Miracle-dz/UniFAR-FTUs huggingface dataset:
The Impact of Entrepreneur-CEOs on Company Performance

The purpose of this paper is to empirically examine the relationship between entrepreneur chief executive officers (CEOs) and firm performance. Based on the theoretical argument that microfinance entrepreneur-chief executive officers (CEOs) are “motivated agents” with a unique ability to hire and socialize mission-oriented staff, the paper develops a matched sample of 91 Pakistani firms and compared their performance using both accounting and market-based measures. Independent sample t-tests were used to empirically test the opposing predictions. Data were obtained from the PSX database and companies’ websites of sample firms. The results of the data analysis indicate that there is a statistically significant performance difference between entrepreneur-led and non-entrepreneurs led firms. Such performance difference is especially evident when the paper focusses on the accounting-and market based firm performance measures such as return on assets and Tobin’s q. Surprisingly, non-entrepreneurs led firms performed worse than those led by entrepreneur CEOs. The findings of the study provided empirical support for entrepreneur CEO impact on firm performance. The study makes an original contribution to the on-going research on strategic leadership by exploring the performance effect of entrepreneur CEOs and the corresponding alternative theoretical explanations.
Option-Implied Network Measures of Tail Contagion and Stock Return Predictability

The Great Financial Crisis of 2008 – 2009 has raised the attention of policy-makers and researchers about the interconnectedness among the volatility of the returns of financial assets as a potential source of risk that extends beyond the usual changes in correlations and include transmission channels that operate through the higher order co-moments of returns. In this paper, we investigate whether a newly developed, forward-looking measure of volatility spillover risk based on option implied volatilities shows any predictive power for stock returns. We also compare the predictive performance of this measure with that of the volatility spillover index proposed by Diebold and Yilmaz (2008, 2012), which is based on realized, backward-looking volatilities instead. While both measures show evidence of in-sample predictive power, only the option-implied measure is able to produce out-of-sample forecasts that outperform a simple historical mean benchmark.
Speculative Stock Price and Inadequacy of the Implied Cost of Capital as a Proxy for Expected Return

The implied cost of capital (ICC), the internal rate of return that equates speculative stock price to discounted expected future dividends, includes a mispricing-driven component in addition to expected return. The estimated relation of a mispricing-associated factor (X) with ICC is thus a potentially biased estimate of X’s relation with expected return because it captures X’s relation with both expected return and the mispricing-driven component. The sign of X’s relation with the mispricing-driven component switches between undervalued and overvalued stocks. It is unfeasible to calibrate the sign and magnitude of X’s relation with the mispricing-driven component. Existing methods do not seem able to address the bias resulting from X’s relation with the mispricing-driven component. Therefore, ICC is an inadequate proxy for expected return when examining the relation of a mispricing-associated factor with expected return, which evidence based on eleven mispricing-associated factors shows to be the case.
Concentrated Portfolios of Momentum Stocks

There exists abundant academic literature showing that momentum, i.e. a positive correlation between initial ranking of stocks by their past returns and subsequent returns, is pervasive across different markets and time periods. <br><br>Although recent criticism speculates on the disappearing of momentum returns, as-set managers have launched strategies to harvest the risk premia in form of well diversified equities funds based. In this research paper I delve deeper into the topic of the construction of concentrat-ed portfolios with less than 50 stocks. Based on monthly data for the US market universe I first investigate the consistency of momentum returns over the latest 20 years (1999-2019) with deciles analysis and then study the characteristics both of unconstrained and sector neutral concentrated portfolios. The empirical results show that momentum in the last decade (2010-2019), measured as the performance of a zero investment portfolio (long winners and short losers), is present but with minor intensity compared to the previous decade and that on the same period the top decile “long only” portfolio, built with previous winners’ stocks, still keeps beating the markets index with better Sharpe and Sortino ratios. <br><br>The results on concentrated portfolios, in particular portfolios with less than 10 stocks, show clear dependency on the given universe constituents, to make the analysis less dependent on particular universe constituents I propose to run the momentum strategy on 1000 random subsampled stocks universes and show empirically that the relation between the number of stocks in the portfolios and the corresponding performances is statistically significant monotonic (the less stocks the more performance). <br><br>Finally, I report that a sector neutral portfolio, i.e. a portfolio with the same number of stocks for each industrial sector, shows superior risk return characteristics than unconstrained ones. In the last 20 years a long only portfolio based on overlapping sector neutral sub-portfolios with 10 stocks each, gained an annualized return of 11.3% with a Sharpe ratio of 0.59, compared to a 6.00% and 0.24 for the MSCI USA and a 8.5% and 0.38 for the equal weighted benchmark. <br>
ROLE OF COMMUNICATION NETWORKS IN INTERGROUP CONFLICTS

