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DESPITE AMPLE EVIDENCE THAT CUSTOMERS EXHIBIT HIGHER DISCOUNT RATES THAN FIRMS, IT IS NOT CLEAR HOW DIFFERENCES IN DISCOUNT RATES AFFECT OPTIMAL PRICES, PROFITS, AND WELFARE OF COMPLEMENTARY PRODUCTS (WHICH COULD BE GOODS OR SERVICES). WE SHOW FOR COMPLEMENTARY PROUCTS THAT HIGHER DISCOUNT RATES OF CUSTOMERS DO NOT INCREASE PROFIT OR CONSUMER SURPLUS. FIRMS, INCLUDING BANKS, WOULD BE ADVISED TO SEEK TO REDUCE EXCESSIVE DISCOUNT RATES AMONG CONSUMERS.
AS WE INCREASINGLY RELY ON SEARCH ENGINES AS AN IMPORTANT SOURCE OF INFORMATION TO SUPPORT OUR DECISIONS, SEARCH ENGINES BECAME AN IMPORTANT VENUE FOR FIRMS TO ATTRACT ATTENTION AND SECURE THE LONGEVITY OF THEIR OPERATIONS. THIS ARTICLE DISCUSSES THE RESULTS OF OUR EMPIRICAL STUDIES ON HOW TO CAPTURE A FIRM’S VISIBILITY IN ORGANIC SEARCH AND HOW IT AFFECTS ITS SHORT- AND LONG-TERM FINANCIAL PERFORMANCE.
TO INCREASE THE INFORMATION SECURITY AWARENESS AMONG THEIR WORKFORCE AND TO ACHIEVE SECURE INFORMATION SYSTEMS, DECISION-MAKERS EMPLOY MEASURES OF INFORMATION SECURITY, SUCH AS SECURITY POLICIES OR ASSOCIATED TRAINING AND EDUCATIONAL PROGRAMS. HOWEVER, THESE MEASURES MIGHT STRESS EMPLOYEES. THIS IS TRUE IF, FOR INSTANCE, INFORMATION SECURITY MEASURES ARE PERCEIVED AS DIFFICULT TO UNDERSTAND, AS AN INVASION OF PRIVACY, OR IF THEY GIVE RISE TO CONFLICTS OF INTEREST. CONSEQUENTLY, A MULTI-FACETED PERSPECTIVE ON EMPLOYEES' STRUGGLE WITH INFORMATION SECURITY IS DISCUSSED.
GAMESTOP, A COMPANY THAT WAS PRESUMED DEAD DUE TO SHRINKING PROFITS OFITS BRICK-AND-MORTAR BUSINESS MODEL, HIT THE HEADLINES BECAUSE OF ASHORT SQUEEZE OF ITS STOCK PRICE. THE POPULAR OPINION REPORTED BY MAIN-STREAM MEDIA SUGGESTED THAT THE GAMESTOP FRENZY WAS EXCLUSIVE TO YOUNGAND INEXPERIENCED INVESTORS GATHERING ON THE SOCIAL MEDIA PLATFORMREDDIT. IN CONTRAST, OUR RESULTS INDICATE THAT ALSO MORE EXPERIENCEDRETAIL INVESTORS IN GERMANY PARTICIPATED.
THE PRICE-TO-EARNINGS (P/E) RATIO IS ONE OF THE MOST IMPORTANT METRICS FOR VALUING FIRMS. UNFORTUNATELY, INTERPRETATIONS OF HIGH-GROWTH FIRMS’ P/E RATIOS CAN BE CHALLENGING, BECAUSE THEY FREQUENTLY EXHIBIT EITHER EXTREMELY HIGH OR NEGATIVE VALUES. WE SHOW THAT THE USE OF CUSTOMER METRICS ALLOWS FOR BETTER INTERPRETING THESE P/E RATIOS, THAT IMPROVEMENTS IN CUSTOMER METRICS HAVE NON-INTUITIVE AND SURPRISING EFFECTS ON THE P/E RATIO, AND THAT OUR NEW MODEL BETTER PREDICTS FUTURE P/E RATIOS THAN EXISTING MODELS.
The growing role of IT in real estate asset management – the appraisal process as a master sample
(2014)
UNDERSTANDING HOW HOUSEHOLDS REACT TO THE ARRIVAL OF PERMANENT AND TRANSITORY INCOME IS OF INTEREST FOR RESEARCHERS AND REGULATORS. PREVIOUS STUDIES HAD TO USE IMPRECISE SURVEY DATA TO MEASURE CONSUMPTION AND THUS CONCLUSIONS OFTEN DIVERGED. WE LEVERAGE GRANULAR PERSONAL FINANCE MANAGEMENT FINTECH DATA TO TEST FRIEDMAN'S PERMANENT INCOME HYPOTHESIS AND TO ASSESS HOUSEHOLD SPENDING ELASTICITY AND MARGINAL PROPENSITY TO CONSUME FOR VARIOUS SPENDING CATEGORIES IN RESPONSE TO DIFFERENT INCOME TYPES.
