Financial service providers find blockchain technology useful to enhance authenticity, security, and risk management. Several institutions are adopting blockchain in trade and finance systems to ...build smart contracts between participants, improve efficiency and transparency, and open up newer revenue opportunities. Blockchain’s unique recording capabilities make the existing clearing and settlement process redundant. Banks and other financial entities are adopting blockchain-enabled IDs to identify people. Better results come from organisations’ capacity to foresee emerging trends in financial blockchain applications and develop blockchain functionality. The transfer of asset ownership and addressing the maintenance of a precise financial ledger. Measurement, communication, and analysis of financial information are three significant areas to be focussed on by accounting professionals. Blockchain clarifies asset ownership and the existence of obligations for accountants, and it has the potential to improve productivity. This paper identifies and studies relevant articles related to blockchain for finance. This paper focuses on Blockchain technology and its importance for financial services. Further takes up various tools, strategies, and featured services in Blockchain-based financial services. Finally, the paper identifies and evaluates the significant applications of Blockchain technology in financial services. Credit reports significantly impact the financial lives of customers. Recent data breaches demonstrate the superior security of blockchain-based credit reporting over conventional server-based reporting. Blockchain-based systems enable the faster, more cost-effective, and more customised issuance of digital securities. With its adoption, the market for investors can be expanded, costs for issuers can be reduced, and counterparty risk can be reduced due to the ability to customise digital financial instruments to the demands of investors. It uses mutualised standards, protocols, and shared procedures to give network users a single common source of truth. Participants in the business network can now more easily collaborate, manage data, and agree with this technology’s application.
This inductive study offers an examination of 23 cases in which informants from firms engaged in large-scale global projects reported unforeseen costs after failing to comprehend cognitive-cultural, ...normative, and/or regulative institutions in an unfamiliar host societal context. The study builds on the conceptual framework of institutional theory. The findings, which include propositions and a generic narrative model, contribute to theoretical knowledge of how institutional exceptions arise, how they are resolved, and how they typically involve three general phases: ignorance, sensemaking, and response. The findings also articulate the kinds of institutional transaction costs that an entrant incurs in each of the three phases, and the conditions that lead to the growth of these costs.
•The effect of sustainable shipping practice (SSP) on shippers’ loyalty is examined.•Perceived value, social exchange, and transaction cost theories are applied.•The effect of SSP on loyalty is ...fully-mediated by value.•The effect of value on loyalty is partially-mediated by trust and transaction cost.
This study investigates the role of perceived value, trust, and transaction cost in mediating the effect of sustainable shipping practices (SSP) on shippers’ loyalty. Theoretical and alternative models were proposed and compared using survey data collected from 289 shippers. The results show that the relationship between SSP and shippers’ loyalty is mediated by shippers’ perceived value of SSP, shippers’ trust in a shipping company’s commitment towards sustainability, and sustainability-related transaction cost. This study offers an alternative theoretical explanation to the relationship and provides important managerial insights to strengthen shippers’ loyalty through implementing SSP.
The opportunistic behavior of parties in the supply chain leads to resource wastages. Information asymmetry and the opportunistic behavior of transacting parties in supply chains squanders the ...intended benefits of supply chain integration (SCI). Literature suggests that reducing information asymmetry between transacting organizations will curb their opportunistic behavior. This study investigates the SCI between the hauliers and the container depots. The hauliers provide the transportation of containers for the shippers and consignees to and from the depots. Transaction Cost Economics (TCE) underpins the conceptual framework. The supply environment which embodies transaction cost economics attributes is expected to affect SCI and SCI is expected to affect operational efficiency and subsequently environmental performance. Business process is anticipated to moderate the impact of SCI on operational efficiency by reducing information asymmetry and curbing opportunistic behavior. Responses from 84 haulier companies were analyzed using partial least squares, structural equation modeling. Results indicate strong support for almost all transaction cost economics propositions. However, transaction cost economics suggests that transaction attributes have a linear relationship with SCI, though findings from this study indicate that it could be curvilinear. Results confirm that strengthening of business process between hauliers and depots could strengthen the SCI positive impact on hauliers' performance and subsequently their environmental performance. Stronger SCI can reduce cost and increase revenue and at the same time, reduce the greenhouse-gas emissions of the hauliers. Findings support that economic gains and environmental protection can be complementary and can be attained by curbing the opportunistic behavior of organizations in supply chains.
•The opportunistic behavior of parties transacting in supply chain leads to resource wastages.•This study is grounded on Transaction Cost Economics propositions which are rare in supply chain integration research.•Supply environment affects supply chain integration and subsequently operational efficiency and environmental performance.•Business process moderates the SCI effects and reduces information asymmetry between transacting organizations.•Curbing the opportunistic behavior of transacting parties could protect the environment.
•The adaptive online moving average method is designed to predict returns of assets.•The net profit maximization model with transaction cost is constructed.•The adaptive online net profit ...maximization algorithm is proposed.•Multiple numerical experiments are conducted on real benchmark data sets.
