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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.
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.
WE DECOMPOSE INDIVIDUAL INVESTORS’ PORTFOLIO RETURNS INTO PASSIVE BENCHMARK RETURNS, ACTIVE SECURITY SELECTION RETURNS, AND ACTIVE MARKET TIMING RETURNS. FOR THE AVERAGE INVESTOR IN OUR SAMPLE, PASSIVE BENCHMARK RETURNS EXPLAIN SOME 40% OF VARIATION IN LONGITUDINAL PORTFOLIO RETURNS, SECURITY SELECTION EXPLAINS AN ADDITIONAL 50%, AND MARKET TIMING PLAYS ONLY A MINOR ROLE. THIS STANDS IN STARK CONTRAST TO EARLIER RESULTS ON INSTITUTIONAL INVESTORS WHERE PASSIVE BENCHMARK RETURNS (REFLECTING DIFFERENT ASSET ALLOCATION STRATEGIES) EXPLAIN OVER 90%. THE PREDOMINANCE OF SECURITY SELECTION COMES AT A COST FOR INDIVIDUAL INVESTORS: INVESTORS FROM THE HIGHEST QUINTILE IN TERMS OF SECURITY SELECTION ACTIVITY UNDERPERFORM THEIR PEERS FROM THE LOWEST QUINTILE BY MORE THAN 10 PERCENTAGE POINTS PER YEAR. TRANSACTION COSTS EXPLAIN ONLY PART OF THIS UNDERPERFORMANCE. THE LESS INVESTORS DIVERSIFY, THE WORSE THEY DO.
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.
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.
THE FINANCIAL SERVICES INDUSTRY IS OPERATING IN HIGHLY VOLATILE MARKETS.
TO CONSIDER THE IMPACT OF UNCERTAIN MARKET ENVIRONMENTS ON INAND OUTSOURCING DECISIONS, WE INTRODUCE A REAL OPTIONS BASED DECISION SUPPORT MODEL. WE APPLY THE MODEL TO AN IT INFRASTRUCTURE OUTSOURCING DECISION AND DETERMINE - BASED ON COST SAVINGS RESULTING FROM OUTSOURCING AND OPTION VALUES ACCOUNTING FOR UNCERTAINTY - DIFFERENT “TRIGGER” OUTPUT VOLUMES WHICH INDICATE IF IN- OR OUTSOURCING IS PREFERABLE. FINALLY WE SHOW THAT THE MODEL CAN ALSO BE TRANSFERRED TO SOURCING DECISIONS OF TRANSACTION BASED BUSINESS PROCESSES LIKE CLEARING AND SETTLEMENT OF SECURITIES.
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.
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.
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.
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 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.
NOWADAYS, ORGANIZATIONS ARE INCREASINGLY RELYING ON THIRD PARTIES TO SUPPLY VITAL IT SERVICES, WITH THE COMMUNICATION BEING PREDOMINATELY CONDUCTED VIA THE INTERNET. THIS, HOWEVER, POTENTIALLY EXHIBITS SENSITIVE BUSINESS INFORMATION TO OUTSIDERS. IN THIS ARTICLE, WE SHOW WHICH UNDESIRED SIDE EFFECTS STATE-OFTHE ART COUNTER MEASURES MAY HAVE.
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.
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.
WHILE CLOUD MARKETS PROMISE UNLIMITED RESOURCE SUPPLIES, INDIVIDUAL PROVIDERS MIGHT BE UNABLE TO OFFER SUFFICIENT PHYSICAL CAPACITY TO SERVE LARGE CUSTOMERS. A SOLUTION IS TO FORM CLOUD COLLABORATIONS, IN WHICH MULTIPLE CLOUD PROVIDERS UNITE FORCES IN ORDER TO CONJOINTLY OFFER CAPACITIES WITHIN CLOUD MARKETS. QUALITY OF SERVICE (QOS) AND SECURITY ASPECTS ARE THE PRIMARY CONSIDERATIONS IN BUILDING SUCH COLLABORATIONS. THIS RESEARCH REPORT PRESENTS A CORRESPONDING OPTIMIZATION APPROACH FOR THE SELECTION OF COLLABORATIVE CLOUD PROVIDERS UNDER CONSIDERATION OF FULFILLMENT OF CLOUD USERS’ QOS AND SECURITY REQUIREMENTS.
OVER THE LAST DECADE, IT PROVISIONING VIA CLOUDS HAS BECOME A COMMON PRACTICE. MEANWHILE, COMPLEX SOFTWARE SERVICES WITH STRINGENT QUALITY OF SERVICE (QOS) REQUIREMENTS ARE DELIVERED BY CLOUD PROVIDERS OVER THE INTERNET. TO ACHIEVE A COST-EFFICIENT AND QOS-AWARE SERVICE PROVISIONING, THE SELECTION OF APPROPRIATE CLOUD RESOURCES IS A HIGHLY IMPORTANT TASK. IN THIS REPORT, WE OFFER CONCEPTS AND TOOLS TO SERVICE PROVIDERS FOR AN ACCELERATED RESOURCE SELECTION IN LARGE ENVIRONMENTS.