INDUSTRIALIZATION TENDENCIES WITHIN THE CREDIT BUSINESS ARE IN PARTS BROADER SOPHISTICATED THAN WITHIN FINANCIAL PROCESSES OF OTHER INDUSTRIES. CREDIT PROCESS MANAGERS OF BANKS ESTIMATE ECONOMIES OF SCALE AND SKILL ACHIEVABLE BY OUTSOURCING TO BE HIGHER THAN CHIEF FINANCIAL OFFICERS OF NON-BANKS DO. FURTHERMORE, ECONOMIES OF SCOPE, WHICH INHIBIT SELECTIVE SOURCING, ARE EVALUATED AS LESS PROBLEMATIC.
This study explores high-frequency cross-asset lead-lag relationships for various market microstructure dimensions. Utilizing data from stocks, futures, and exchange traded products, the findings uncover significant lead-lag patterns, particularly among fundamentally related instruments. Our results demonstrate that knowledge about lead-lag relationships can be leveraged for forecasting short-term changes in financial markets.
THE BLOCKCHAIN TECHNOLOGY ENABLES ENTITIES TO QUERY AND ALTER INFORMATION WITHOUT TRUSTING A MIDDLE PARTY WHILE PROVIDING A SECURE DATA STORAGE IN A DECENTRALIZED MANNER. WE FOCUS ON AN IT DATA SUPPLY CHAIN SCENARIO WHERE MULTIPLE ACTORS NEGOTIATE A TENANCY AGREEMENT FOR VIRTUALIZED NETWORK RESOURCES. WE PRESENT OUR APPROACH, A BROKERLESS BLOCKCHAIN-BASED SYSTEM THAT USES SMART CONTRACTS AND A VIRTUAL NETWORK PARTITIONING ALGORITHM. WITH THIS APPROACH WE CAN OVERCOME THE INFORMATION DISCLOSER PROBLEM IN THIS SCENARIO.
THIS STUDY INVESTIGATES WHAT HAPPENS WHEN RETAIL CUSTOMERS ARE OFFERED FREE AND UNBIASED ADVICE. USING A LARGE FIELD EXPERIMENT IT SHOWS THAT THOSE WHO ACCEPT THE OFFER (5%) ARE MORE LIKELY TO BE MALE, OLDER, WEALTHIER, MORE EXPERIENCED AND MORE FINANCIALLY SOPHISTICATED. HOWEVER, EVEN THOUGH THE ADVICE WOULD HAVE HELPED, IT ACTUALLY LARGELY FAILED TO HELP BECAUSE THE CUSTOMERS DID NOT LISTEN TO IT. OVERALL, OUR RESULTS SUGGEST THAT THE MERE AVAILABILITY OF UNBIASED FINANCIAL ADVICE IS A NECESSARY BUT NOT SUFFICIENT CONDITION FOR BENEFITING RETAIL CUSTOMERS.
RECENTLY, PASSIVE ETFS AND INDEX FUNDS HAVE BECOME POPULAR AMONG INDIVIDUAL INVESTORS. IN OUR STUDY, WE INVESTIGATE WHETHER INDIVIDUAL INVESTORS BENEFIT FROM USING THEM. WITH DATA FROM ONE OF THE LARGEST BROKERAGES IN GERMANY, WE FIND THAT INDIVIDUAL INVESTORS WORSEN THEIR PORTFOLIO PERFORMANCE AFTER USING THESE PRODUCTS IN COMPARISON TO NON-USERS. SINCE THESE SECURITIES MAKE MARKET TIMING EASIER, FURTHER ANALYSIS REVEALS THAT THE DECREASE IN USERS’ PORTFOLIO PERFORMANCE IS PRIMARILY DUE TO BAD MARKET TIMING.
RECENTLY, A NEW CLASS OF SYSTEMS FOR SHARED AND COLLABORATIVE DATA MANAGEMENT HAS GAINED MORE AND MORE TRACTION. IN CONTRAST TO CLASSICAL DATA BASE MANAGEMENT SYSTEMS (DBMS), SYSTEMS FOR SHARED DATA NEED TO PROVIDE ADDITIONAL GUARANTEES TO ENSURE THE INTEGRITY OF DATA AND TRANSACTION EXECUTION. IN THIS PAPER, WE PRESENT TRUSTDBLE, A NEW DBMS THAT EXTENDS THE ACID PROPERTIES (I.E., ATOMICITY, CONSISTENCY, ISOLATION, DURABILITY) USED BY CLASSICAL DBMSS WITH A NEW VERIFIABILITY COMPONENT TO ADDRESS THESE NEW REQUIREMENTS.
