Social actors who move across categories are typically disadvantaged relative to their more focused peers. Yet candidates who compile experiences across disparate areas can either be appreciated as ...renaissance individuals or penalized as dilettantes. Extant literature has focused on the comparison between single versus multiple category members and on skill assessment, hindering its applicability. To discriminate between more versus less successful category spanners, I suggest that the order of accumulated experiences matters, because it serves as an indicator of commitment. I propose the concept of erraticism and predict that employers will prefer candidates who demonstrate some erraticism, by moving incrementally between similar jobs, over candidates who do not move and also over those with highly erratic job histories. Furthermore, I suggest this relationship holds for more complex jobs, less experienced freelancers, and is attenuated through working together. These issues are particularly salient given the rise of external labor markets where careers are increasingly marked by moves across traditional boundaries. I test and find support for these hypotheses with data from an online crowd-sourced labor market for freelancing services, Elance. com. I discuss how virtual mediated labor markets may alter hiring processes.
PurposeThe authors examine network features such as connectivity, centrality, adjacency matrices, closeness and betweenness measures through a variety of indicators. The results of the study indicate ...that over time there is a tendency for markets to integrate and segment due to various factors such as pandemics, financial crises, global trade relations and international investments.Design/methodology/approachThis paper employs a visualized network technique to study the dynamics of integration and comovements in global equity markets of emerging economies. Daily closing prices of stock market indices of 24 countries from January 2013 to July 2020 are used to construct a minimum spanning tree network (MSTN) and graph network (GN).FindingsThe authors identify India and China as global power hubs and clusters among the emerging economies. India and Bangladesh serve as bridging countries connecting to various other clusters. Bosnia serves as a center in the European region owing to Bosnia's trade relations with neighboring countries. Although Brazil has witnessed the worst recession in the early years of the decade, Brazil has risen to be a central cluster among the Latin American countries. Finally, the authors find that African countries tend to form links with the rest of the world rather than with economies within the Africa continent.Originality/valueThis is the pioneering study that uses network models such as MSTN and GN supplemented with measures of centrality and connectivity to study financial market integration in emerging countries. Against this backdrop, this paper aims to work on a network visualization strategy to examine global stock market integration. The authors also try to use graphs and the spanning trees instead of the correlation models to understand the association between the markets, avoiding the downsides of the existing models. The authors' approach tries to visualize the network integration to examine the interconnectedness in the global stock market.
What determines risk-bearing capacity and the amount of leverage in financial markets? Using unique archival data on collateralized lending, we show that personal experience can affect individual ...risk-taking and aggregate leverage. When an investor syndicate speculating in Amsterdam in 1772 went bankrupt, many lenders were exposed. In the end, none of them actually lost money. Nonetheless, only those at risk of losing money changed their behavior markedly; they lent with much higher haircuts. The rest continued largely as before. The differential change is remarkable since the distress was public knowledge. Overall leverage in the Amsterdam stock market declined as a result.
Purpose This study aims to examine the hedge, diversifier and safe-haven properties of bonds against infectious disease-related equity market volatility (IDEMV), like ...COVID-19.Design/methodology/approach The authors apply wavelet coherence methodology on the daily data of IDEMV and bond market (US, UK, Japan, Switzerland, Canada, Australia, Sweden, China and Europe) indices from 1 January 2000 to 14 February 2021.Findings The results show no significant co-movement between these bond indices and IDEMV, thus confirming that they serve as a hedge against IDEMV. However, during the turbulent period like COVID-19, the authors find that the US, UK, Japan, Switzerland, Canada, Australia, Sweden, China and European bond markets act as safe-haven against IDEMV, whereas the UK, US, Japan and Canadian bond markets demonstrate an in-phase and positive co-movement with IDEMV during COVID-19, suggesting their role as a diversifier.Research limitations/implications The study findings are important for investors and portfolio managers regarding risk management, portfolio diversification and investment strategies.Originality/value The authors contribute to the fast growing body of work on the financial impacts of COVID-19 as well as to ongoing consideration of whether a bond is a safe-haven investment.
Research into ‘market-shaping’ – the deliberate shaping by firms and other actors of market behavior, structures, expectations and practices – has primarily taken either system-level or micro-level ...practice perspectives. Instead, this research focuses on ‘collective market work’ – the orchestrated purposeful actions of a collaboration to shape a market. In synthesizing the social emergence paradigm and the institutional work framework, this study examines the different types of market work undertaken as a meso-level collective evolves. Drawing on primary and secondary data, this paper explores the historic case of a collaboration by small New Zealand wineries to gain acceptance of the screwcap closure on premium wine in the early 2000s. We find collective market work travels through three stages: ‘coalescing,’ ‘legitimizing,’ and ‘using market clout.’ Each stage functions as an intermediate frame within the market system, progressively enabling and emboldening the collaborators to take action and impact increasing numbers of larger actors and market gatekeepers.
