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The aim of the study is to present the implications for the financing and sustainability of enterprises based on a ranking methodology for categorical financial data.

Taking advantage of the optimal scaling properties of correspondence analysis (CA), a ranking‐clustering procedure is proposed. The proposed method was applied to categorical financial variables (i.e family farm income, gross profit, gross income, labour income and profitability) collected from a stratified random sampling of 80 Greek pig farms using a structured questionnaire.

The cluster analysis revealed three distinct groups of pig farms. Several recommendations for managerial practices and financial development resulted from this study. For the farms belonging to cluster C₁, that present low rankings on both criteria, a development planning process must be applied that will focus on organizational and management issues. For the farms belonging to cluster C₂, that present low rankings on the “composite income” criterion, policy measures have to be undertaken, aiming at exploiting their own production coefficients, reducing fixed costs and increasing productivity. Finally, for the farms in cluster C₃, that present high scores on both ranking criteria, it is recommended to take actions that will improve their competitiveness.

The findings are limited to five selected financial variables. Therefore, future studies in the same or other business fields would benefit from incorporating a greater number of variables.

The proposed methodological scheme could be useful to practitioners and academics, due to the fact that limited studies have dealt with this ranking problem, particularly in relation to the Greek agricultural business environment.

Motivated by the acoustics of motor vehicles, a coupled fluid–solid system is considered. The air pressure is modeled by the Helmholtz equation, and the structure displacement is described by elastodynamic equations. The acoustic–structure interaction is modeled by coupling conditions on the common interface. First, the existence and uniqueness of solutions are investigated, and then, after recalling fundamental notions of shape optimization, the tensor form of the distributed shape derivative is obtained for the coupled problem. It is then applied to the minimization of the sound pressure by variation of the structure shape through the positioning of beads.

The existence and uniqueness of solutions up to eigenfrequencies are shown by the Fredholm–Riesz–Schauder theory using a novel decomposition into an isomorphism and a compact operator. For the design optimization, the distributed shape derivative is obtained using the averaged adjoint method. It is then used in a closed 3D optimization process of the position of a bead for noise reduction. In this process, the C++ library concepts are used to solve the differential equations on hexahedral meshes with the finite element method of higher order.

The existence and uniqueness of solutions have been shown for the case without absorption, where the given proof allows for extension to the case with absorption in the domain or via boundary conditions. The theoretical results show that the averaged adjoint can be applied to compute distributed shape derivatives in the context of acoustic–structure interaction. The numerical results show that the distributed shape derivative can be used to reduce the sound pressure at a chosen frequency via rigid motions of a nonsmooth shape.

The proof of shape differentiability and the calculation of the distributed shape derivative in tensor form allows to consider nonsmooth shapes for the optimization, which is particularly relevant for the optimal placement of beads or stampings in a structural-acoustic system.

The latest financial crisis has stressed the need of understanding the world financial system as a network of interconnected institutions, where financial linkages play a fundamental role in the spread of systemic risks. In this paper we propose to enrich the topological perspective of network models with a more structured statistical framework, that of Bayesian Gaussian graphical models. From a statistical viewpoint, we propose a new class of hierarchical Bayesian graphical models that can split correlations between institutions into country specific and idiosyncratic ones, in a way that parallels the decomposition of returns in the well-known Capital Asset Pricing Model. From a financial economics viewpoint, we suggest a way to model systemic risk that can explicitly take into account frictions between different financial markets, particularly suited to study the ongoing banking union process in Europe. From a computational viewpoint, we develop a novel Markov chain Monte Carlo algorithm based on Bayes factor thresholding.

This article examines the determination of wage differentials in the public and private sectors of Greece. Also, it considers the effects of income policies on the existing wage differentials for the period 1975‐85. The empirical analysis is based on the hypothesis that wages depend on labour productivity which is a function of certain measurable personal characteristics, such as education, experience and skill. The main findings are that the public sector pays higher wages than the private sector. The public sector also offers higher returns with respect to education and experience, while the private sector compensates more skilled workers. Finally, it is shown that there is a narrowing of existing wage differentials during the examined period especially on determinants expressing productivity‐related characteristics such as education, experience and skill.