BANK INSTABILITY SEEMINGLY COULD PUSH BORROWERS TO USE CROWDFUNDING AS A SOURCE OF EXTERNAL FINANCE. WE CONSTRUCT A NOVEL, HAND-COLLECTED DATA SET OF VENTURES' USES OF EQUITY CROWDFUNDING IN GERMANY, THEIR RELATIONSHIPS WITH BANKS, AND VARIOUS VENTURE TRAITS SINCE 2011. BY OBSERVING VENTUREBANK RELATIONSHIPS, WE CAN IDENTIFY IF VENTURES CONNECTED TO SHOCKED BANKS ARE MORE LIKELY TO USE CROWDFUNDING IN AN ATTEMPT TO SUBSTITUTE FOR CONTRACTING BANK CREDIT SUPPLY. OUR RESULTS SHOW THAT CROWDFUNDING IS SIGNIFICANTLY MORE LIKELY FOR NEW VENTURES THAT INTERACT WITH STRESSED BANKS. INNOVATIVE FUNDING SOURCES ARE THUS PARTICULARLY RELEVANT IN TIMES OF STRESS AMONG CONVENTIONAL FINANCIERS. BUT CROWDFUNDED VENTURES ARE GENERALLY ALSO MORE OPAQUE AND RISKY THAN NEW VENTURES THAT DO NOT USE CROWDFUNDING.
UNDER LAISSEZ-FAIRE REGULATION, REGULATORS CHOOSE NOT TO INTERFERE BECAUSE THEY SEEK TO STIMULATE INNOVATION AND PROTECT ENTERPRISES FROM THE COSTS IMPOSED BY REGULATORY COMPLIANCE. YET, EMPIRICAL EVIDENCE REGARDING THE ABILITY OF LAISSEZ-FAIRE REGULATION TO ENSURE CONSUMER PROTECTION IS LACKING. THIS ARTICLE TESTS EMPIRICALLY WHETHER THE CURRENT LAISSEZ-FAIRE REGULATION OF PRICE ADVERTISING CLAIMS ON THE MOST POPULAR REWARD-BASED CROWDFUNDING PLATFORM, KICKSTARTER, IS SUFFICIENT TO PROTECT CONSUMERS.
ENTREPRENEURS OFTEN OVERESTIMATE THE LIKELIHOOD OF SUCCESS WHEN PLANNING THEIR OWN ACTIVITIES, WHICH USUALLY RESULTS IN EXCESS MARKET ENTRY. SINCE ENTREPRENEURS CONSIDER THEIR PROJECT AS UNIQUE, THE FORECASTS OF THE FUTURE OUTCOME ARE OFTEN ANCHORED ON THE CASE AT HAND RATHER THAN ON PAST RESULTS OF COMPARABLE PROJECTS – A PHENOMENON KNOWN AS THE PLANNING FALLACY. WE INVESTIGATE WHETHER ENTREPRENEURS SUFFER FROM A PLANNING FALLACY BIAS WHEN PROVIDED WITH HISTORICAL OUTCOMES OF COMPARABLE PROJECTS AND ITS CONSEQUENCES.
ALMOST 20% OF THE GERMAN POPULATION CURRENTLY HOLDS A CONSUMER LOAN. DESPITE ITS OBVIOUS IMPORTANCE FOR A PRIVATE HOUSEHOLD’S BALANCE SHEET, WE KNOW SURPRISINGLY LITTLE ABOUT IT. ONE PURPOSE OF THIS STUDY IS TO GIVE AN OVERVIEW OF THE GERMAN CONSUMER/INSTALLMENT LOAN MARKET. WE COMPARED FIVE WIDELY ACCEPTED DATA SOURCES AND FOUND DIFFERENCES IN THE LOAN PARTICIPATION RATE, EVEN ON AN AGGREGATED NATIONWIDE LEVEL. IN A SECOND STEP, WE TRY TO FIND REASONS FOR EXTRAORDINARY HIGH GROWTH RATES AMONG SENIORS’ DEBT PARTICIPATION RATES.