The research background relates to the intergroup conflicts involving some street gangs in Johar Baru Sub District, Central Jakarta. Most of the street gangs in Johar Baru Sub District have each territory. Small matters from mocking one another, miscommunication to rumors which jeopardize the power of the street gangs, can trigger a serious thing: brawls with high fatality rate for several days. The research aims to analyze the pattern of rivalry and alliance network established among the street gangs. This study uses a quantitative approach. The research methods analyzed ego-centered communication networks. After analyzing the communication networks, the inter-group mapping was obtained and in turn, it would be useful as a means of a communication intervention to reduce and prevent inter-group conflicts. Data collection was carried out in a kind of a census towards 40 street gangs in Johar Baru Sub-District and it got the support of the in-depth interviews with several key informants. Research results shows: the communication networks analysis reveal that rivalry and alliance among the street gangs have positioned Gembrong street gang as the centre of rivalry and alliance with the radial communication pattern indices of low network density (10.71 for the rivalry network; 0.00 for the alliance network) and low network closure (0.10 for rivalry network and 0.00 for alliance network). This research contributes to identify which groups have a bigger role in intergroup conflicts.
A Dynamic Mechanism for Achieving Sustainable Quality Supply

We consider a supply network where a retailer sources from multiple economically weaker suppliers for a high-quality key material. The production of the material needs to comply with social and environmental standards over time. However, such compliance is costly, and the cost varies with privately observed dynamically changing environment (termed as the state), so the suppliers may cut corners, risking losing the ability to supply in the future. While retailer can invest to reduce the compliance cost, the investment outcome is uncertain. Therefore each party faces a trade-off between short-term gains/losses and long-term losses/gains. We present a dynamic model to capture these complexities and explore incentive mechanisms that enable all parties collaborate to achieve sustainable quality supply. We propose a sustainability index that reflects the supplier’s compliance status, and then construct a dynamic mechanism to achieve the first-best index in each period. The payments to the suppliers reflect both current and future states. This mechanism allows suppliers’ voluntary participation and induces truthful information exchange, self-enforcement, as well as first-best retailer investments. We show that the retailer commits and invests in a supplier only if the collaboration is longer than a certain contract length. Thus, we uncover situations where the support from the non-for-profit organizations is particularly valuable. Finally, we discuss additional strategies the retailer may adopt to scale up the program.
Smile-Implied Hedging with Volatility Risk

Options can be dynamically replicated using model-free Greeks extracted from the volatility smile. However, smile-implied delta and delta-gamma hedging do not achieve minimum variance in the presence of price-volatility correlation, and these strategies have shown poor performance relative to the Black-Scholes benchmark. We propose a way to extend smile-implied option replication with volatility risk management. Large-scale evidence on S&amp;P 500 index options indicates that smile-implied delta-gamma-vega hedging strategies outperform the Black-Scholes approach as well as more sophisticated option hedging frameworks including stochastic volatility and jumps.
Interactive Music for Multisensory E-Commerce: The Moderating Role of Online Consumer Involvement in Experiential Value, Cognitive Value, and Purchase Intention

Background music adds a multi-sensory element to marketing and e-commerce. Applying interactive sensory-enabling technologies (SETs) to online shopping websites is an area of interest of sensory marketing. This research examines interactive background music in ecommerce and investigates how online consumer involvement moderates the effects of interactive music. Single-factor experiments with three conditions (interactive music, static background music, and control) were conducted to investigate its impact on experiential value, cognitive value, and purchase intention of high- and low-involvement consumers among both students (Study 1, N = 251) and non-student samples (Study 2, N = 218). Different music genres were applied to stimuli of the two studies to demonstrate generalizability of the findings. Results find that interactive music enhances the experiential value of e-commerce for low-involvement consumers. By contrast, high-involvement consumers show greater purchase intention under the interactive music condition due to a heightened level of perceived cognitive value. Involvement is an effective predictor of elaboration and purchase intention under the interactive music condition, but not under the other two conditions. The contribution is twofold: <br><br>1) it shows the impact of music as an interactive SET and, <br><br>2) demonstrates the moderating role of consumer involvement in the context of multi-sensory integration in e-commerce. <br><br>Theoretical and practical implications are discussed along with limitations and directions for future research.
Does Government Debt Crowd Out Corporate Investment? A Bank Lending Channel

Bank loans are an important source of financing for governments, accounting for 19% of total public sector debt in EU countries. Using the French credit register over 2006-2018 and leveraging variation in public sector debt dynamics at the bank-location level, I show that increases in the demand for bank debt by public sector entities causally crowd out bank lending to private corporations. When public sector entities borrow an additional 1€ from the median bank, this bank lends 0.78€ less to the private sector, with sizeable effects on firm-level investment. My results suggest that crowding out effects may substantially reduce (local) fiscal multipliers.
Angel Investors: Do they Clone or Contrast?