IN COMPARISON TO TRADITIONAL IT PARADIGMS, CLOUD COMPUTING ENABLES TO OBTAIN DESIRED COMPUTING RESOURCES ON-DEMAND WITHOUT REQUIRING LARGE, UPFRONT INVESTMENTS AND TO DYNAMICALLY ADAPT AND SCALE THESE RESOURCES TO VARYING BUSINESS REQUIREMENTS. HOWEVER, CLOUD COMPUTING IS NOT A PANACEA. THIS DRIVES THE NEED TO EXAMINE THE SPECIFIC REASONS AND REQUIREMENTS FOR CLOUD ADOPTION IN PRACTICE. HERE, WE FOLLOW AN ANALYTICAL APPROACH TO EXAMINE CLOUD ADOPTION BY CONDUCTING A LITERATURE SURVEY AND AN EMPIRICAL STUDY.
CLOUDS ARE INCREASINGLY BEING USED FOR THE DELIVERY OF COMPLEX SOFTWARE SERVICES WITH STRINGENT QUALITY OF SERVICE (QOS) DEMANDS. IN ORDER TO ACHIEVE COST-EFFICIENT PROVISION THROUGH THE UNDERLYING INFRASTRUCTURE, A SUITABLE SELECTION OF CLOUD DATA CENTERS IS REQUIRED. THIS REPORT PRESENTS A CORRESPONDING OPTIMIZATION APPROACH, WHICH IS SUITABLE FOR BOTH PRIVATE AND PUBLIC CLOUD SETTINGS.
TODAY’S CLOUD CONSUMERS HAVE VERY LIMITED MEANS FOR VERIFYING THE COMPLIANCE TO PRIOR NEGOTIATED SLAS INDEPENDENTLY FROM A CLOUD PROVIDER. IN ORDER TO OBTAIN RELIABLE MEANS FOR SERVICE MONITORING, WE PROPOSE AN INTERMEDIARY-BASED SOLUTION IN CONJUNCTION WITH DIFFERENT STRATEGIES FOR ROBUST CLOUD MONITOR PLACEMENT.
THE RECENT EVOLUTION OF SMART CONTRACTS AND THEIR FAST ADOPTION ALLOW TO RETHINK PROCESSES AND TO CHALLENGE TRADITIONAL STRUCTURES. THEREFORE, WE INTRODUCE THE UNDERLYING TECHNOLOGY AND RECENT IMPROVEMENTS. FURTHER, WE PROVIDE AN OVERVIEW OF HOW THE INSURANCE SECTOR MAY BE AFFECTED BY BLOCKCHAIN TECHNOLOGY AND SMART CONTRACTS. WE SHOW AN EXEMPLARY USE CASE AND EMPHASIZE CURRENT CHALLENGES AND LIMITATIONS IN THIS AREA.
IN A CASE STUDY IN THE GERMAN RETAIL BANKING BUSINESS IT IS SHOWN THAT ALIGNMENT BETWEEN IT AND BUSINESS UNIT IS CRUCIAL FOR THE ACTUAL USAGE OF IT SYSTEMS WHICH IN TURN IS A KEY DRIVER FOR BUSINESS PROCESS QUALITY. BANKS SHOULD THEREFORE FOSTER INTERRELATIONSHIPS BETWEEN IT AND BUSINESS AS WELL AS CROSS FUNCTIONAL WORK BIOGRAPHIES OF TEAM LEADERS
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.
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.
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.
THIS EXPLORATORY STUDY INVESTIGATES DRIVERS OF THE CRYPTOCURRENCY EX CHANGE COMPETITION. WE EXAMINE THE IMPACT OF MARKET-RELATED AND COMMUNITY-RELATED ASPECTS OF CRYPTOCURRENCY EXCHANGES ON TWO DISTINCT TYPES OF COMPETITION. OUR EMPIRICAL ANALYSIS OF THREE DATASETS INDICATES THAT THE COMPETITION FOR TRADING FREQUENCY IS DRIVEN BY BOTH THE MARKET AS WELL AS THE COMMUNITY WHEREAS THE COMPETITION FOR TRADING QUANTITY IS DRIVEN SOLELY BY THE MARKET.
