative or insignificant around highly positive returns, which suggests that when stock returns are low they are more likely to continue lower, and when stock returns are high they are more likely to reverse. Results additionally suggest that market efficiency is not time-invariant and that stock markets have become more efficient over the sample period.
Originality/value
This paper extends the literature by finding evidence of a violation of weak-form market efficiency conditional on the level of stock returns. It further extends the literature by finding evidence that the stock market has become more efficient between 1926 and 2018.
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Benjamin Jansen, Md Miran Hossain and Jon Taylor
The purpose of the study is to examine whether analyst coverage responds to changes in investor information demand for a firm and to test whether certain investor or firm…
Abstract
Purpose
The purpose of the study is to examine whether analyst coverage responds to changes in investor information demand for a firm and to test whether certain investor or firm characteristics moderate this association.
Design/methodology/approach
The authors model analyst activeness (AA) as a function of institutional investors' information demand, proxied by news readership on Bloomberg terminals and retail investors' information demand, proxied by the Google Search Volume Index (GSVI). Additionally, the authors take several steps to mitigate concerns about reverse causality that may confound the findings.
Findings
Results suggest that analysts respond to information demand shocks, but partially revert their coverage after the demand shock subsides. Furthermore, the results suggest that analysts cater their coverage more towards institutional investors than to retail investors. Evidence also suggests that analysts are more responsive to investors interested in firms with tech stock characteristics. Finally, the authors find evidence that specialist analysts respond more to institutional investors while generalist analysts respond more to retail investors.
Originality/value
The authors are the first to empirically examine the extent to which analysts cater to investor information demand. This is a vital topic to study because analysts are one of the primary sources of information for market participants. Understanding an analyst's motivation for providing information will help to facilitate market efficiency.
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Purpose – Based on a case study of citizens’ summits in Amsterdam, this chapter examines competing aims bound up in attempts to create an in-between space where participants…
Abstract
Purpose – Based on a case study of citizens’ summits in Amsterdam, this chapter examines competing aims bound up in attempts to create an in-between space where participants struggle to obtain a sense of belonging against the background of (non)diversity.
Methodology/Approach – A qualitative case study approach is used based on participant observation, informal talks with participants, and interviews with the summit organizers.
Findings – A citizens’ summit can be seen as an in-between space where narratives of citizens should dominate instead of (local) governmental rhetoric. Citizens´ summits create a voice for citizens who are normally less heard in the public debate. To what extent this can be achieved depends on how a summit enables a diversity of participants to practice dialogue, create common ground and share ownership of ideas, problems and solutions. Our findings provide insight into contested belonging within the democratic system in the Netherlands and elsewhere.
Social Implications – We suggest that belonging, space and diversity affect social boundaries between those in the electoral democratic system and those participating in citizens’ summits. Focussing on these can lead towards more inclusive democratic systems for all.
Originality/Value of the Paper – Citizens’ summits are often seen as a democratic tool that supplements the electoral democracy. This study looks at the interactions between participants, revealing much about the functioning of deliberative space in citizens’ summits. We also focus on the issue of participant diversity and how senses of belonging include or exclude sections of society.
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F. Canan Pembe and Tunga Güngör
The purpose of this paper is to develop a new summarisation approach, namely structure‐preserving and query‐biased summarisation, to improve the effectiveness of web searching…
Abstract
Purpose
The purpose of this paper is to develop a new summarisation approach, namely structure‐preserving and query‐biased summarisation, to improve the effectiveness of web searching. During web searching, one aid for users is the document summaries provided in the search results. However, the summaries provided by current search engines have limitations in directing users to relevant documents.
Design/methodology/approach
The proposed system consists of two stages: document structure analysis and summarisation. In the first stage, a rule‐based approach is used to identify the sectional hierarchies of web documents. In the second stage, query‐biased summaries are created, making use of document structure both in the summarisation process and in the output summaries.
Findings
In structural processing, about 70 per cent accuracy in identifying document sectional hierarchies is obtained. The summarisation method is tested on a task‐based evaluation method using English and Turkish document collections. The results show that the proposed method is a significant improvement over both unstructured query‐biased summaries and Google snippets in terms of f‐measure.
Practical implications
The proposed summarisation system can be incorporated into search engines. The structural processing technique also has applications in other information systems, such as browsing, outlining and indexing documents.
Originality/value
In the literature on summarisation, the effects of query‐biased techniques and document structure are considered in only a few works and are researched separately. The research reported here differs from traditional approaches by combining these two aspects in a coherent framework. The work is also the first automatic summarisation study for Turkish targeting web search.