The aim of this study is to analyse and compare the nature, behaviour and investment preferences of angel investors around the world. In order to get a better understanding of the emerging economies, a special emphasis was given on the Indian Angel market. Angel investors' detailed characterization and their investment preferences identified in this paper would help entrepreneurs fine-tune their fundraising strategies. Furthermore, this paper highlighted some key differences in angel investment trajectories in different economies. The transparent and mature angel markets encourage angel investors from diverse age groups, gender and educational backgrounds to participate actively. And the scattered angel investors in developed economies making diversified investments stimulate start-ups' balanced growth, both geographically and across all sectors. The findings show that there is significant heterogeneity among angel investors in emerging and developed economies that can be attributed to structural, economic, institutional, legal, and cultural differences between different economies. These findings would help policymakers promote a balanced and robust start-up ecosystem that facilitates angel investors' active participation and the resulting magnificent growth of entrepreneurship and economy.
Credit Rating and Stock Return Comovement

Firms with similar credit ratings, especially junk-rated ones, tend to comove strongly in stock returns with each other, which is not fully explained by their exposures to systematic factors. Following a firm’s downgrade into the junk-grade group, it tends to comove much more strongly in stock returns with firms in the junk-grade group and less with those in the investment-grade group. There is no similar trend in comovement with either credit rating group in the one-year window prior to the downgrade, indicating that changes in comovement are unlikely driven by changes in fundamentals of affected firms. Finally, we find evidence consistent with the investor clientele effect explanation for excessive comovement related to credit ratings by examining a) how mutual funds with different credit preferences adjust their stock holdings of firms being downgraded into junk-grade ratings and b) how flows to mutual funds that tend to invest in junk-rated firms affect these firms’ stock returns and their comovement.
Equipment as a Service: The Transition Towards Usage-Based Business Models

“Equipment as a service” is perhaps one of the most drastic examples of usage-based business model innovation (BMI) in the field today. To date, a systematic analysis of this phenomenon is lacking. This study aims to close this gap and develops a primer for usage-based BMI. Drawing on BMI theory and expert interviews, our contribution is three-fold: We clarify (1) why firms move towards usage-based business models, (2) what the main usage-based business model archetypes are, and (3) how shifting to these archetypes impacts business model components and innovates the business model. Our analysis identifies macro- and firm-level supply- and demand-side drivers and inhibitors which lead to four main usage-based business model archetypes: “Leasing Plus”, “Flexible Contracting”, “Renting/Sharing”, and “Performance Contracting”. The most radical model in terms of its supply-side risk-return profile is “Performance Contracting”. Evidence suggests that two groups of firms are particularly drawn to usage-based models: Firms in “young”, tech-enabled industries and firms in more mature or even declining industries. The former apply usage-based models as a proactive effort to push their products into the market. The latter do so as a defensive move to secure their market position and not lose customers with liquidity problems. Digitalization is likely to reinforce these developments.
Outsourcing without Cost Advantages

This paper explores the incentives of competing firms to outsource to a common supplier and shows that firms outsource even when the supplier does not have a cost advantage in input production. The suppliers contract offers generate cost asymmetry, alter product market competition, and improve the competitive position of one of its customers. The use of nonlinear contracts is crucial for the emergence of outsourcing. The supplier purposefully avoids industry profit maximization to enlarge its profits share. Both consumers and welfare benefit from the presence of an otherwise redundant supplier in the market.
Training, Knowledge, Competence, Performance: What Is the Relationship?