The uphill challenge
(2017)
THIS STUDY DOCUMENTS THE ROLE OF BARGAINING POWER IN THE DETERMINATION OF
MORTGAGE RATES BASED ON A UNIQUE ADMINISTRATIVE DATA SET COMPRISING 20,000
MORTGAGE LOAN CONTRACTS. WE USE VARIATION IN THE COMPETITIVE ENVIRONMENT
TO IDENTIFY THE EXTENT TO WHICH DIFFERENTIAL PRICING IS DUE TO RELATIVE BARGAINING POWER. OUR IDENTIFICATION STRATEGY SEPARATES MARKET POWER FROM OTHER SOURCES OF PRICING DIFFERENTIALS, SUCH AS CREDIT RISK, PRODUCT DIFFERENTIATION, OR OTHER COSTS. THE RESULTS INDICATE THAT BARGAINING POWER DETERMINES THE EXTENT OF PRICE DISCRIMINATION ON OBSERVABLE BORROWER CHARACTERISTICS. A REDUCTION IN LENDER BARGAINING POWER REDUCES THE DISADVANTAGE SUFFERED BY BORROWERS WHO REFINANCE THEIR LOAN AND REDUCES THE ADVANTAGE FOR THOSE WHO HAVE THEIR MAIN BANKING RELATIONSHIP AT ANOTHER BANK. SIMULTANEOUSLY, IT INCREASES THE ADVANTAGE FOR BORROWERS FALLING IN THE WEALTHY/HIGH-INCOME SEGMENT. FURTHER ANALYSES POINT TO SEARCH INCENTIVES AS AN IMPORTANT DRIVER OF THE DIRECTION OF THE EFFECT OF BARGAINING POWER.
IN THE CURRENT REGIME OF LOW INTEREST RATES, TAKING SOUND SAVINGS DECISIONS POSES A SIGNIFICANT CHALLENGE TO MOST INDIVIDUALS. FUND SAVINGS PLANS ALLOW TO ACCUMULATE PRIVATE SAVINGS VIA AUTOMATED RECURRING INVESTMENTS IN SELECTED FUNDS. LOW FEES AND SMALL MINIMUM INVESTMENT AMOUNTS MAKE THEM A SUITABLE SAVINGS VEHICLE ALSO FOR LOW NET-WORTH INDIVIDUALS. WHILE TRADITIONAL FINANCIAL ADVISORS ONLY RELUCTANTLY PROVIDE ADVICE ON SMALL-SCALE INVESTMENTS, THE RECENT SURGE OF ROBO-ADVISORS ENABLES ACCESS TO ADVICE ON SAVINGS PLAN CHOICES FOR INVESTORS FROM ALL WEALTH BANDS. IN THIS REPORT, WE PRESENT EMPIRICAL RESULTS ON THE IMPACT OF INTRODUCING AN AUTOMATED INVESTMENT TOOL AT A LARGE GERMAN ONLINE BANK ON PRIVATE INVESTORS’ SAVINGS DECISIONS.
ON JUNE 18TH, WIRECARD’S SHARE PRICE PLUMMETED BY MORE THAN 60% FOLLOWING THE FIRM’S ADMISSION OF BEING SUBJECT TO “ENORMOUS FRAUD” AND BILLIONS OF EUROS MISSING. THIS REPORT DOCUMENTS GERMAN RETAIL INVESTORS’ RESPONSE AND FINDS THAT THE POPULARITY OF WIRECARD AMONG RETAIL INVESTORS LED TO SUBSTANTIAL LOSSES IN THEIR PORTFOLIOS. THESE LOSSES WERE EXACERBATED BY STRONG BUYING SENTIMENT AFTER THE ANNOUNCEMENT. THE FAILING STOCK WAS PURCHASED BY INVESTORS ALREADY ENGAGED IN IT AS WELL AS NON-EXPOSED CUSTOMERS.
THE EUROPEAN POST-TRADING LANDSCAPE IS RECENTLY CHANGING FUNDAMENTALLY DUE TO THE FINANCIAL CRISIS, REGULATORY ACTIONS, AND THE STRONG LINKAGE OF GLOBAL FINANCIAL MARKETS. THE SYSTEMIC IMPORTANCE OF POST-TRADING INFRASTRUCTURES UNDERLINES THE INDUSTRY’S SIGNIFICANT DEPENDENCE ON SAFE AND EFFICIENT RISK MANAGEMENT PROCESSES. USING THE DELPHI METHODOLOGY IN A STUDY AMONG A MULTITUDE OF EXPERTS FROM DIFFERENT AREAS OF POST-TRADING, WE TRIED TO DEVELOP A JOINT AND COHERENT VIEW OF THE MOST IMPORTANT ISSUES FOR THE EUROPEAN POST-TRADING SYSTEM IN THE NEAR FUTURE.
Regulatory impact analysis (RIA) serves to evaluate whether regulatory actions fulfill the desired goals. Although there are different frameworks for conducting RIA, they are only applicable to regulations whose impact can be measured with structured data. Yet, a significant and increasing number of regulations require firms to comply by communicating textual data to consumers and supervisors. Therefore, we develop a methodological framework for RIA in case of unstructured data based on textual analysis and apply it to a recent financial market regulation: MiFID II.
We study the introduction of single-market liquidity provider incentives in fragmented securities markets. Specifically, we investigate whether fee rebates for liquidity providers enhance liquidity on the introducing market and thereby increase its competitiveness and market share. Further, we analyze whether single-market liquidity provider incentives increase overall market liquidity available for market participants. Therefore, we measure the specific liquidity contribution of individual markets to the aggregate liquidity in the fragmented market environment. While liquidity and market share of the venue introducing incentives increase, we find no significant effect for turnover and liquidity of the whole market.