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Ambidexterity in teams represents powerful dynamic capabilities for innovation and adaptation in rapidly changing environments. This study focused on the emerging concept of team…
Abstract
Purpose
Ambidexterity in teams represents powerful dynamic capabilities for innovation and adaptation in rapidly changing environments. This study focused on the emerging concept of team ambidexterity. Primary purposes were to consolidate emerging research on ambidexterity within teams and to synthesise antecedent inputs.
Design/methodology/approach
This study applied a systematic content-based review method to collect articles relevant to enabling ambidexterity within teams. The study integrated relevant studies on ambidexterity and on teams and teamwork. It analysed content through theoretical frameworks of ambidexterity and dynamic capabilities.
Findings
Team ambidexterity constitutes a distinct and increasingly important organisational concept beyond just supporting firm-level ambidexterity. Team ambidexterity depends on inputs that can include ambidexterity's multilevel, generic mechanisms and additional team-centric inputs specially characterising teams.
Practical implications
Organisational leaders need insights into the valuable potential of ambidextrous teams that can increase innovation and enable successful adaptation at an operational level for longterm survival and competitive advantage in volatile environments. The study highlights the essential inputs for designing and equipping ambidextrous teams.
Originality/value
Team ambidexterity research is growing, but so far it has mostly addressed team ambidexterity as a microfoundation supporting firm-level ambidexterity. Existing studies have remained mostly disparate and unorganized. This study appears unique in having identified and synthesised studies most relevant to developing ambidexterity within teams. The study articulated a more comprehensive understanding of team ambidexterity, derived a novel set of team-centric inputs and analysed ambidexterity as dynamic capabilities at operational unit level.
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Charles Danso, Margarita Kaprielyan and Md Miran Hossain
Recent studies explore how chief executive officer (CEO) social capital affects corporate decision-making. Well-connected CEOs can have greater access to information, which can…
Abstract
Purpose
Recent studies explore how chief executive officer (CEO) social capital affects corporate decision-making. Well-connected CEOs can have greater access to information, which can lead to better corporate decisions or permit them to amass power from hierarchy status and make self-serving decisions. This study examines whether investors perceive CEO social capital as a signal of good decision-making (assuming information asymmetry) surrounding asset sell-off events.
Design/methodology/approach
The authors use multivariate regression analysis to examine the effect of CEO social capital on the cumulative abnormal returns (CARs) of the asset buyers and sellers. CARs are estimated using a market model in the period proximate to asset sell-off announcements.
Findings
The authors find that CEO social capital is positively associated with announcement returns of the asset sellers. Moreover, the positive effect of CEO social capital on announcement returns is more pronounced for sellers facing greater information asymmetry. An analysis of post-announcement stock performance reveals that the seller CEO social capital is associated with additional value generated for the shareholders of the seller after a month from the announcement date, especially if the transaction price is disclosed. Overall, findings are consistent with the argument that CEO social capital provides value in high information asymmetry environment.
Originality/value
To the authors' knowledge this is the first study to examine the effect of CEO social capital on the shareholders' wealth created by divestitures.
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Lindsay Turpie, Sandy Whitelaw and Christopher Topping
The purpose of this paper is to report on the implementation of a physical activity (PA) scheme – Let’s Motivate (LM) – within private care homes (CHs) in Dumfries and Galloway…
Abstract
Purpose
The purpose of this paper is to report on the implementation of a physical activity (PA) scheme – Let’s Motivate (LM) – within private care homes (CHs) in Dumfries and Galloway (D&G), Scotland; aiming to provide an insight into the different factors which might contribute to its success and further sustainability.
Design/methodology/approach
A qualitative study is described in which one-to-one semi-structured interviews were carried out with eight key staff involved in implementing the project within two purposively sampled CHs; in order to explore their views and experiences of implementation.
Findings
The paper provides an insight into the different factors which stand to both promote and impede the successful implementation of LM, within the two CHs involved.
Originality/value
This paper explores a new and innovative PA initiative in CHs in D&G, Scotland. Studies exploring the factors which can both promote and impede implementation are important as they can help to usefully inform the implementation and sustainability of initiatives.
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Beyza Gultekin and Sabri Erdem
This study explores the importance of application search engine (ASE) technology in the omni-channel strategy. For this purpose, this chapter firstly explains the concepts of the…
Abstract
This study explores the importance of application search engine (ASE) technology in the omni-channel strategy. For this purpose, this chapter firstly explains the concepts of the omni-channel and the search engines and the importance of them. Then, omni-channel in the framework of ASEs is discussed. Finally, recommendations for further researches are presented.
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This chapter looks at the methodology, benefits and accessibility of circle processes in the context of building resilience amongst women (and men) in high violence communities in…
Abstract
This chapter looks at the methodology, benefits and accessibility of circle processes in the context of building resilience amongst women (and men) in high violence communities in South Africa. It examines the methodology and effectiveness of circles in two communities (Manenberg and Lavender Hill) where pilot projects are being undertaken.