TO MAKE PROFITABLE INVESTMENT DECISIONS, INVESTORS NEED TO ASSESS THE FINANCIAL FUTURE OF FIRMS. DUE TO INVESTORS’ LACK OF INTERNAL INFORMATION ABOUT THE FIRMS’ FUTURE PROSPECTS, THEY OFTEN HAVE TO RELY ON MANAGERS’ VERBAL STATEMENTS FOR THIS TASK. HOWEVER, AS MANAGERS MIGHT HAVE AN INCENTIVE TO PRESENT POSITIVELY BIASED INFORMATION, THE VALUE OF THEIR STATEMENTS FOR INVESTORS IS NOT CLEAR.
IN THIS REPORT, WE SHOW HOW TEXTUAL ANALYSIS TOOLS CAN BE USED TO ASSESS THE VALUE OF MANAGERS’ VERBAL STATEMENTS DURING EARNINGS CONFERENCE CALLS FOR INVESTORS. WE FIND THAT IN PARTICULAR MANAGERS’ NEGATIVE STATEMENTS SIGNI FICANTLY PREDICT LOWER FUTURE EARNINGS.
ICOs and improvement potentials for a global digital market infrastructure : Martin Steinbach
(2018)
DIGITIZATION CHALLENGES COMPANIES TO ACCELERATE THEIR INNOVATION CYCLES TO STAY COMPETITIVE. THIS RESEARCH INVESTIGATES HOW IT KNOWLEDGE ESTABLISHED ON DIFFERENT HIERARCHICAL LEVELS LEADS TO ORGANIZATIONAL INNOVATIVENESS. DIFFERENTIATING BETWEEN STRATEGICALLY MORE AND LESS DIGITIZED ORGANIZATIONS, THE RESULTS REVEAL: ORGANIZATIONAL INNOVATIVENESS IS SIGNIFICANTLY HIGHER INFLUENCED BY THE IT KNOWLEDGE OF BUSINESS EMPLOYEES IN ORGANIZATIONS GIVING THE DIGITAL BUSINESS STRATEGY HIGH IMPORTANCE, WHEREAS THE MANAGEMENT’S ROLE DECREASES. WE FURTHER DEDUCE THE CIO’S POSITIVE ROLE FOR IT-ENABLED BUSINESS INNOVATION IN KNOWLEDGE-INTENSIVE INDUSTRIES, SUCH AS THE FINANCIAL SERVICES SECTOR.
THE GROWING DEMAND FOR DIFFERENTIATED QUALITY OF SERVICE REQUIREMENTS OF VARIOUS MOBILE APPLICATIONS ESTABLISHES THE NEED FOR ELASTIC CLOUDLET RE SOURCE ALLOCATIONS. HERE, WE CONSIDER THE DYNAMIC OPTIMIZATION OF RESOURCE ALLOCATIONS IN REMOTE, AS WELL AS EDGE CLOUD INFRASTRUCTURES. WE CONSIDER TIME VARYING APPLICATION DEMANDS AND OPTIMIZE THE CLOUDLET RESOURCE ALLOCATION OVER A FINITE TIME HORIZON SHOWING THAT THE CORRESPONDING COMPUTATIONAL EFFORT IS REDUCED BY THREE ORDERS OF MAGNITUDE.
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.
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.
INDIVIDUALS WITH LOWER SELF-CONTROL OFTEN FAIL IN STICKING TO THEIR PLANS WHEN FACING STRONG TEMPTATIONS. ARE THEY ALSO PRONE TO EXHIBIT INVESTMENT BIASES AND SHOW A MORE IMPULSIVE TRADING BEHAVIOR WHILE FORFEITING POTENTIAL PERFORMANCE IN A FINANCIAL CONTEXT? WE USE CIGARETTE ADDICTION, IDENTIFIED THROUGH CHECKING ACCOUNT TRANSACTIONS, AS A PROXY FOR LOW SELFCONTROL AND COMPARE THE INVESTMENT BEHAVIOR OF SMOKERS TO THAT OF NONSMOKERS TO ADDRESS THIS QUESTION EMPIRICALLY.
DIGITAL TRANSFORMATION COUPLED WITH THE SIMPLIFIED AVAILABILITY OF DATA BRINGS ARTIFICIAL INTELLIGENCE (AI) CLOSER TO COMMERCIAL USE. FOR THE DATADRIVEN FINANCIAL INDUSTRY, AI IS OF INTENSIVE INTEREST WITHIN PILOT PROJECTS. STILL, FEW AI APPLICATIONS HAVE BEEN IMPLEMENTED SO FAR. THIS STUDY ANALYZES DRIVERS AND INHIBITORS OF A SUCCESSFUL AI ADOPTION IN THE FINANCIAL INDUSTRY BASED ON PANEL DATA COMPRISING 22 SEMI-STRUCTURED INTERVIEWS WITH EXPERTS OF AI IN FINANCE, INCLUDING INTERVIEWEES FROM LEADING SOFTWARE PROVIDERS SUCH AS SAP, IBM, SALESFORCE, AND MICROSOFT. FOR APPLYING AI SUCCESSFULLY, THE GUIDELINES REVEAL SEVERAL DATA CONDITIONS, AI-SPECIFIC ROLE MODELS, AND OVERCOMING MORAL CONCERNS AS CRUCIAL BEFORE TRAINED ALGORITHMS WILL HAVE REACHED A QUALITY LEVEL TO OPERATE WITHOUT HUMAN INTERVENTION.
