The author proposes an update to the mean variance (MV) framework that replaces a constant risk aversion parameter using a dynamic risk aversion indicator. The contribution to the…
Abstract
Purpose
The author proposes an update to the mean variance (MV) framework that replaces a constant risk aversion parameter using a dynamic risk aversion indicator. The contribution to the literature is made through making the static risk aversion parameter operational using an indicator of market sentiment. Results suggest that Sharpe ratios improve when the author replaces the traditional risk aversion parameter with a dynamic sentiment indicator from the behavioral finance literature when allocating between a risky portfolio and a risk-free asset. However, results are mixed when using the behavioral framework to allocate between two risky assets.
Design/methodology/approach
The author includes a dynamic risk aversion parameter in the mean variance framework and back test using the traditional and updated behavioral mean variance (BMV) framework to see which framework leads to better performance.
Findings
The author finds that the behavioral framework provides superior performance when allocating between a risky and risk-free asset; however, it under performs when allocating between risky assets.
Research limitations/implications
The research is based on back testing; therefore, it cannot be concluded that this strategy will perform well in real-time circumstances.
Practical implications
Portfolio managers may use this strategy to optimize the allocation between a risky portfolio and a risk-free asset.
Social implications
An improved allocation between risk-free and risky assets that could lead to less leverage in the market.
Originality/value
The study is the first to use such a sentiment indicator in the traditional MV framework and show the math.
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Todd Feldman and Gabriele Lepori
The purpose of this paper is to examine the debate on whether psychology affects asset prices using agent-based modeling.
Abstract
Purpose
The purpose of this paper is to examine the debate on whether psychology affects asset prices using agent-based modeling.
Design/methodology/approach
The authors set up three simulation regimes where the first regime contains fundamental investors who invest based on the mean-variance framework. The second regime includes purely irrational investors who invest based on behavioral biases. The third regime combines the two types of investors. The authors test whether the return properties from regime 3 converge to that of regime 1 or 2.
Findings
Results suggest that the type of irrationality affects return properties in different ways. Irrational investors who are introspective in their irrationality, only examining their performance and deficiencies, do not have much of a systematic effect on stock returns when combined with rational investors. However, irrational investors that aggregate information in an irrational manner have a systematic effect when combined with rational investors.
Research limitations/implications
Research implication of using simulation analysis is that the results need to be verified via other methods such as empirical and/or experimental analysis.
Practical implications
Practical implications of the research is that policy makers can look for factors that investors use to aggregate to better understand the movement of financial prices and ignore other factors.
Social implications
Social implication is that mass psychology impacts financial prices.
Originality/value
No other paper has used agent-based/behavioral analysis to better understand how different types of behavior may impact financial prices in different ways.
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Public administration, or the implementation of public policies by civil servants, will be central to implementing the Agenda 2030 Sustainable Development Goals. And yet, few…
Abstract
Purpose
Public administration, or the implementation of public policies by civil servants, will be central to implementing the Agenda 2030 Sustainable Development Goals. And yet, few American master of public administration (MPA) programs explicitly focus on sustainable development or sustainability literacy. This study asks whether it is possible to build professional sustainability literacy within a general MPA course, specifically in a course on quantitative methods.
Design/methodology/approach
Through a natural experiment conducted in three sections of the graduate course Quantitative Methods in Public Administration at UNC Wilmington, the study explores the relationship between student growth in professional sustainability literacy and a student’s level of foundational sustainability literacy, pro-environmental behavior, background knowledge in statistics and their interest in sustainable development within public administration.
Findings
The study finds that there is a statistically significant relationship between growth in a student’s professional sustainability literacy and two variables: above average foundational sustainability literacy and a high level of interest in sustainability policies and programs.
Originality/value
This study is the first to consider an embedded approach to sustainability education in the field of public administration.
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Florian Ritter, Anja Danner-Schröder and Gordon Müller-Seitz
In this study, the authors applied a routine dynamics perspective to examine how agile routines enhance efficiency while allowing flexibility in a world of flux. Hence, the…
Abstract
In this study, the authors applied a routine dynamics perspective to examine how agile routines enhance efficiency while allowing flexibility in a world of flux. Hence, the authors conducted an ethnographic case study in the IT sector, following a scrum team. The findings indicate that agile routines create affordances for addressing temporal orientations toward the past, present, and future. Within the scrum framework, each routine has a designed temporal orientation, such that the planning meeting is oriented toward the future. Actors enacted this single, temporal orientation through temporal demarcating patterns. However, in some instances, other temporal orientations conflicted with the dominant one. In those cases, actors enacted temporal integrating patterns that embraced multiple temporal orientations. The authors contribute to research on routine dynamics by demonstrating how (1) temporal demarcating enables organizational benefits, (2) temporal integrating enables learning from and anticipating problems, and (3) temporal spaces emerge within routine enactments to solve problems at hand.
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This paper developed a theoretical and research framework by identifying the behavioral biases in investment decision and by presenting a review of the available literature in the…
Abstract
Purpose
This paper developed a theoretical and research framework by identifying the behavioral biases in investment decision and by presenting a review of the available literature in the field of behavior finance-related biases. This paper aims to present a compressive review of the literature available in the public domain in past five decades on behavior finance and biases and its role in investment decision-making process. It also covers insights on the subject for developing a deeper understating of the behavior of investor and related biases.
Design/methodology/approach
The work follows the comprehensive literature review approach to review the available literatures. The review carried out on different parameters such as year of publication, journal of publication, country, type of research, data type, statistical technique used and biases identified. This is a funnel approach to decrease the number of behavior biases up to six for further research.
