Research

28 pages, 426 KiB

Open AccessArticle

Searching for a New Model of Governance in the High Seas: Game Theory Applied to International Commons Management

by Manuel Pacheco Coelho and José António Filipe

Mathematics 2021, 9(19), 2516; https://doi.org/10.3390/math9192516 - 07 Oct 2021

Viewed by 1479

In the last decade, the United Nations took important steps for the creation of a new instrument for biodiversity protection in areas beyond national jurisdiction. This put under discussion the central issues of international commons management and of the governance model for the [...] Read more.

In the last decade, the United Nations took important steps for the creation of a new instrument for biodiversity protection in areas beyond national jurisdiction. This put under discussion the central issues of international commons management and of the governance model for the High Seas. The aim of this paper is to discuss and evaluate critically the political negotiations already made and yet to come, as well as their rationale. For this purpose, the paper applies game theory to fisheries management to get insights. This research aims to contribute toward more qualified and grounded decisions. The key role of cooperation in the sustainable use of common resources is stressed. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

25 pages, 2865 KiB

Open AccessArticle

Relationships between Copper Futures Markets from the Perspective of Jump Diffusion

by Xue Jin, Shiwei Zhou, Kedong Yin and Mingzhen Li

Mathematics 2021, 9(18), 2268; https://doi.org/10.3390/math9182268 - 15 Sep 2021

Cited by 4 | Viewed by 2337

Abstract

This paper analyzes the price correlation effect between domestic and foreign copper futures contracts. The VAR-BEKK-GARCH (1,1) spillover effect model and the BN-S class non-parametric model based on the jumping perspective are used. The co-integration test shows a long-term equilibrium relationship between the [...] Read more.

This paper analyzes the price correlation effect between domestic and foreign copper futures contracts. The VAR-BEKK-GARCH (1,1) spillover effect model and the BN-S class non-parametric model based on the jumping perspective are used. The co-integration test shows a long-term equilibrium relationship between the three copper futures markets, and the Granger causality test shows that copper futures contracts have significant two-way spillover effects between different periods in Shanghai for New York copper and unidirectional mean spillover effects for London copper. The BEKK model shows significant bidirectional fluctuation spillover effects between the futures contracts of the Shanghai, London, and New York copper markets before the stock market crash. After the crash, Shanghai and New York copper have significant one-way fluctuation spillover effects on London copper futures contracts. There are jumps within a single market, and the number of joint jumps between markets increases with the significance level. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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35 pages, 14796 KiB

Open AccessArticle

A Chaos Analysis of the Dry Bulk Shipping Market

by Lucía Inglada-Pérez and Pablo Coto-Millán

Mathematics 2021, 9(17), 2065; https://doi.org/10.3390/math9172065 - 26 Aug 2021

Cited by 4 | Viewed by 1811

Abstract

Finding low-dimensional chaos is a relevant issue as it could allow short-term reliable forecasting. However, the existence of chaos in shipping freight rates remains an open and outstanding matter as previous research used methodology that can produce misleading results. Using daily data, this [...] Read more.

Finding low-dimensional chaos is a relevant issue as it could allow short-term reliable forecasting. However, the existence of chaos in shipping freight rates remains an open and outstanding matter as previous research used methodology that can produce misleading results. Using daily data, this paper aims to unveil the nonlinear dynamics of the Baltic Dry Index that has been proposed as a measure of the shipping rates for certain raw materials. We tested for the existence of nonlinearity and low-dimensional chaos. We have also examined the chaotic dynamics throughout three sub-sampling periods, which have been determined by the volatility pattern of the series. For this purpose, from a comprehensive view we apply several metric and topological techniques, including the most suitable methods for noisy time series analysis. The proposed methodology considers the characteristics of chaotic time series, such as nonlinearity, determinism, sensitivity to initial conditions, fractal dimension and recurrence. Although there is strong evidence of a nonlinear structure, a chaotic and, therefore, deterministic behavior cannot be assumed during the whole or the three periods considered. Our findings indicate that the generalized autoregressive conditional heteroscedastic (GARCH) model and exponential GARCH (EGARCH) model explain a significant part of the nonlinear structure that is found in the dry bulk shipping freight market. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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20 pages, 1828 KiB

Open AccessArticle

Financial Development, Saving Rates, and International Economic Volatility: A Simple Model

by Hejie Zhang, Huiming Lv and Shenghau Lin

Mathematics 2021, 9(16), 2010; https://doi.org/10.3390/math9162010 - 22 Aug 2021

Cited by 1 | Viewed by 1771

Abstract

This study constructs a dynamic and open economy model to show that low saving rates are the cause of economic volatility in developed countries, whereas inadequate financial development is identified as the reason for economic volatility in emerging countries. With low saving rates [...] Read more.