In-company training is not a temporary fashion of the last decades but a product of continuous development with the roots tracing back to ancient Egypt, where sons continued the crafting professions of their fathers and learned directly from them the required knowledge and competencies. In the second half of the 18th century, the industrial revolution caused rapid technology development and, with it, the rise of modern industrial enterprises. As a result, the demands on employee competencies have become more complex, and companies have become increasingly interested in developing the workforce under their own direction. These developments raise a critical question: How does employees´ participation in in-company training really impact performance? This research aims to analyze available theories on investment in in-company training, knowledge and competence formation, and performance of employees in the workplace as well as to explore empirical relations between these four variables. The findings show that the theoretical and methodological diversity of analyzed theories and empirical studies is quite large yet still limited. Numerous scientists have tried to explain relations between “training” and “employee performance” and to operationalize the latter. However, the relations and interdependencies between in-company training, knowledge, competence and performance of employees in the workplace have rarely, if ever, been explored thus far, and the economic efficiency of in-company training continues to be among the unknowns. The results of this first stage will be used to develop a theoretical framework for empirical research on the relationship between in-company training, knowledge, competence and performance of employees in the workplace.
How Leader’s Behavioral Integrity Affect Followers Commitment, Engagement, OCB, and Task Performance: The Role of Trust, Value Congruence, and Worthiness of being Followed.

This study highlights the importance of leader word deed alignment in shaping employee’s attitudes and behaviors. Leader Behavioral Integrity (BI) is defined as the perceived pattern of alignment between the leader’s words and deed. BI theory suggests that BI’s greater performance impact is due to the notion that BI affects communication clarity in addition to attitudes. Simons et. al. (2015) used meta-analysis to assess the impact of leader Behavioral Integrity (BI) on follower trust in leaders, organizational commitment, citizenship behavior (OCB), and in-role task performance. We modified Simon's framework by proposing that apart from trust, BI would also affect follower's outcomes through culminating follower perception of worthy of being followed (WBF), as well as Value Congruence among followers and the leader. Hence, these three factors would increase the follower's commitment. The high commitment would lead to job engagement. Better engagement would in turn lead to better task performance and OCB. Empirical validity was established by conducting a survey using a close-ended questionnaire. Data was collected from 316 employees from the Pakistani corporate sector and analyzed using confirmatory factor analysis and structured equation modeling. The results suggested that leader behavioral integrity (BI) has a significant and positive effect on Trust (T) as well as Value Congruence (VC) and follower perception worthy of being followed (WBF). The two factors i.e. T and WBF, in turn, seem to positively affect Organizational Commitment (OC). BI also seems to affect OC directly. Hence BI has a direct as well as an indirect effect on OC through the mediation of trust, and WBF. Moreover, OC seems to have a positive influence on both Job performance (JB), and Work Engagement (WE). JB is also impacted by WE. Higher performance and engagement also seem to affect organizational citizenship behavior (OCB) positively. behavioral integrity also has a direct and positive impact on performance, engagement, and OCB. The conclusions drawn from this study will help the leaders shape their behavior positively which will lead the followers to perform effectively and efficiently and thus enhancing the performance of the organization.
Active Technological Similarity and Mutual Fund Performance

Abstract We examine whether superior understanding of technological innovation is a source of mutual fund managers’ ability to garner positive abnormal returns. Consistent with our hypothesis, the inter-quintile annual net Carhart alpha spread for mutual funds sorted on changes in the technological similarity (TS) of their portfolio holdings is 282 basis points. Moreover, because changes in TS are largely orthogonal to other predictors of mutual fund success (e.g., industry concentration, active share, fund R 2, and lag fund alpha), changes in TS can be combined with other measures to help identify the best performing funds.
Financial Crisis and Determinants of Capital Structure of Investment Banking Sector in Pakistan

The aim of this paper is to add in the incumbent literature of capital structure by estimating the capital structure’s determinants of investment banking sector of Pakistan for the period of 2004-11 and the effect of the financial crisis (2007-08) on these determinants in deciding debt to equity choice on the firm level. This article utilizes the balanced panel econometric techniques for catering the said objectives. The previous works of notable scholars are thoroughly reviewed for capital structure. Similarly, the balanced panel econometric techniques are used for examining the implication of financial crisis on deciding for firm’s financing. The effect is estimated by dividing the sample period into two parts: pre (2004-06) and post (2009-11) financial crisis. The outcomes suggest that determinants of capital structure are the same as utilized in the advanced economies. Besides, this paper entails a strong evidence of financial crisis’ effect on capital structure’s determinants in investment banking sector of Pakistan. This paper produces a fresh outlook into determining the capital structure’s determinants from the perspective of investment banking sector of Pakistan. Secondly, this paper produces a valuable addition to the incumbent literature by determining the effect of the financial crisis on capital structure decision making based on the given determinants.