Xiang Li and Yongjian Li
This study aims to provide a better understanding of the market balance between regular (high-carbon) and green (low-carbon) products. Further, this study analyses the role of…
Abstract
Purpose
This study aims to provide a better understanding of the market balance between regular (high-carbon) and green (low-carbon) products. Further, this study analyses the role of government subsidy policy, based on the results of the government’s optimal green subsidy decision and its implication for green market segmentation and social welfare.
Design/methodology/approach
This study adopts a Stackelberg game framework to study the interaction between the government’s subsidy regulations and the firms’ marketing regimes. When considering government subsidy decision, we use multi-objective programming theory and turn the problem into weighted single-objective optimisation programming.
Findings
This study explores three marketing regimes and identifies the conditions under which each regime should be adopted by a firm. Further, investigating the optimal subsidy decision problem for the government reveals three subsidy regimes corresponding to the three marketing regimes. The government may be stuck in a regime of useless subsidy and the reason for this phenomenon is analysed as well.
Research limitations/implications
Developing the model into a more complex supply chain situation will enhance the applicability of the framework. Incorporating other environmental regulations, such as carbon tax, can be interesting research extensions of this study.
Practical implications
This study provides a quantitative framework, which can help the regulator gain a deeper understanding of green subsidy policies and assist focal companies in acquiring a better appreciation of green marketing segmentation.
Originality/value
The study is one of the first few works to explore the optimal design of green subsidy regulation for the government and its impact on market segmentations of high- and low-carbon products by using quantitative modelling approaches and deriving vital managerial insights.
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The purpose of this paper is to analyze how exchange ratios in mergers can be assessed when the companies economic capital valuation is carried out in a stochastic framework with…
Abstract
Purpose
The purpose of this paper is to analyze how exchange ratios in mergers can be assessed when the companies economic capital valuation is carried out in a stochastic framework with financial assets and minimum guarantees.
Design/methodology/approach
The paper is a theoretical one. Its main objective is to present a quantitative model for exchange ratios accounting, introducing a stochastic pricing model in the presence of stochastic cash‐flows and representing contractual embedded real option such as minimum guarantees.
Findings
The paper presents a financial model to evaluate the differences in exchange ratios induced by stochastic capital reserves in the merging companies.
Research limitations/implications
Stochastic cash‐flows in the economic capital of the merging companies set up a stochastic capital reserve which represents an additional value and could induce important differences in exchange ratios.
Practical implications
The model is fully applicable, also in the presence of embedded real options such as minimum guarantees, but requires the volatility of the underlying.
Originality/value
The paper should be useful under both a managerial and a theoretical use in order to evaluate stochastic exchange ratios.
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Regulating common‐pool resources is welfare enhancing for society but not necessarily for all users who may therefore oppose regulations. The purpose of this paper is to examine…
Abstract
Purpose
Regulating common‐pool resources is welfare enhancing for society but not necessarily for all users who may therefore oppose regulations. The purpose of this paper is to examine the short‐term impact of common‐pool resource regulations on welfare distribution.
Design/methodology/approach
The authors model a game of common‐pool resource extraction among heterogeneous users.
Findings
It was found that market‐based regulations such as fees and subsidies or tradable quotas achieve a higher reduction of extraction from free‐access than individual quotas with the same proportion of better‐off users. Also, they make more users better‐off for the same resource preservation.
Originality/value
The quota regulation has attractive fairness properties: it reduces inequality while still rewarding the more efficient users.
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Under this heading are published regularly abstracts of all Reports and Memoranda of the Aeronautical Research Committee, Reports and Technical Notes of the U.S. National Advisory…
Abstract
Under this heading are published regularly abstracts of all Reports and Memoranda of the Aeronautical Research Committee, Reports and Technical Notes of the U.S. National Advisory Committee for Aeronautics and publications of other similar research bodies as issued
This study aims to uncover the main predictors of financial distress in the Gulf Cooperation Council (GCC) countries using a wide range of global factors and asset classes.
Abstract
Purpose
This study aims to uncover the main predictors of financial distress in the Gulf Cooperation Council (GCC) countries using a wide range of global factors and asset classes.
Design/methodology/approach
This study uses novel approaches that take into account extreme events as well as the nonlinear behavior of time series over various time intervals (i.e. short, medium and long term) and during boom and bust episodes. This study primarily uses the conditional value at risk (CoVaR), the quantile multivariate causality test and the partial wavelet coherence method. The data collection period ranges from March 2014 to September 2022.
Findings
US T-bills and gold are the primary factors that can increase financial stability in the GCC region, according to VaRs and CoVaRs. More proof of the predictive value of the oil, gold and wheat markets, as well as geopolitical tensions, uncertainty over US policy and volatility in the oil and US equities markets, is provided by the multivariate causality test. When low extreme quantiles or cross extreme quantiles are taken into account, these results are substantial and sturdy. Lastly, after adjusting for the effect of crude oil prices, this study’s wavelet coherence results indicate diminished long-run connections between the GCC stock market and the chosen global determinants.
Research limitations/implications
Despite the implications of the author’s research for decision makers, there are some limitations mainly related to the selection of Morgan Stanley Capital International (MSCI) GCC ex-Saudi Arabia. Considering the economic importance of the Kingdom of Saudi Arabia (KSA) in the region, the author believes that it would be better to include this country in the data to obtain more robust results. In addition, there is evidence in the literature of the existence of heterogeneous responses to global shocks; some markets are more vulnerable than others. This is another limitation of this study, as this study considers the GCC as a bloc rather than each country individually. These limitations could open up further research opportunities.
Originality/value
These findings are important for investors seeking to manage their portfolios under extreme market conditions. They are also important for government policies aimed at mitigating the impact of external shocks.
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Under this heading are published regularly abstracts of all Reports and Memoranda of the Aeronautical Research Committee, Reports and Technical Notes of the U.S. National Advisory…
Abstract
Under this heading are published regularly abstracts of all Reports and Memoranda of the Aeronautical Research Committee, Reports and Technical Notes of the U.S. National Advisory Committee for Aeronautics and publications of other similar research bodies as issued