•Market-shaping can be achieved by small market actors working together.•Small actors shape markets through ‘collective market work’.•Collective market work occurs through three stages.•Coalescing, Legitimizing, and Using Market Clout comprise collective market work.
Intermittent exporting is something of a puzzle, In theory, exporting represents a major commitment, and is often the starting point for further internationalization. However, intermittent exporters ...exit and subsequently re-enter exporting, sometimes frequently. We develop a conceptual model to explain how firm characteristics and market conditions interact to affect the decision to exit and re-enter exporting, and model this process using an extensive dataset of French manufacturing firms from 1997 to 2007. As anticipated, smaller and less productive firms are more likely to exit exporting, and react more strongly to changes in both domestic and foreign markets than larger firms. Exit and re-entry are closely linked. Firms with a low exit probability also have a high likelihood of re-entry, and vice versa. However, the way in which firms react to market conditions at the time of exit matters greatly in determining the likelihood of re-entry: thus re-entry depends crucially on the strategic rationale for exit. Our analysis helps explain the opportunistic and intermittent exporting of (mainly) small firms, the demand conditions under which intermittent exporting is most likely to occur, and the firm attributes most likely to give rise to such behavior.
In this study, we examine the efficiency of the US stock markets during the COVID-19 outbreak using a fundamental financial analysis approach, the constant growth model and a behavioral model ...including a Google-based Index. We juxtapose the released news and the performance of the US stock market during the COVID-19 outbreak and we show that during some periods the health risk was significantly underestimated and/or ignored. The Efficient Market Hypothesis (EMH) suggests that prices incorporate all the available information at any point in time, yet as we show a systemic factor, the health risk, was not always rationally incorporated in stock prices. The Runs-tests confirm our assumption that the market was not efficient during the examined period. The reason for this inefficiency could be that something is missing from traditional finance models, such as the impact of fear of COVID-19. For this reason we employ a Coronavirus Fear Index (CFI) based on Google searches and using Granger causality we provide empirical evidence that the fear drives the S&P500 performance, and using a GARCH model we show that the fear negatively influences the performance of the US stock market.
The emerging threat of climate change underscores the necessity for increased investments in renewable energy sources and hydrogen energy to enhance the transition towards a more sustainable and ...resilient future. This work presents a simple Linear Programming (LP) mathematical framework to ensure the optimal portfolio management and participation of an aggregator owning a Polymer Electrolyte Membrane (PEM) electrolyzer and renewable energy assets in the electricity, hydrogen and green certificates markets. The objective aims to maximize the aggregator's overall profits by optimally managing green certificates issuance and diminishing the curtailment of the renewable energy production. The proposed approach is applied to an illustrative case study, while additionally a number of scenarios are considered to account for fluctuations in electricity price and wind power production. Furthermore, the impact of expanding electrolyzer's power capacity from the aggregator's side is also investigated. The results obtained illustrate the impact of the above-mentioned scenarios on the optimal operation and profitability of the aggregator.
•Optimal scheduling of a RES-electrolyser aggregator in energy markets.•A novel concept for hourly management of available green certificates.•Wind power generation uncertainty greatly affects aggregator's scheduling decisions.•Aggregator optimally manages green certificates according to hourly prices.•Electrolyser power capacity expansion enhances aggregator's profitability.
This paper analyzes the impact of changes in monetary policy on equity prices, with the objectives of both measuring the average reaction of the stock market and understanding the economic sources of ...that reaction. We find that, on average, a hypothetical unanticipated 25-basis-point cut in the Federal funds rate target is associated with about a 1% increase in broad stock indexes. Adapting a methodology due to Campbell and Ammer, we find that the effects of unanticipated monetary policy actions on expected excess returns account for the largest part of the response of stock prices.
Hiring inexperienced workers generates information about their abilities. If this information is public, workers obtain its benefits. If workers cannot compensate firms for hiring them, firms will ...hire too few inexperienced workers. I determine the effects of hiring workers and revealing more information about their abilities through a field experiment in an online marketplace. I hired 952 randomly-selected workers, giving them either detailed or coarse public evaluations. Both hiring workers and providing more detailed evaluations substantially improved workers' subsequent employment outcomes. Under plausible assumptions, the experiment's market-level benefits exceeded its cost, suggesting that some experimental workers had been inefficiently unemployed.
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