This study constructs a dynamic and open economy model to show that low saving rates are the cause of economic volatility in developed countries, whereas inadequate financial development is identified as the reason for economic volatility in emerging countries. With low saving rates or inadequate financial development, countries find it difficult to avoid economic volatility, because it is difficult to alleviate the financing constraints of firms and maintain the stability of investment. Under similar conditions, economic volatility is more severe in developed countries and has spillover effects by triggering interest rate fluctuations in the global capital market and intensifying economic volatility in other countries. By contrast, emerging countries or small economies do not have spillover effects. To avoid dramatic international economic volatility, emerging countries should prompt financial development, and developed countries should increase their saving rates. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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23 pages, 1015 KiB

Open AccessArticle

Exploring Personal and Contextual Variables of the Global Entrepreneurship Monitor through the Rasch Mathematical Model

by José Alberto Martínez-González, Urszula Kobylinska and Desiderio Gutiérrez-Taño

Mathematics 2021, 9(16), 1838; https://doi.org/10.3390/math9161838 - 04 Aug 2021

Cited by 3 | Viewed by 2419

Abstract

This article studies the variables of entrepreneurship at the regional (countries) level proposed by the Global Entrepreneurship Monitor (GEM) in its periodic global reports. This response to the suggestions and concerns of various authors is related to the need to analyze the theoretical [...] Read more.

This article studies the variables of entrepreneurship at the regional (countries) level proposed by the Global Entrepreneurship Monitor (GEM) in its periodic global reports. This response to the suggestions and concerns of various authors is related to the need to analyze the theoretical foundation of the variables used by GEM. The validity and reliability of GEM data for the scientific study of entrepreneurship are also analyzed. Finally, the potential of GEM data to manage entrepreneurship variables at the country level is studied. Data from the GEM global report and the fifty countries for which data are available on all variables are used in the study. The methodology used is the Rasch mathematical model, a valuable alternative to the Classical Theory of the Test. The results confirm the theoretical validity of GEM data, its validity and reliability for the development of scientific studies, and its potential for managing entrepreneurship variables at the country level. Both the methodology used and the conclusions obtained constitute novel contributions to this field. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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28 pages, 18161 KiB

Open AccessArticle

Methodology and Models for Individuals’ Creditworthiness Management Using Digital Footprint Data and Machine Learning Methods

by Ekaterina V. Orlova

Mathematics 2021, 9(15), 1820; https://doi.org/10.3390/math9151820 - 01 Aug 2021

Cited by 17 | Viewed by 5378

Abstract

This research deals with the challenge of reducing banks’ credit risks associated with the insolvency of borrowing individuals. To solve this challenge, we propose a new approach, methodology and models for assessing individual creditworthiness, with additional data about borrowers’ digital footprints to implement [...] Read more.

This research deals with the challenge of reducing banks’ credit risks associated with the insolvency of borrowing individuals. To solve this challenge, we propose a new approach, methodology and models for assessing individual creditworthiness, with additional data about borrowers’ digital footprints to implement comprehensive analysis and prediction of a borrower’s credit profile. We suggest a model for borrowers’ clustering based on the method of hierarchical clustering and the k-means method, which groups actual borrowers having similar creditworthiness and similar credit risks into homogeneous clusters. We also design the model for borrowers’ classification based on the stochastic gradient boosting (SGB) method, which reliably determines the cluster number and therefore the risk level for a new borrower. The developed models are the basis for decision making regarding the decision about lending value, interest rates and lending terms for each risk-homogeneous borrower’s group. The modified version of the methodology for assessing individual creditworthiness is presented, which is to reduce the credit risks and to increase the stability and profitability of financial organizations. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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16 pages, 555 KiB

Open AccessArticle

The Machine-Part Cell Formation Problem with Non-Binary Values: A MILP Model and a Case of Study in the Accounting Profession

by Jose Joaquin del Pozo-Antúnez, Francisco Fernández-Navarro, Horacio Molina-Sánchez, Antonio Ariza-Montes and Mariano Carbonero-Ruz

Mathematics 2021, 9(15), 1768; https://doi.org/10.3390/math9151768 - 27 Jul 2021

Cited by 3 | Viewed by 1954

Abstract

The traditional machine-part cell formation problem simultaneously clusters machines and parts in different production cells from a zero–one incidence matrix that describes the existing interactions between the elements. This manuscript explores a novel alternative for the well-known machine-part cell formation problem in which [...] Read more.