AGAINST THE BACKGROUND OF FRAGMENTED EUROPEAN EQUITIES TRADING, MARKET OPERATORS HAVE EMPLOYED DIFFERENT STRATEGIES TO INCREASE LIQUIDITY ON THEIR MARKET RELATIVE TO OTHER TRADING VENUES. ONE OF THESE STRATEGIES IS TO INCENTIVIZE LIQUIDITY PROVIDERS VIA FEE REBATES. THIS ARTICLE PRESENTS AN EMPIRICAL INVESTIGATION OF THE INTRODUCTION OF THE XETRA LIQUIDITY PROVIDER PROGRAM AT DEUTSCHE BÖRSE AND ITS IMPACT ON LIQUIDITY AND TRADING VOLUME ON THE INTRODUCING MARKET ITSELF AND ON THE CONSOLIDATED EUROPEAN MARKET.
THE SPEED OF TRADING, AND IN PARTICULAR HIGH-FREQUENCY TRADING, IS ONE OF THE MOSTLY DEBATED ISSUES AMONG REGULATORS AND MARKET PARTICIPANTS. NEVERTHELESS, SEVERAL ACADEMIC STUDIES HAVE SHOWN THAT HIGH-FREQUENCY TRADERS USING LOW-LATENCY INFRASTRUCTURE PROVIDE ADDITIONAL LIQUIDITY THEREBY REDUCING TRANSACTION COSTS IN ORDINARY TIMES OF TRADING. WE STUDY WHETHER HIGH-FREQUENCY TRADERS ALSO CONTRIBUTE TO THE RECONSTRUCTION OF THE ORDER BOOK AFTER LIQUIDITY SHOCKS CAUSED BY LARGE ORDERS.
ALGORITHMIC DECISION MAKING PLAYS AN IMPORTANT ROLE IN FINANCIAL MARKETS. ONE SOURCE OF INFORMATION FOR SUCH ALGORITHMS IS THE SENTIMENT OF SOCIAL MEDIA MESSAGES AND NEWS ARTICLES CONCERNING A LISTED COMPANY. YET, CURRENT TOOLS DO NOT DISTINGUISH BETWEEN POPULAR AND LESS POPULAR NEWS AND IT IS UNCLEAR WHETHER METHODOLOGIES BASED ON DATA ANALYTICS CAN BE APPLIED ON SMALL DATASETS OF LESS POPULAR COMPANIES. THEREFORE, WE ANALYZE WHETHER THE IMPACT OF MEDIA SENTIMENT ON FINANCIAL MARKETS IS INFLUENCED BY TWO LEVELS OF INVESTOR ATTENTION AND WHETHER THIS IMPACTS ALGORITHMIC DECISION MAKING.
ORGANIZATIONAL MINDFULNESS (OM) SUPPORTS THE MANAGEMENT AND EMPLOYEES WORKING IN THE INCREASINGLY DYNAMIC WORK ENVIRONMENTS DRIVEN BY CLOUD COMPUTING OR MOBILE DEVICES. SPECIFICALLY, IN MINDFUL ORGANIZATIONS, SUCH AS FINANCIAL INSTITUTIONS, RELIABLE OUTCOMES ARISE FROM OM IN THE FACE OF COMPLEX INFORMATION SYSTEMS. HOWEVER, EXTANT IS RESEARCH HAS DISREGARDED THE MULTILEVEL STRUCTURE OF MINDFULNESS, ESPECIALLY THEIMPORTANCE OF MINDFUL ORGANIZING (MO) ON LOWER HIERARCHICAL LEVELS. BASED ON DATA FROM 256 USERS OF AN ORGANIZATION WIDE CLOUD-BASED DESKTOP-AS-A-SERVICE SYSTEM, WE FOUND A SIGNIFICANTLY POSITIVE INFLUENCE OF THE COMBINATION OF OM AND MO AS WELL AS DIFFERENTIAL EFFECTS FOR BOTH ON JOB PERFORMANCE.
Yes, they are. The securities services industry is at a tipping point of its digital transformation and will now see industry solutions to scale. We identify three fundamental drivers being adopted more broadly: cloud migration, data, and digitization. This triage also drives the scaling of Clearstream’s digital infrastructure D7, one of the leading digital infrastructures globally.
A RECENT SURVEY SHOWS THE IMPORTANCE OF DEDICATED GOVERNANCE STRATEGIES FOR MANAGING SERVICE-ORIENTED ARCHITECTURES IN BANKS. IN ORDER TO IMPLEMENT NOVEL GOVERNANCE STRATEGIES, THE EXISTING IT ORGANIZATION HAS TO BE ADAPTED ACCORDINGLY. THIS REPORT PRESENTS ENHANCEMENTS OF CLASSICAL IT ORGANIZATIONS.