This chapter reviews graphical modeling techniques for estimating large covariance matrices and their inverse. The chapter provides a selective survey of different models and estimators proposed by the graphical modeling literature and offers some practical examples where these methods could be applied in the area of health economics.

Collecting customer data is increasingly becoming an automatic process at different customer touchpoints, carried out with the help of artificial intelligence. Modern telecommunication networks are necessary for collecting this data in a timely manner. This chapter describes 5G, the latest generation of mobile telecommunication networks. It outlines the current stage of development and use cases being introduced or planned by telecommunication companies worldwide. A key aspect of the chapter is to explain what 5G means for collecting customer data.

The results of recent macroeconomic studies have consistently reflected economic convergence among the Economic and Monetary Union (EMU) countries. In this paper, we propose to analyse financial measures to discover whether or not the business structures of the EMU countries have grown any closer together. The study is based on a non‐linear principal components analysis in order to achieve a double objective. In the first place, the aim is to find out which factors have been significant for the joint evolution of financial variables over a ten‐year period (1990 to 1999). In the second place, it is to examine the performance of firms in each of the EMU countries in order to assess business convergence between them. The results of the study indicate high levels of convergence in the profitability vs. leverage dimension, while structural differences between countries in the labour productivity vs. sales efficiency dimension have hindered convergence in business practices.

Purpose – The purpose of this chapter is to examine whether or not the Capital Asset Pricing Model (CAPM) reasonably describes the return generating process on the Ghanaian Stock Exchange using monthly return data of 19 individual companies listed on the Exchange during the period January 2000 to December 2009.

Methodology/approach – We follow a methodology similar to Jensen (1968) time series approach. Parameters are estimated using OLS. This study is designed to measure beta risk across different times by following the time series approach. The betas of the individual securities are estimated using time series data of the excess return version of the CAPM.

Findings – Our test results show that although market beta contributes to the variation in equity returns in Ghana, its contribution is not as significant as predicted by the CAPM, and in some cases very weak. Our results also reject the strictest form of the Sharpe–Lintner CAPM, but we found positive linear relationship between equity risk premium and market beta. Instead, our evidence uphold the Jensen (1968) and Jensen, Black, and Scholes (1972) versions of the CAPM.

Research limitations/implications – This study is limited to the single-factor CAPM. Future studies will extend the test to include both size and BE/ME fundamentals and factors relating to P/E ratio, momentum and liquidity.

Practical implications – Our results will make corporate managers to be cautious when using CAPM as a basis to determine cost of equity for investment appraisal purposes, and fund managers when evaluating asset and portfolio performance.

Originality/value – The CAPM is applied to individual securities instead of portfolios, since the model was developed using information on a single security.

This study aims to investigate how different executive compensation structures were related to the performance of firms.

This study was based on a sample of companies with the highest standards of corporate governance listed on the Brazilian Stock Exchange. We adopted the multiple correspondence analysis followed by the hierarchical cluster analysis to propose a typology defined by fixed and variable components of the executive compensation and multiple firm performance indicators.

The analysis produced three clusters, which were submitted to robustness tests, highlighting that companies used the compensatory incentives in striking distinct ways as governance mechanisms. The study found a positive relationship between the performance of companies and the variable incentives of executive compensation, especially the long-term incentive, as well as a negative relationship between the performance of firms and the fixed component of the compensation structure.

This research, whose sample was based on an emerging market, adds empirical evidence to the literature. However, future studies are invited to address the relationships between executive compensation structures and firm performance in other markets, as well as to examine these relationships in companies with distinct levels of governance.

This study provides insights on how the incentive structure can be adopted as an efficient governance mechanism, especially for companies in emerging markets.

The main novelty of this paper is that the methodological strategy used here enabled the authors to discriminate distinct executive compensation structures and establish a relationship between these compensation structures and different types of performance indicators.