The traditional machine-part cell formation problem simultaneously clusters machines and parts in different production cells from a zero–one incidence matrix that describes the existing interactions between the elements. This manuscript explores a novel alternative for the well-known machine-part cell formation problem in which the incidence matrix is composed of non-binary values. The model is presented as multiple-ratio fractional programming with binary variables in quadratic terms. A simple reformulation is also implemented in the manuscript to express the model as a mixed-integer linear programming optimization problem. The performance of the proposed model is shown through two types of empirical experiments. In the first group of experiments, the model is tested with a set of randomized matrices, and its performance is compared to the one obtained with a standard greedy algorithm. These experiments showed that the proposed model achieves higher fitness values in all matrices considered than the greedy algorithm. In the second type of experiment, the optimization model is evaluated with a real-world problem belonging to Human Resource Management. The results obtained were in line with previous findings described in the literature about the case study. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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20 pages, 340 KiB

Open AccessArticle

Volatility Spillover Effect of Pan-Asia’s Property Portfolio Markets

by Mário Nuno Mata, Muhammad Najib Razali, Sónia R. Bentes and Isabel Vieira

Mathematics 2021, 9(12), 1418; https://doi.org/10.3390/math9121418 - 18 Jun 2021

Cited by 5 | Viewed by 2167

Abstract

This study assesses the spillover effect of the listed property companies that cover pan-Asian countries, namely Malaysia, Thailand, Indonesia, Singapore, Vietnam, South Korea, Japan, China, the Philippines, and Hong Kong. The impact of market integration will create a spillover effect to the countries’ [...] Read more.

This study assesses the spillover effect of the listed property companies that cover pan-Asian countries, namely Malaysia, Thailand, Indonesia, Singapore, Vietnam, South Korea, Japan, China, the Philippines, and Hong Kong. The impact of market integration will create a spillover effect to the countries’ economic performances, in particular the property market. As macroeconomic factors have high correlation with the performance of property security markets, it is therefore important to study the spillover effect by integrating the macroeconomic factors. This study has employed the exponential generalised autoregressive conditional heteroscedasticity (EGARCH) technique to develop the volatility spillover effect among pan-Asian countries. The results reveal high volatility of listed property companies recorded in Hong Kong and China, while Singapore, The Philippines and Japan have shown low volatility spillovers. In terms of macroeconomic factors, gross domestic product (GDP) and money supply (MS) are the most significant factors in influencing the volatility spillover effect among pan-Asian countries. From the standpoint of regional investors, the volatility spillover characteristics of pan-Asian countries will aid property stakeholders in the region in developing their own methods for making investment decisions in the property security market. Furthermore, in uncertain conditions of the financial market, this study will elevate the transparency of the pan-Asian property portfolio market by providing information on the property market volatility spillovers. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

22 pages, 1597 KiB

Open AccessArticle

Sector Volatility Spillover and Economic Policy Uncertainty: Evidence from China’s Stock Market

by Xiaqing Su and Zhe Liu

Mathematics 2021, 9(12), 1411; https://doi.org/10.3390/math9121411 - 17 Jun 2021

Cited by 15 | Viewed by 2556

Abstract

Following generalized variance decomposition, we identify the transmission structure of financial shock among ten sectors in China. Then, we examine whether economic policy uncertainty (EPU) affects it through GARCH-MIDAS regression. We find that consumer discretionary, industrials, and materials sectors are systemically important industries [...] Read more.

Following generalized variance decomposition, we identify the transmission structure of financial shock among ten sectors in China. Then, we examine whether economic policy uncertainty (EPU) affects it through GARCH-MIDAS regression. We find that consumer discretionary, industrials, and materials sectors are systemically important industries during the sample period. Further research of dynamic analysis shows that each sector acts in a time-varying role in this structure. The results of the GARCH-MIDAS regression indicate that none of the selected EPU indexes has a significant long-term impact on the total volatility spillover of the inter-sector stock market in China. However, the EPUs do affect some sectors’ spillover indexes in the long run, and they are significantly heterogeneous. This paper can provide regulatory suggestions for policymakers and reasonable asset allocation and risk avoidance methods for investors. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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20 pages, 1575 KiB

Open AccessArticle

The Reduction of Initial Reserves Using the Optimal Reinsurance Chains in Non-Life Insurance

by Galina Horáková, František Slaninka and Zsolt Simonka

Mathematics 2021, 9(12), 1350; https://doi.org/10.3390/math9121350 - 11 Jun 2021

Cited by 1 | Viewed by 1566

Abstract

The aim of the paper is to propose, and give an example of, a strategy for managing insurance risk in continuous time to protect a portfolio of non-life insurance contracts against unwelcome surplus fluctuations. The strategy combines the characteristics of the ruin probability [...] Read more.

