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Journal of Applied Management and Investments



ISSN 2225-3467



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 Volume 6 Issue 1 2017                                  Abstracts







   Social Costs and Benefits of Structured Products: How Should the German Regulators React to Transparency, Wealth Appropriation, Pricing and Risk in the Local Structured Products Market?   

T. F. Azarmi         

This paper analyzes the structured products in the German secondary market from a regulatory and social interest point of view. It investigates the wealth appropriation and price transparency problems in this markets over-time and with the technical precision needed for a regulatory analysis. In its empirical part, this paper, in particular, increase the precision of past pioneering studies in this area. It also incorporates an algorithm for calculating the values under the normal distribution with additional precision; improves upon escrowed dividend model; incorporates the dividend-yield estimates published by commercial financial data providers; and uses volatility surfaces, to improve the calculation precision of volatility input into the valuation formula. It shows that after removing the above sources of imprecision, the mispricing hypothesis cannot be rejected. This study also distinguishes between random mispricing and systematic overpricing and shows that there is a shift in the underlying estimation distribution indicating systematic overpricing to the disadvantage of the retail customer. In a final step author derived specific recommendations for German regulatory reaction to transparency and wealth appropriation problems in local structured products markets.

Keywords: structured products, price transparency, mispricing, Germany


 The Relationship Between Work Experience and Employee  Compensation: A Case Study of the Indian IT Industry      

M. Dash, S. Bakshi, A. Chugh

Work experience is one of the important factors affecting employee compensation.  Employers regard experience as an indicator of performance in a similar role or industry. Thus, experience affects the ability of individuals to get a job, affects their starting salary, and plays a role in determining increments and promotions. However, there is mixed evidence in the literature, with some studies finding a significant positive impact, while others have found no significant relationship. The current study examines the relationship between work experience and salary for three groups of employees in the IT sector, representing low, medium, and high levels of experience.

Keywords:  work experience, employee compensation, IT sector 


  Wine Value Chains: Challenges and Prospects  

A. G. Goncharuk

The paper defines the concept of wine value chain (WVC), discloses its features and governance patterns. Author identified the main challenges facing theory and practice of the WVCs, grouping them on global and environmental challenges, methodological challenges, financial challenges, economic and market challenges. All considered challenges reduce competitiveness of the WVC actors and require broad participation and an organized response by entrepreneurs, the academic and research sector and all levels of government. Discussing the opportunities for WVCs, the author found that innovative forms of in-chain collaboration and special tariff for shared R&D services, developing network relationships and governance structures, progressive marketing strategies and internet technologies, wine training and brand development jointly with using the best practices open good prospects for improving and developing the WVCs.

Keywords:  wine value chain, winemaking, governance, challenges, prospects


    A Study on Online Banking System and Protection against Potential Malwares

N. Huq, T. Farin

Online banking systems have provided massive advantages in the recent years. Malwares such as Trojans have helped increase bank frauds by means of ‘phishing’ and in the recent years this is rising at an alarming level, as criminals come out with more sophisticated and dangerous tools to commit e-crime. Banks are continuously updating their services online through implementation of advanced security solutions and tried to keep up with these criminals, however, the fraudsters come up with newer means to break the security systems set up by the banks. The article discusses ways in that businesses as well as customers can avoid or minimise such risks.

Keywords:  Internet, information technology, banks, e-business, on-line banking, phishing


 Attractors of Social Processes as a Planning Tool in Variable Environment        

A.N. Коlоsоv

In terms of increasing variability and uncertainties of the market environment such important function of business management as planning is increasingly losing its ability to define the objectives of enterprises activity. Recent researches in physics, biology, social sphere, and now in economics show that instability of variable environment – namely due to chaotic character of system – tries to change its internal state asymptotically into a new, relatively stable one. Such asymptotically stable stationary states, which any open system seeks, called attractors. The successful application of the attractors as planning tools in today's variable environment is grounded on the example of the activity of trading company operating in the consumer market. The attractor of self-organized process of daily consumption is represented in the form of point mapping, built on the basis of Poincare function. The expansion of the method application requires further research of the reliable indicators of the attractors in the spheres of commodity production and establishment of the norms of their consumption by person.

Keywords:  chaotic process, attractor, self-organization, Poincare maps, planning



 Decisive Economic and Stock Market Indicators on Foreign Institutional Investments: Evidence from India

T. Mohanasundaram, P. Karthikeyan

This study explores the determinants of Foreign Institutional Investors (FIIs) investment in India and further more examines the association between FIIs investment and selective economic and stock market variables in both home (USA and UK) and host (India) countries using quarterly time-series data from January 2002 to December 2014.The Bounds F-test for cointegration indicates there is a long-run cointegration relationship among FII investments and its exogenous variables. The outcome of long-run coefficient estimate shows that exchange rate USD-INR has negative and significant impact on FII investments in India both in long-run and short run. NIFTY returns are having significant positive impact on FII investment flows both in long-run and as well as in short-run. Producer Price Index (PPI) of USA reveals positive relationship with FII investments to India only in long-run. Thus, FII investment in India is primarily decided by USD-INR exchange rate, NIFTY returns and USA’s Producer Price Index. 

Keywords: foreign institutional investments, exchange rate, inflation, NIFTY returns, cointegration, autoregressive distributed lag



 Annual Report Disclosures and Their Extent and Variance in India

N. S. Sahore, A. Verma

Disclosure is an accounting activity which holds great significance in the era of modern economic growth where the availability of capital is the major driving force. The economic information therefore should be available in the most efficient manner to aid well- informed decision making process. Therefore this paper intends to extend various aspects of corporate disclosure practices, mainly voluntary disclosures of selected Indian companies. The study found significant variation in total disclosures year-wise but not industry-wise. Nevertheless, one thing is for sure that though the extent of disclosures has improved and has become consistent post 2013 but the international reports reviewed in this study still expect more to be done.

Keywords: corporate disclosures, annual reports, financial disclosures, non-financial disclosures



 A Study on the Relationship between Customer Satisfaction, Business Ethics and Certain Related Variables

M. M. Sulphey, S. George

Ethics and customer satisfaction are highly researched topics. Substantial literature exists in this area. However, the complex relationship between the variables ethics, value and customer satisfaction, and perceive customer trust and loyalty have not been examined. The study examined the complex relationship between ethics and value with customer satisfaction. The relationship between customer satisfaction and the resultant trust and loyalty is also examined. Significant positive correlation was found between the variables that were examined. A model has also been developed signifying the relationship between the variables. However, the study failed to establish any difference with respect to certain demographic aspects like gender, marital status and occupation with the variables studied. The findings of the study will be a significant contribution to the field of customer satisfaction research.

Keywords: business ethics, customer satisfaction, customer loyalty, trust



 Book Review: International Financial Institutions, Climate Change and the Urgency to Facilitate Clean Energy Investment in Developing and Emerging Market Economies  by Dr. Hilmar Þór Hilmarsson

A. V. Kobylianska






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