As an application of machine learning techniques in financial fields, online portfolio selection has been attracting great attention from practitioners and researchers, which makes timely sequential decision making available when market information is constantly updated. For online portfolio selection, transaction costs incurred by changes of investment proportions on risky assets have a significant impact on the investment strategy and the return in long-term investment horizon. However, in many online portfolio selection studies, transaction costs are usually neglected in the decision making process. In this paper, we consider an adaptive online portfolio selection problem with transaction costs. We first propose an adaptive online moving average method (AOLMA) to predict the future returns of risky assets by incorporating an adaptive decaying factor into the moving average method, which improves the accuracy of return prediction. The net profit maximization model (NPM) is then constructed where transaction costs are considered in each decision making process. The adaptive online net profit maximization algorithm (AOLNPM) is designed to maximize the cumulative return by integrating AOLMA and NPM together. Numerical experiments show that AOLNPM dominates several state-of-the-art online portfolio selection algorithms in terms of various performance metrics, i.e., cumulative return, mean excess return, Sharpe ratio, Information ratio and Calmar ratio.
Corruption in international business Cuervo-Cazurra, Alvaro
Journal of world business : JWB,
January 2016, 2016-01-00, 20160101, Letnik:
51, Številka:
1
Journal Article
Recenzirano
I analyze corruption in international business, presenting a critical assessment of the topic and providing suggestions for future research. I argue that corruption creates a laboratory for expanding ...international business studies because its illegal nature, the differences in perception about illegality, and the variation in the enforcement of laws against bribery across countries challenge some of the assumptions upon which arguments have been built, i.e., that managers can choose appropriate actions without major legal implications. Hence, I first provide suggestion for how to analyze the topic of corruption in future studies by analyzing the types, measures, causes, consequences, and controls of corruption. I then provide suggestions for how to extend leading theories of the firm by using corruption as a laboratory that challenges some of the assumptions of these theories: extending agency theory by analyzing the existence of unethical agency relationships; extending transaction cost economics by analyzing illegal transaction costs minimization; extending the resource-based view by studying corporate social irresponsibility capability; extending resource dependency by analyzing the ethical power escape; and extending neo-institutional theory by studying illegal legitimacy.
•The equity of a risky business is modelled with a Brownian motion (with a drift).•Surplus is distributed through “dividends”, subject to fixed transaction costs.•Dividends are either regular or ...extraordinary, with different transaction costs.•We determine which dividend types are optimal, depending on surplus dynamics.
In this paper, we model the cash surplus (or equity) of a risky business with a Brownian motion (with a drift). Owners can take cash out of the surplus in the form of “dividends”, subject to transaction costs. However, if the surplus hits 0 then ruin occurs and the business cannot operate any more.
We consider two types of dividend distributions: (i) periodic, regular ones (that is, dividends can be paid only at countably many points in time, according to a specific arrival process); and (ii) extraordinary dividend payments that can be made immediately at any time (that is, the dividend decision time space is continuous and matches that of the surplus process). Both types of dividends attract proportional transaction costs, but extraordinary distributions also attract fixed transaction costs, which is a realistic feature. A dividend strategy that involves both types of distributions (periodic and extraordinary) is qualified as “hybrid”.
We determine which strategies (either periodic, immediate, or hybrid) are optimal, that is, we show which are the strategies that maximise the expected present value of dividends paid until ruin, net of transaction costs. Sometimes, a liquidation strategy (which pays out all monies and stops the process) is optimal. Which strategy is optimal depends on the profitability of the business, and the level of (proportional and fixed) transaction costs. Results are illustrated.
Relationship Governance Dynamics Wathne, Kenneth H.; Heide, Jan B.; Mooi, Erik A. ...
Journal of marketing research,
10/2018, Letnik:
55, Številka:
5
Journal Article
Recenzirano
Odprti dostop
The article studies interfirm governance in the context of supplier–reseller relationships. Using a longitudinal study, the authors examine the roles of supplier selection efforts and mutual specific ...investments with respect to (1) motivating a supplier to make incremental investments and (2) safeguarding these investments from supplier ex post transaction costs. The authors also examine the joint effects of selection efforts and mutual investments on supplier ex post transaction costs. From a practical standpoint, the findings suggest guidelines for channel strategy. Theoretically, they provide new insights into relationship dynamics, including evidence regarding the effects of a firm's governance choices over time.
We show that labor market transaction costs explain why the smallest farms are more efficient than slightly larger farms in most low-income countries and that increases in machine capacity with ...operational scale result in the globally observed rising upper tail of productivity. We find evidence consistent with these mechanisms using Indian data, and we show that if all Indian farms were at the minimum scale required to maximize the return on land, the number of farms would be reduced by 82% and income per farm worker would rise by 68%.
Model Comparison with Transaction Costs DETZEL, ANDREW; NOVY‐MARX, ROBERT; VELIKOV, MIHAIL
The Journal of finance (New York),
June 2023, Letnik:
78, Številka:
3
Journal Article
Recenzirano
Odprti dostop
ABSTRACT
Failing to account for transaction costs materially impacts inferences drawn when evaluating asset pricing models, biasing tests in favor of those employing high‐cost factors. Ignoring ...transaction costs, Hou, Xue, and Zhang (2015, Review of Financial Studies, 28, 650–705) q‐factor model and Barillas and Shanken (2018, The Journal of Finance, 73, 715–754) six‐factor models have high maximum squared Sharpe ratios and small alphas across 205 anomalies. They do not, however, come close to spanning the achievable mean‐variance efficient frontier. Accounting for transaction costs, the Fama and French (2015, Journal of Financial Economics, 116, 1–22; 2018, Journal of Financial Economics, 128, 234–252) five‐factor model has a significantly higher squared Sharpe ratio than either of these alternative models, while variations employing cash profitability perform better still.
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