The aim of the paper is to propose, and give an example of, a strategy for managing insurance risk in continuous time to protect a portfolio of non-life insurance contracts against unwelcome surplus fluctuations. The strategy combines the characteristics of the ruin probability and the values VaR and CVaR. It also proposes an approach for reducing the required initial reserves by means of capital injections when the surplus is tending towards negative values, which, if used, would protect a portfolio of insurance contracts against unwelcome fluctuations of that surplus. The proposed approach enables the insurer to analyse the surplus by developing a number of scenarios for the progress of the surplus for a given reinsurance protection over a particular time period. It allows one to observe the differences in the reduction of risk obtained with different types of reinsurance chains. In addition, one can compare the differences with the results obtained, using optimally chosen parameters for each type of proportional reinsurance making up the reinsurance chain. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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25 pages, 3610 KiB

Open AccessArticle

Equilibrium Resolution Mechanism for Multidimensional Conflicts in Farmland Expropriation Based on a Multistage Van Damme’s Model

by Yang Tang, Kairong Hong, Yucheng Zou and Yanwei Zhang

Mathematics 2021, 9(11), 1208; https://doi.org/10.3390/math9111208 - 26 May 2021

Cited by 1 | Viewed by 1913

Abstract

Multidimensional conflicts in farmland expropriation originate from the game of multidimensional interests between the local government and farmers. The strategy choices and equilibrium results of the two sides have evolved with changes to the situation and policy adjustments. Focusing on different types of [...] Read more.

Multidimensional conflicts in farmland expropriation originate from the game of multidimensional interests between the local government and farmers. The strategy choices and equilibrium results of the two sides have evolved with changes to the situation and policy adjustments. Focusing on different types of farmland expropriation conflicts, this paper constructs a multistage Van Damme’s model of multidimensional conflicts in farmland expropriation, analyzes the stable equilibrium point of the behavior evolution of the local government and farmers under litigation settlement and nonlitigation settlement, and conducts simulation analysis on the behavior evolution and conflict resolution of both sides at different stages through MATLAB numerical simulation. The results show that (1) the interests’ game between the local government and farmers has changed periodically due to the evolution of the farmland expropriation system; (2) under litigation settlement, there is only the “government rent-seeking” conflict: in order to resolve the conflict, the cost of litigation for farmers can be reduced, while other policy interventions, such as controlling the rent-seeking ceiling of the local government and increasing the rent-seeking costs of the local government, can be implemented; (3) under nonlitigation settlement, there are three types of conflicts: to resolve the “government rent-seeking” conflict, we should control the rent-seeking ceiling of the local government and increase the rent-seeking costs of the local government or its positive social externality benefits under reasonable expropriation; to resolve the “nail household dilemma” conflict, we should increase the rent-seeking costs of farmers or their positive social externality benefits under reasonable compensation; to resolve the “extreme controversy” conflict, on the one hand, we should control the rent-seeking ceiling of farmers, and on the other hand, while controlling the rent-seeking ceiling of the local government, we should increase the farmers’ positive social externality benefits under reasonable compensation or negative social externality losses of both sides under rent seeking. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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18 pages, 7293 KiB

Open AccessArticle

Reverse Causality between Fiscal and Current Account Deficits in ASEAN: Evidence from Panel Econometric Analysis

by Maran Marimuthu, Hanana Khan and Romana Bangash

Mathematics 2021, 9(10), 1124; https://doi.org/10.3390/math9101124 - 15 May 2021

Cited by 3 | Viewed by 2151

Abstract

This study aims to explore the causal relationship between fiscal deficit (FD) and current account deficit (CAD) along with policy recommendations based on long-run and short-run dynamics and sensitivities. A panel data span from 1990 to 2019 is analyzed based on panel unit [...] Read more.