EXTANT STRATEGY CONCEPTS ARE CHALLENGED DUE TO THE ONGOING DIGITIZATION, WHICH FUNDAMENTALLY CHANGES CONDITIONS FOR ALL MARKET PARTICIPANTS. THIS RESEARCH COMPARES THE CONCEPT OF IT ALIGNMENT WITH THE RECENTLY INTRODUCED “DIGITAL BUSINESS STRATEGY” (DBS), WHICH DESCRIBES A CROSS-FUNCTIONAL AND AGILE FUSION OF BUSINESS AND IT STRATEGY. THE RESULTS REVEAL A TOTAL ABSENCE OF A DIRECT INFLUENCE OF IT LEADERS (CIOS) ON DBS, WHEREAS A HIGH IMPACT ON IT ALIGNMENT IS STILL GIVEN. BUSINESS LEADERS IN TURN IMPACT MORE ON DBS.
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.
CROWDFUNDING PLATFORMS HAVE BECOME A VALUABLE ALTERNATIVE TO TRADITIONAL SOURCES OF FINANCING. HOWEVER, SOME PHENOMENA ON CROWDFUN DING PLATFORMS CAUSE UNDESIRABLE EXTERNAL EFFECTS THAT CAN ADVERSELY INFLUENCE THE FUNDING SUCCESS OF PROJECTS. ONE SUCH PHENOMENON IS PROJECT OVERFUNDING. IN ORDER TO INTERNALIZE THE EXTERNALITIES OF OVER FUNDING, WE PROPOSE A FUNDING REDISTRIBUTION APPROACH FOR IMPROVING OVERALL FUNDING RESULTS. TO EVALUATE THIS CONCEPT, WE DEVELOP AND DEPLOY AN AGENT-BASED MODEL.
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.
Chatbots become human(like): the influence of gender on cooperative interactions with chatbots
(2019)
CURRENT TECHNOLOGICAL ADVANCEMENTS OF CONVERSATIONAL AGENTS (CAs) PROMISE NEW POTENTIALS FOR HUMAN-COMPUTER COLLABORATIONS. YET, BOTH PRACTITIONERS AND RESEARCHERS FACE CHALLENGES IN DESIGNING THESE INFORMATION SYSTEMS, SUCH THAT CAs NOT ONLY INCREASE IN INTELLIGENCE BUT ALSO IN EFFECTIVENESS. THROUGH OUR RESEARCH ENDEAVOUR, WE PROVIDE NEW AND COUNTERINTUITIVE INSIGHTS THAT ARE CRUCIAL FOR THE EFFECTIVE DESIGN OF COOPERATIVE CAs.
The regulatory and legal challenges of blockchain technology : interview with Nina-Luisa Siedler
(2019)
THE LARGE FIELD OF PSYCHOLOGICAL AND NEUROSCIENTIFIC LITERATURE SUGGESTS THAT POLITICAL PREFERENCES STEM FROM OUR INDIVIDUAL CHARACTERISTICS AND PERSONAL VALUES AND ARE FORMED MUCH EARLIER THAN THE PERSON IS CONFRONTED WITH ANY KIND OF FINANCIAL DECISION. THIS ARTICLE INVESTIGATES WHETHER POLITICAL PREFERENCES AND POLITICAL CLIMATE CAN HAVE AN IMPACT ON FINANCIAL DECISIONS OF INDIVIDUAL INVESTORS – IN PARTICULAR, PORTFOLIO COMPOSITION AND PREFERENCES FOR NATIONAL SECURITIES.
The customer determines the success or failure of the company : interview with Philipp Schmitt
(2021)
COVID-19 HAS AGAIN TIGHTENED ITS GRIP AROUND THE WORLD AND THE HEALTH SYSTEM. THIS ARTICLE GIVES AN INTRODUCTION TO EXPLAINABLE INTERACTIVE MACHINE LEARNING AND PROVIDES INSIGHTS ON HOW THIS METHOD MAY NOT ONLY HELP IN ENGINEERING MORE POWERFUL AI SYSTEMS, BUT ALSO HOW IT MAY HELP TO EASE THE BURDEN OF VIRAL STRAINS ON THE HEALTHCARE SYSTEM.
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.