CURRENTLY THE REALIZATION OF SERVICE-ORIENTED ARCHITECTURE (SOA) IMPLEMENTATION IN THE GERMAN BANKING INDUSTRY VARIES, WHEREAS SOME ARE IN THE ADOPTION PHASE AND SOME ARE ALREADY IN THE SOA OPERATION PHASE. THIS ARTICLE FOCUSES ON SPECIFIC IMPLICATIONS CONCERNING THE SOA READINESS AND THE SOA MATURITY OF GERMAN BANKS AS WELL AS THE ROLE OF SOA IN THE CONTEXT OF M&A SCENARIOS.
Attraction and commercial success of web sites depend heavily on the additional values visitors may find. Here, individual, automatically obtained and maintained user profiles are the key for user satisfaction. This contribution shows for the example of a cooking information site how user profiles might be obtained using category information provided by cooking recipes. It is shown that metrical distance functions and standard clustering procedures lead to erroneous results. Instead, we propose a new mutual information based clustering approach and outline its implications for the example of user profiling.
Order channel management
(2007)
INSTITUTIONAL INVESTORS, I.E. HEDGE FUNDS OR TRADITIONAL FUNDS, FACE ON THE ONE HAND NEW TECHNOLOGY-ENABLED TRADING CHOICES AND ON THE OTHER HAND INCREASED PERFORMANCE PRESSURE FROM THEIR CUSTOMERS. TO BALANCE THESE OPPORTUNITIES AND CHALLENGES, NEW APPROACHES TO MANAGE THEIR TRADING DESKS AND ORDER DECISIONS ARE REQUIRED.
INDIVIDUAL INVESTORS ARE REPEATEDLY FOUND TO UNDERPERFORM RELATIVE TO A MARKET INDEX. BESIDES EXCESSIVE TRADING, LITTLE IS KNOWN WHEN RETAIL INVESTORS COLLECTIVELY LOSE. THIS ARTICLE SHOWS THAT TRADING IN SHORT-SELLING CONSTRAINED, VOLATILE STOCKS AROUND EARNINGS ANNOUNCEMENTS IS COSTLY TO INDIVIDUAL INVESTORS. THE EFFECT IS PARTICULARLY PRONOUNCED FOR LESS SOPHISTICATED INVESTORS.
Customer equity reporting
(2014)
WHARTON SCHOOL OF BUSINESS AT UNIVERSITY OF PHILADELPHIA HAS JUSTLAUNCHED AN 8-WEEK ONLINE PROGRAM “STRATEGIC VALUE OF CUSTOMER RELATIONSHIPS – ONLINE” TAUGHT BY MARKETING PROFESSOR AND AUTHOR PETER FADER. HE INVITED PROFESSOR SKIERA, DIRECTOR OF THE E-FINANCE LAB, TO PHILADELPHIA TO LEARN ABOUT HIS THOUGHTS ON “CUSTOMER EQUITY REPORTING”. THIS ARTICLE SUMMARIZES SOME OF PROFESSOR FADER’S QUESTIONS AND PROFESSOR SKIERA’S REPLIES.
Interview mit Dr. Stefan Fenner, Managing Director CAPVERIANT GmbH
TRADITIONALLY, THE COST OF DEBT IS SOLELY SEEN DEPENDENT ON FIRM OR DEBT CHARACTERISTICS. HOWEVER, INCREASED PRICE TRANSPARENCY AS CAN BE FOUND IN THE U.S. CORPORATE BOND MARKET HAS REDUCED CORPORATE BOND YIELDS. THE OBJECTIVE OF THIS WORK IS TO MEASURE THE SPILL-OVER EFFECT OF INCREASED PRICE TRANSPARENCY IN CORPORATE BONDS ON THE COST OF CORPORATE BORROWING OF SYNDICATED LOANS BY MAKING USE OF A NATURAL EXPERIMENT, I.E., THE INTRODUCTION OF THE TRACE SYSTEM FOR BONDS.
ON THE INTERNET, SEARCH ENGINES INFLUENCE THE BEHAVIOR OF AN INCREASING PART OF CUSTOMERS. BANKS MAKE USE OF SEARCH ENGINES TO PROMOTE PRODUCTS BY USING KEYWORD AUCTIONS TO PURCHASE A PLACE OF THEIR ADVERTISEMENTS IN THE SPONSORED SEARCH LISTINGS. WE DESCRIBE HOW TO BID IN KEYWORD AUCTIONS AND HOW TO MEASURE THE SUCCESS OF SEARCHENGINE MARKETING.