Findings
Most of the existing works have summarized behavior finance as an emerging area in finance. This indicates the limited valuable research in developing economy in this area. This literature review helps in identifying major research gap in this domain. It helps in identifying the behavior biases which work dominantly in investment decision-making. It would be interesting to explore the area of behavior biases and their impact on investment decision of individual investors in India.
Originality/value
This paper worked on literature prevailing on the subject and available on various online research data source and search engines. It covers a long time frame of almost five decades (1970-2015). This paper is an attempt to look at the impact of behavior finance and biases and its role in investment decision-making process of the investor behavior. This study builds up a strong theoretical framework for researchers and academicians by detailed demonstration of available literature on behavior biases.
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Ahmed Farouk Radwan and Engy M. Abou Sreea Khalil
This paper aims to assess the level of knowledge, attitudes and practices adopted among University of Sharjah (UOS) students toward sustainability efforts done by their university.
Abstract
Purpose
This paper aims to assess the level of knowledge, attitudes and practices adopted among University of Sharjah (UOS) students toward sustainability efforts done by their university.
Design/methodology/approach
An online survey was emailed to students with the assistance of the UOS Sustainability Office. The survey consisted of four sections assessing knowledge, attitudes, practices and preferred media to obtain sustainability information. A total of 200 responses from male and female students, representing 4 levels of study in sciences and humanities colleges, were received. Research data is analyzed using the IBM SPSS Statistics (version 26). For assessing knowledge, eight items were developed to measure if the student knew about the university’s projects and activities in the field of sustainability. For assessing attitudes, six items were developed to indicate the level of agreement or disagreement toward main sustainability issues. For assessing practices, ten items were developed to measure the frequency of acting in a sustainable manner.
Findings
Survey results showed an advanced level of basic knowledge among university students regarding the programs and activities conducted by UOS, and a positive attitude toward these efforts and toward the importance of supporting sustainable practices. Most of the participating students disagreed with limiting the use of cars on campus – this may be because of a cultural aspect among young people in the Emirati society, who consider driving cars as an essential part of their daily life. Most students also indicated that they care about the behavior that supports sustainability in the university environment, such as rationalizing water consumption and using environment friendly products.
Research limitations/implications
The study’s limitations are that it was applied to one university – UOS. The sample of the online survey was only 200 students from undergraduate students. Different universities may have their own sets of different environmental approaches, and because of this reason, university students may exhibit different levels of knowledge, attitude and practice toward sustainability in contrast to the findings from this study.
Practical implications
Findings from this research can give decision-makers a good picture of the university’s performance in accomplishing sustainability. The authors recommend that UOS sustainability communication programs should be more comprehensive, and not only limited to protecting the environment that some students perceive as the primary aspect of sustainability. These efforts must address all economic and social aspects emphasized by the United Arab Emirates 2030 Agenda for Sustainable Development.
Originality/value
To the best of the authors’ knowledge, the current study is considered one of the first studies addressing sustainability efforts in Emirati universities and seeking to assess the level of student knowledge, attitudes and practices toward sustainability issues in the country. The study is crucial in providing better insights such as the level of knowledge, attitude and practices toward UOS sustainability performance. As found in this study, even with sufficient knowledge, students still lack the drive to convert them into actions. So, future research could investigate deeper into the barriers of converting sustainable knowledge and attitudes into practices. The results represent an added value to the research literature concerned with sustainability issues in the Arab world and the Middle East region. This paper will also contribute to the sustainability literature that will be benefited by other various organizations.
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Seyeon Lee and Louise R. Manfredi
This paper aims to explore systematic strategies implemented at the School of Design, X University, to use materials more sustainably and responsibly in the design studios.
Abstract
Purpose
This paper aims to explore systematic strategies implemented at the School of Design, X University, to use materials more sustainably and responsibly in the design studios.
Design/methodology/approach
Printing and prototype fabrication are a vital facet of design education. These physical products which consume vast quantities of materials are key to evaluating ideas, and for training students to effectively communicate design intent to their professors and future clients. Despite the University’s initiatives for campus-wide sustainability efforts, waste generated from repeated design iteration is still a big problem in studio culture.
Findings
This effort between faculty, staff and students has initiated a sustained conversation about the excessive landfill waste generated by projects undertaken. Together, this paper aims to find ways in which the outcomes could be self-sustaining.
Originality/value
This research would be beneficial to anyone who plans to raise awareness and understanding of institutional waste management strategies at the university level.
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Brooke Hansen, Peter Stiling and Whitney Fung Uy
As the UN Sustainable Development Goals (SDGs) have been widely adopted since 2015, higher education institutions (HEIs) are experimenting with ways they can be measured, reported…
Abstract
Purpose
As the UN Sustainable Development Goals (SDGs) have been widely adopted since 2015, higher education institutions (HEIs) are experimenting with ways they can be measured, reported and incorporated into all realms of the university. In this process, the challenges of SDG integration into HEIs have become more evident, from lack of resources and sustainability literacy to having multiple disconnected programs that feature the SDGs.
Design/methodology/approach
A mixed methods approach using archival materials, literature reviews, interviews and participant observation has been adopted for a case study at a university in the process of adopting the SDGs in multiple areas.
Findings
The University of South Florida began with efforts to incorporate SDGs at the undergraduate level, such as the Global Citizens Project that brands both events and courses with SDGs. Institutional changes coupled with the launch of the Times Higher Education University Impact Rankings provided more opportunities to have broader conversations about SDGs in all areas of campus.