Jaime F. Lavin and Nicolás S. Magner
The purpose of this paper is to identify elements of intentional herd behavior (HB), differentiating it from spurious, or unintentional HB.
Abstract
Purpose
The purpose of this paper is to identify elements of intentional herd behavior (HB), differentiating it from spurious, or unintentional HB.
Design/methodology/approach
Using a panel of 50 stocks belonging to 18 Chilean equity mutual funds between December 2002 and October 2009, with manually collected data regarding physical positions of monthly purchases and sales, the authors calculate the level of HB and, by applying panel regressions with fixed and random effects, analyze the factors that determine this behavior, classifying them as agency, information, efficiency and behavioral problems.
Findings
The research establishes that among Chilean equity mutual funds, there is a herding of 2.8 percent, implying that for 100 funds trading a certain stock, 53 go in the same direction and 47 in another. This effect increases during widespread market dips and when stocks become fashionable, attracting market attention. This behavior is not merely spurious, associated with variables that predict returns, but also has an intentional component, related to agency problems and information, and a behavioral component, related to investors’ biases and beliefs.
Originality/value
The paper is original because, despite existing evidence of herding in international markets, it has been little quantified or studied in emerging markets. In addition, the literature does not distinguish between spurious and intentional HB, nor does it test different hypotheses jointly to explain the phenomenon.
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Nicolas Hardy, Nicolas S. Magner, Jaime Lavin, Rodrigo A. Cardenas and Mauricio Jara-Bertin
The purpose of this paper is to provide evidence about the effects of the MILA agreement in terms of improving financial market efficiency.
Abstract
Purpose
The purpose of this paper is to provide evidence about the effects of the MILA agreement in terms of improving financial market efficiency.
Design/methodology/approach
The authors measure efficiency by studying the stock reaction to earnings announcements using a conditional heteroscedasticity generalized autoregressive conditional heteroscedasticity-adjusted market model and the most commonly implemented event study tests for 3,399 events across four countries in the Latin American Integrated Market (MILA).
Findings
Contrary to expectations, the results show that the MILA agreement has isolated gains in terms of reaction to corporate earnings announcements, which translates into partial improvements in market efficiency. However, the evidence indicates that the MILA agreement favored cointegration, which is in line with other studies.
Practical implications
This paper provides evidence for policymakers and regulators that a stock market agreement is a condition that promotes market cointegration, but it is not an element that in itself ensures an improvement in market efficiency. To achieve greater MILA benefits, regulatory and market-level changes are required.
Originality/value
This is the first study that analyses the effect of a stock market agreement on the efficiency of markets, expanding on what has been studied in the finance literature regarding the influence of these agreements on cointegration.
Propósito
Esta investigación entrega evidencia sobre los efectos del acuerdo MILA respecto a mejoras en la eficiencia de los mercados accionarios involucrados.
Diseño/metodología/enfoque
Medimos eficiencia estudiando la reacción de los mercados accionarios tras anuncios de resultados utilizando un modelo de mercado ajustado por heteroscedasticidad condicional (GARCH). Además, consideramos las pruebas de estudios de evento más utilizadas en la literatura para 3,399 eventos en los 4 países involucrados en el acuerdo MILA.
Resultados
Contrario a lo esperado, los resultados muestran que el acuerdo MILA genera aumentos marginales en la reacción frente a anuncios corporativos, lo cual se traduce en mejoras parciales de la eficiencia de mercados accionarios. Sin embargo, la evidencia muestra que el MILA sí favorece a la cointegración, lo cual va en línea con estudios previos.
Implicancias prácticas
Esta investigación entrega evidencia para reguladores de que un acuerdo de integración bursátil promueve cointegración entre mercados, pero no es un elemento que por sí solo asegure una mejora en eficiencia. Para alcanzar mayores beneficios del acuerdo MILA, se requieren cambios adicionales a nivel de mercado accionario y de regulación.
Originalidad/valor
Este es el primer estudio que analiza el efecto de un acuerdo de integración bursátil en la eficiencia de los mercados accionarios, expandiendo lo que ha sido ya encontrado en la literatura financiera respecto a la influencia de estos acuerdos en cointegración.
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Jeffrey Glenn, Claire Chaumont and Pablo Villalobos Dintrans
The purpose is to understand the role of public leadership during the COVID-19 pandemic and advocate for a more active role of public health professionals in helping manage the…
Abstract
Purpose
The purpose is to understand the role of public leadership during the COVID-19 pandemic and advocate for a more active role of public health professionals in helping manage the crisis.
Design/methodology/approach
The authors use the framework developed by Boin et al. (2005) on crisis leadership. The authors focus on three of the core tasks – sense-making, decision-making and meaning-making – that are relevant to explain the role of public leaders during the ongoing crisis. The authors draw from the experience of three countries – Chile, France and the United States – to illustrate how these tasks were exercised with concrete examples.
Findings
Several examples of the way in which public leaders reacted to the crisis are found in the selected countries. Countries show different responses to the way they assessed and reacted to the COVID-19 as a crisis, the decisions taken to prevent infections and mitigate consequences, and the way they communicate information to the population.
Practical implications
A better understanding public leadership as a key for better crisis management, particularly for designing policy responses to public health crises. Public health leaders need to assume a more active role in the crisis management process, which also implies the emergence of a new class of public health leaders and a more prominent role for public health in the public eye.
Originality/value
The use of examples from three different countries, as well as the focus on the core leadership tasks during an ongoing crisis help not only assessing the crisis management but also extracting lessons for the coming months, as well as future public health emergencies. The three authors have a first-hand experience on the evolution of the crisis in their countries and the environment, since they are currently living and working in public health in Chile, France and the United States.
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This study examines how health-conscious consumers utilize nutrition facts panel labels when purchasing food products, focusing specifically on the dimension of ethical…
Abstract
Purpose
This study examines how health-conscious consumers utilize nutrition facts panel labels when purchasing food products, focusing specifically on the dimension of ethical evaluation. It aims to understand how ethical considerations influence the decision-making process of consumers who prioritize health. By analyzing the impact of ethical evaluation on label usage, the study sheds light on the significance of ethics in consumer behavior in the context of purchasing packaged edible oil.
Design/methodology/approach
Empirical data were collected using an online survey and a non-ordered questionnaire. In total, 469 valid responses were obtained. The study used SPSS version 27.0 and SmartPLS version 3 for demographic analysis and structural equation modeling.
Findings
The findings suggest that three factors – perceived benefits, perceived threats, and nutrition self-efficacy, positively impact the use of NFP labels. However, perceived barriers negatively influence the use of NFP labels. In additionally, ethical evaluation mediates the usage of NFP labels.
Practical implications
In the health belief model, ethical evaluation functions as a mediator and has a greater influence on NFP label use. This study provides a framework for marketers to promote consumer health consciousness by encouraging them to incorporate NFP labels.
Originality/value
This study is one of the first attempts to demonstrate that ethical evaluation mediate health beliefs and the use of nutrition labels.