PRO-CYCLICALITY OF COLLATERAL HAIRCUTS AND MARGINS HAS BECOME A WIDELY PROCLAIMED BEHAVIOUR BUT EMPIRICAL EVIDENCE ON THIS TOPIC IS QUITE SPARSE AND THE DISCUSSIONS ARE PRIMARILY DRIVEN BY INSIGHTS DERIVED FROM THEORETICAL MODELS. BASED ON A UNIQUE DATA SET, WE CONSTRUCT A MEASURE OF SYSTEMIC ILLIQUIDITY OF BOND COLLATERALS AND APPLY BUBBLE DETECTION TECHNIQUES TO IDENTIFY IRRATIONAL BEHAVIOUR AND PRO-CYCLICAL TENDENCIES. FINALLY, WE PROPOSE A QUANTITATIVE TRIGGER AND DESIGN FOR MACROPRUDENTIAL HAIRCUT ADD-ONS.
DIGITAL CURRENCIES ARE A GLOBALLY SPREADING PHENOMENON THAT IS FREQUENTLY AND PROMINENTLY ADDRESSED BY MEDIA, POLITICS AND ACADEMIA. WE AIM AT GIVING EMPIRICAL INSIGHTS ON WHETHER USERS’ INTEREST REGARDING DIGITAL CURRENCIES IS DRIVEN BY ITS APPEAL AS AN ASSET OR ITS UTILITY AS A CURRENCY. BASED ON OUR EVALUATION, WE FIND STRONG INDICATIONS THAT ESPECIALLY UNINFORMED USERS APPROACHING BITCOIN ARE NOT PRIMARILY INTERESTED IN AN ALTERNATIVE TRANSACTION SYSTEM, BUT SEEK TO PARTICIPATE IN AN ALTERNATIVE INVESTMENT VEHICLE.
THE FINANCIAL INDUSTRY HAS EXPERIENCED A CONTINUOUS EVOLUTION IN SERVICE DELIVERY DUE TO DIGITALIZATION. THIS CHANGE MANIFESTS ITSELF IN EXPANDED CONNECTIVITY, ENHANCED SPEED OF INFORMATION PROCESSING, A MULTITUDE OF NEW FINANCIAL PRODUCTS, AND NOVEL FORMS OF CUSTOMER INTERACTION. AGAINST THIS BACKDROP, ACADEMIC RESEARCH HAS ANALYZED THE IMPACT OF DIGITALPROGRESS IN THE FINANCIAL SECTOR. IN ORDER TO PROVIDE AN OVERVIEW ON THIS RESEARCH AND TO IDENTIFY POSSIBLE GAPS, WE HAVE REVIEWED THE RELEVANT LITERATURE IN THIS FIELD APPLYING A SYSTEMATIC AND COMPREHENSIVE SEARCH.
Kaum eine andere Industrie wurde in den vergangenen beiden Jahrzehnten so massiv durch den Einzug der Informationstechnologie geprägt wie der Wertpapierhandel. Traditionelle Geschäftsmodelle haben sich grundlegend verändert. Das klassische Börsenparkett ist nahezu vollständig elektronischen Handelsplattformen gewichen.
EMITTERS OF MUTUAL FUNDS AND OTHER FINANCIAL PRODUCTS LACK INFORMATION ABOUT THEIR CUSTOMERS. THEY MOSTLY OPERATE WITH A PRODUCT-CENTRIC MARKE TING CONCEPT. WITH INFORMATION ABOUT CUSTOMERS, THEY COULD SHIFT TOWARDS A MORE CUSTOMER-CENTRIC STRATEGY. HOWEVER, SUCH A STRATEGY DEMANDS INFOR MATION THAT IS HARDLY AVAILABLE. VIRTUAL PORTFOLIOS CAN BRIDGE THIS GAP AND PROVIDE EMITTERS OF FINANCIAL PRODUCTS WITH KNOWLEDGE ABOUT THEIR CUSTOMERS AND THEIR COMPETITORS. THIS ARTICLE ILLUSTRATES THE INSIGHTS THAT VIRTUAL PORTFOLIOS CAN PROVIDE TO EMITTERS OF A MUTUAL FUND.
TO DERIVE OPTIMAL ORDER EXECUTION STRATEGIES THAT STRIVE TO MINIMIZE TRANSACTION COSTS, INVESTORS AS WELL AS AUTOMATED TRADING ENGINES MUST BE ABLE TO ANTICIPATE CHANGES IN THE AVAILABLE MARKET LIQUIDITY. BASED ON AN EVENT STUDY ON THE LIQUIDITY IMPACT OF AD-HOC DISCLOSURES, WE PROPOSE A NOVEL IT ARTIFACT THAT ALLOWS AUTOMATED TRADING ENGINES TO APPROPRIATELY REACT TO NEWS-RELATED LIQUIDITY SHOCKS. FURTHERMORE, WE PROVIDE A SIMULATIONBASED EVALUATION THAT SHOWS ITS ECONOMIC RELEVANCE.
