Tianyu Mo, Zhenlong Zheng and William T. Lin
Due to disequilibrium between supply and demand in the option market, the option market‐maker is under exposure to certain risks because of their net option positions. This paper…
Abstract
Purpose
Due to disequilibrium between supply and demand in the option market, the option market‐maker is under exposure to certain risks because of their net option positions. This paper aims to pay attention to whether the risk award affects the option price and the shape of implied volatility in the market‐maker system.
Design/methodology/approach
The paper first eliminates the part of implied volatility explained by underlying asset's stochastic volatility‐jump price process, and second sorts out market investors' net demand data from TAIEX Options tick by tick deal data and then finally considers three market maker's risks – unhedgeable risk, capital constrain risk and asymmetric information risk, and how they affect implied volatility's level and slope.
Findings
Through the research in the TAIEX Option market, the paper finds that, under unhedgeable risk, net demand pressure has a significant impact on implied volatility. Especially, unhedgeable risk due to underlying asset's stochastic volatility has the best explanation for implied volatility level, and unhedgeable risk due to underlying asset's jump can explain implied volatility slope to some extent. Capital constrain risk and asymmetric information risk have an insignificant impact on implied volatility.
Research limitations/implications
The findings in this study suggest that the risk award affects the option price and the shape of implied volatility in the market‐maker system and different risks have different effects on the level and slope of option implied volatility.
Practical implications
This paper finds the influence factors of the option price in the market‐maker system. It's useful for China's financial government and investors to learn the price tendency and regular pattern in the future China option market.
Originality/value
This is the first time that a net demand pressure based option pricing model is used, which is derived by Garleanu, Pedersen and Poteshman, to study the TAIEX Options' implied volatility. And the paper improves the methods eliminating the part of implied volatility explained by underlying asset's stochastic volatility‐jump price process.
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Changyu Wang, Tianyu Yuan and Jiaojiao Feng
The purpose of this study is to answer whether and how supervisor–subordinate instrumental or expressive ties based on enterprise social media (ESM) might enhance employee…
Abstract
Purpose
The purpose of this study is to answer whether and how supervisor–subordinate instrumental or expressive ties based on enterprise social media (ESM) might enhance employee performance.
Design/methodology/approach
Drawing on social exchange theory, this study developed a theoretical model to explore the influencing mechanism of different supervisor–subordinate ties based on ESM on employee job performance. The model was empirically tested through 219 ESM users.
Findings
The results revealed that supervisor–subordinate instrumental ties based on ESM play a positive role in employee job performance, while supervisor–subordinate expressive ties based on ESM are not significantly related to employee job performance. Supervisor–subordinate instrumental ties and expressive ties based on ESM can positively influence employee job performance through the mediating effect of organizational trust. Besides, perceived performance climate can weaken the relation of organizational trust to job performance, and then weaken the indirect relations via the mediating of organizational trust.
Originality/value
Our findings advance the understanding of ESM use through various underlying mechanisms and have the potential of guiding organizations to fine-tune their social media usage strategies.
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Yexin Zhou, Siwei Chen, Tianyu Wang and Qi Cui
This study analyzes the causal effect of education on consumers' cognition and attitudes toward genetically modified (GM) foods.
Abstract
Purpose
This study analyzes the causal effect of education on consumers' cognition and attitudes toward genetically modified (GM) foods.
Design/methodology/approach
The authors propose an analytical framework to clarify the role of education levels and education content in the formation of attitudes toward GM foods and utilize education reforms in China as natural experiments to test the theoretical predictions empirically. For education levels, the authors use Compulsory Education Law's implementation to construct the instrument variable. For education content, the authors utilize the revision of the biology textbook in the Eighth Curriculum Reform to implement staggered difference-in-difference estimation. The authors use two national household surveys, the China Genuine Progress indicator Survey (CGPiS) and the China Household Finance Survey (CHFS) of 2017, combined with provincial-level data of education reforms.
Findings
The education level, instrumented by the Compulsory Education Law's implementation, has an insignificant effect on consumers' cognition and attitudes toward GM foods, whereas the acquisition of formal education on genetic science, introduced by the Eighth Curriculum Reform, has a statistically significant and positive influence.
Originality/value
This is the first study to investigate the causal effects of education level and content on consumers' cognition and attitude toward GM foods using national representative data. It is also the first to evaluate the long-term effects of the biology textbook reform in China. The findings help open the black box of how education shapes people's preferences and attitudes and highlight the significance of formal biology education in formulating consumers' willingness to accept GM foods.
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Changyu Wang, Tianyu Yuan, Jiaojiao Feng and Xinya Peng
The purpose of this study is to explore the relationship between information overload and employees' workplace anxiety in the context of enterprise social media (ESM).
Abstract
Purpose
The purpose of this study is to explore the relationship between information overload and employees' workplace anxiety in the context of enterprise social media (ESM).
Design/methodology/approach
This study built a theoretical model to analyze the relationships among employees' perceptions of information overload on ESM, supervisor-subordinate instrumental and expressive ties on ESM and workplace anxiety. PLS-SEM was used to test the model through 219 questionnaires collected online.
Findings
The results revealed that information overload on ESM plays a positive role in employees' workplace anxiety. Supervisor-subordinate instrumental ties based on ESM can weaken the relationship between information overload and employees' workplace anxiety, but expressive ties can strengthen the positive relationship between information overload and workplace anxiety.
Originality/value
Little is known about whether information overload on ESM will affect employees' workplace anxiety and how leaders can mitigate this effect through ESM. Hence, this study developed a theoretical model and conducted an empirical study to open up a research opportunity to examine the relationships among information overload on ESM, supervisor-subordinate instrumental and expressive ties on ESM and employees' workplace anxiety. The study also has the potential to guide organizations in fine-tuning their social media usage strategies.