EconStor Collection:

Surviving Black Swans II: timing the 2020-2022 roller coaster

Sun, 01 Jan 2023 00:00:00 GMT

Title: Surviving Black Swans II: timing the 2020-2022 roller coaster Authors: Topiwala, Pankaj Abstract: Unbeknownst to the public, most investment funds actually underperform the broader market. Yet, millions of individual investors fare even worse, barely treading water. Algorithmic trading now accounts for over 80% of all trades and is the domain of professionals. Can it also help the small investor? In a previous paper, we laid the foundations of a simple algorithmic market timing approach based on the moving average crossover concept which can indeed both outperform the broader market and reduce drawdowns, in a way that even the retail investor can benefit. In this paper, we extend our work to study the recent volatile time period, 2020-2022, and especially the unexpected market roller coaster of 2022, to see how our ideas hold up. While our methods overall would not have made gains in 2022, they would have suffered lessor drawdowns than the market, and made consistent gains over longer periods, including the volatile 2020-2022 period. In addition, at least one of our algorithms would have made handsome profits even in 2022, and can generally negotiate black swans well.

India's Total Natural Resource Rents (NRR) and GDP: An Augmented Autoregressive Distributed Lag (ARDL) bound test

Sun, 01 Jan 2023 00:00:00 GMT

Title: India's Total Natural Resource Rents (NRR) and GDP: An Augmented Autoregressive Distributed Lag (ARDL) bound test Authors: Taneja, Sanjay; Bhatnagar, Mukul; Kumar, Pawan; Rupeika-Apoga, Ramona Abstract: Utilizing natural resources wisely, reducing pollution, and taking other environmental factors into account are now critical to the prospects for long-term economic growth and, by extension, sustainable development. We investigate the impact of total natural resource rents (NRR) on India's GDP in this study. The data sample consists of NRR and GDP data from the World Bank's official website collected between 1993 and 2020. In the study, the Granger causality test and an augmented autoregressive distributed lag (ARDL) bound test were used. The NNR have a significant impact on India's GDP, according to the results of the ARDL model on the framed time series data set. Furthermore, the ARDL bound test reveals that the NRR have a significant short-term and long-term impact on the GDP of the Indian economy. This research contributes to understanding whether an exclusive policy is required for effective management of the complex interactions between various forces in the economic, political, and social environments. This is significant because there is no standard policy in India to improve the efficiency of utility extraction from natural resources.

Capabilities and reputation risks towards firm performance

Sun, 01 Jan 2023 00:00:00 GMT

Title: Capabilities and reputation risks towards firm performance Authors: Noraznira Abd Razak; Najihah Hanisah Marmaya; Mohd Zailani Othman; Idris Osman; Suhailah Kassim; Fatin Aqilah Maskuri; Nik Kutina Mat Tahir Abstract: The effects of firm-specific resources on firm performance has been a quest of many and widely studied worldwide. In today's business environment, arguments suggesting the relative importance of firm-specific resources in explaining firm performance variation are said to be of the greatest influence on the study of firm behavior. On the other hand, firms with strong, positive reputations can attract and retain crucial talent and often have loyal customers likely to buy a broader range of products and services. It can lead to higher sales generated by satisfied customers and their referrals and can potentially raise capital and share price, and improve the firm performance. An empirical study such as this attempts to investigate the combinations of resources of the firm and focus on reputational risk management concerning firm performance. As such, this study involves variables partially adopted from Donabedian Theory, such as intangible resources, namely capability as an exogenous construct towards endogenous construct and firm performance, as well as proposing a mediation model to analyze the mediated relationship of reputational risk in accelerating the relationship between capabilities and firm performance. This study applies variance-based structural equation modeling via Smart PLS to a sample of 161 listed firms in Malaysia as respondents. A judgment purposive sampling technique has been adopted as the respondents are derived from listed firms under Malaysian Bourse. Overall, the findings of this study reveal how firms may gain competitive advantages in terms of their reputation and eventually be able to sustain their firm's performances by implementing an integrative model of intangible resources such as capabilities and in their routines and processes within the firms.

Understanding employees' energy saving in the workplace: DR and the Philippines' realities

Sun, 01 Jan 2023 00:00:00 GMT

Title: Understanding employees' energy saving in the workplace: DR and the Philippines' realities Authors: Camacho, Luis J.; Pasco, Michael; Banks, Moises; Pasco, Randall; Almanzar, Marisela; Rodriguez, Alvin; Amoo, Akinlawon; Rosima, Nelda Abstract: Understanding how employees act at work to save energy and the meaning for sustainability and environmental protection is essential. This research aimed to analyze the influences of Subjective Norms (SN), Descriptive Norms (DN), and Environmental Knowledge (EK) on employees' intention to save energy (ISE) in the Philippines (PH) and the Dominican Republic (DR). The effects of SN, DN, and EK on ISE were evaluated by comparing two developing countries and the mediation effect of EK on the relationship between DN, SN, and ISE. Confirmatory factor analysis (CFA), followed by structural equation modeling and path analysis based on samples collected from employees from DR (340) and PH (339), was performed. Also, construct convergent and discriminant validity were assessed using composite reliability, maximal reliability, average variance extracted, and maximum shared variance. The findings of this study indicate that SN influences ISE positively among employees in PH (Ø = 0.15, p < 0.05) but not among employees in DR. Descriptive Norms positively influence ISE among employees in PH (Ø = 0.47, p < 0.01) and DR (Ø = 0.27, p < 0.01), while EK has a positive and significant influence on the ISE among employees in PH (Ø = 0.22, p < 0.01) and not in DR. There is a partial mediation effect between SN and EK on ISE when EK is the mediator in PH, and no mediation effects for RD. The intention to save energy is significant in economic terms because reducing energy consumption can help decrease energy costs and improve business profitability and competitiveness; in social terms, it can reduce energy consumption worldwide and improve social health, reducing gas emissions and pollution.