Interview with Markus Habbel, Principal McKinsey & Company. IN THE ACTUAL CRISIS, ENTERPRISES FACE DWINDLING FINANCIAL RESOURCES AND
THE BOTTOM FALLS OUT OF A LOT OF BUSINESS. CHIEF FINANCIAL OFFICERS (CFOs) ARE IN THE EYE OF THE STORM. HOW DOES THEIR ROLE CHANGE?
WE STUDY WHETHER PRIVATE EQUITY (PE) FIRMS HAVE A POSITIVE IMPACT ON THE FINANCIAL PERFORMANCE OF THEIR GERMAN PORTFOLIO COMPANIES BEFORE AND AFTER THE IPO. OUR EMPIRICAL ANALYSIS IS BASED ON A UNIQUE AND LARGE DATASET OF ALL IPOS IN GERMANY BETWEEN 2000 AND 2007. WE FIND THAT PE FIRMS SELECT COMPANIES WITH BELOW AVERAGE PERFORMANCE AND THEN IMPROVE PERFORMANCE SUBSTANTIALLY UNTIL THE IPO DATE AND IN MANY CASES ALSO THEREAFTER. THIS IMPLIES THAT PE FIRMS FILL A VOID ALSO IN GERMAN FINANCIAL MARKETS AND THAT THEY WILL ALSO PLAY A FUTURE ROLE IN FINANCING GERMAN ENTERPRISES.
ROBO-ADVICE HAS THE POTENTIAL TO DISRUPT THE MARKET FOR FINANCIAL ADVICE. ALGORITHMS ALREADY DELIVER LOW-COST, AUTOMATIC, AND STANDARDIZED INVESTMENT GUIDANCE TO CLIENTS FROM ALL WEALTH LEVELS AND ESPECIALLY TO THOSE PREVIOUSLY EXCLUDED FROM PERSONAL FACE-TO-FACE ADVICE. TODAY’S OFFERINGS CONCENTRATE ON CONVENIENCE AND COMPLEXITY REDUCTION, COUPLED WITH PASSIVE INVESTMENTS. THE NEXT STEP WILL ADVANCE ALGORITHMS TO DELIVER TAILOR-MADE DECISION SUPPORT FOR THE GROWING NUMBER OF SELF-DIRECTED INVESTORS. THIS ARTICLE PRESENTS REAL-LIFE EMPIRICAL RESULTS ON THE INTRODUCTION OF A PORTFOLIO OPTIMIZATION TOOL THAT GUIDES BROKERAGE CLIENTS TOWARDS INDIVIDUAL OPTIMAL PORTFOLIOS.
What does your personality reveal about your financial behavior? Evidence from a FinTech experiment
(2022)
We co-operate with a German financial account aggregator (FAA) and conduct a personality survey with 1,700 app users. We combine the survey results with their anonymized transaction data and investigate links between personality traits and spending behavior. Observing many lottery windfalls in our dataset and treating these incidents as real-life experiments, we ask: what do individuals do with unexpected income changes? Our findings suggest that highly extraverted individuals tend to overspend in response to lottery windfalls.
THE FINANCIAL TRANSACTION TAX (FTT) IMPLEMENTATION IN FRANCE IN MID 2012 IS CONSIDERED A LANDMARK DEVELOPMENT WITHIN SECURITIES MARKETS REGULATION. HOWEVER, UNTIL TODAY, THE CONTROVERSY ABOUT POSSIBLE DRAWBACKS AND PRACTICAL APPLICABILITY HAS NOT REACHED A CONCLUSION AND CONSEQUENCES FOR MARKET QUALITY ARE YET TO BE THOROUGHLY ASSESSED. IN THIS LIGHT, A RIGOROUS EVALUATION OF THE FTT’S EFFECT ON MARKET QUALITY IS HIGHLY DESIRABLE.
Bridging markets
(2016)
MANY PEOPLE CLAIM THAT FIRMS NEED TO EMBRACE DIGITAL TECHNOLOGIES. YET, WE KNOW LITTLE ABOUT DIGITAL EMBRACEMENT, ITS ANTECEDENTS, AND ECONOMIC CONSEQUENCES. THIS ARTICLE PROPOSES A TEXTUAL APPROACH TO MEASURE DIGITAL EMBRACEMENT AND APPLIES IT IN AN EMPIRICAL STUDY COVERING 2,278 PUBLICLY LISTED U.S. FIRMS OVER 17 YEARS. THE RESULTS OUTLINE A VAST HETEROGENEITY IN FIRMS’ DIGITAL EMBRACEMENT IN AND ACROSS INDUSTRIES. REMARKABLY, A HIGHER DIGITAL EMBRACEMENT PREDICTS HIGHER FINANCIAL PERFORMANCE.