This study aims to explore the causal relationship between fiscal deficit (FD) and current account deficit (CAD) along with policy recommendations based on long-run and short-run dynamics and sensitivities. A panel data span from 1990 to 2019 is analyzed based on panel unit root tests, panel co-integration with auto-regressive distributed lag (ARDL), panel co-integration regression with fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS), and causal analysis with the Dumitrescu and Hurlin (DH) technique. The results disclosed that all tested variables are stationary at the first difference I(1) except the real interest rate (IR), which is stationary at level I(0). The ARDL estimates suggested that there is a long-run relationship between tested variables and 92% annual convergence is possible for long-run equilibrium. The FMOLS and DOLS estimates indicated that the CAD is sensitive towards the FD and the exchange rate. The DH causality test showed that the CAD is significantly affecting the FD, supporting the current account targeting hypothesis. Furthermore, it is observed that the interest rate is acting as a moderating factor between the FD and the CAD because it causes both the deficits. Thus, reverse causality is concluded from the CAD to the FD. These results have macroeconomic implications for fiscal policy in the Association of South-East Asian Nations (ASEAN-10). Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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12 pages, 874 KiB

Open AccessArticle

Envy-Free Allocation by Sperner’s Lemma Adapted to Rotation Shifts in a Company

by Sagrario Lantarón, Mariló López, Susana Merchán, Javier Rodrigo and José Samuel Rodríguez

Mathematics 2021, 9(9), 1015; https://doi.org/10.3390/math9091015 - 30 Apr 2021

Viewed by 1356

Abstract

This article discusses a theoretical construction based on the graph theory to rework the space of potential partitions in envy-free distribution. This work has the objective of applying Sperner’s lemma to the distribution of three rotating shifts for three workers who are to [...] Read more.

This article discusses a theoretical construction based on the graph theory to rework the space of potential partitions in envy-free distribution. This work has the objective of applying Sperner’s lemma to the distribution of three rotating shifts for three workers who are to cover a 24 h job position in a company. As a novel feature, worker’s preferences have been modeled as functions of probability for the three shifts, according to salary offers for said shifts. Envy-free allocation was achieved, since each worker received their preferred shift without the need for negotiation between agents in conflict. Adaptation to the type of dynamic situations that arise with rotating shifts, as well as the consideration of probabilistic preferences by workers are some of the main novelties of this work. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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25 pages, 564 KiB

Open AccessArticle

Core Predictors of Debt Specialization: A New Insight to Optimal Capital Structure

by Kanwal Iqbal Khan, Faisal Qadeer, Mário Nuno Mata, José Chavaglia Neto, Qurat ul An Sabir, Jéssica Nunes Martins and José António Filipe

Mathematics 2021, 9(9), 975; https://doi.org/10.3390/math9090975 - 27 Apr 2021

Cited by 9 | Viewed by 3177

Abstract

Debt structure composition is an essential topic of discussion for the management of capital structure decisions. Researchers made extensive efforts to understand the criteria for selecting debts, specifically, to know about the reasons for debt specialization, concealed in identifying its predictors. This question [...] Read more.

Debt structure composition is an essential topic of discussion for the management of capital structure decisions. Researchers made extensive efforts to understand the criteria for selecting debts, specifically, to know about the reasons for debt specialization, concealed in identifying its predictors. This question is essential not only for establishing the field of debt structure but also for the financial managers to design corporate financial strategy in a way that leads to attaining an optimal debt structure. Sophisticated financial modeling is applied to identify the core predictors of debt specialization, influencing the strategic choices of optimal debt structure to address this issue. Data were collected from 419 non-financial companies listed at the Karachi Stock Exchange from 2009 to 2015. This study has validated debt specialization by showing that short-term debts maintain their position over the years and remain the most popular type of loan among Pakistani firms. Further, it provides a comprehensive view of the cross-sectional differences among the firms involved in debt specialization by applying a holistic approach. Results show that small, growing, dividend-paying companies, having high expense and risk ratios, followed the debt specialization strategy. This strategy enables firms to reduce their agency conflicts, transaction costs, information asymmetry, risk management and building up their good market reputation. Conclusively, we have identified the gross profit margin, long-term debt to asset ratio, firm size, age, asset tangibility, and long-term industry debt to asset ratio as reliable and core predictors of debt specialization for sustainable business growth. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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16 pages, 969 KiB

Open AccessArticle

Statistical Significance Revisited

by Maike Tormählen, Galiya Klinkova and Michael Grabinski

Mathematics 2021, 9(9), 958; https://doi.org/10.3390/math9090958 - 25 Apr 2021

Cited by 4 | Viewed by 2705

Abstract

Statistical significance measures the reliability of a result obtained from a random experiment. We investigate the number of repetitions needed for a statistical result to have a certain significance. In the first step, we consider binomially distributed variables in the example of medication [...] Read more.

Statistical significance measures the reliability of a result obtained from a random experiment. We investigate the number of repetitions needed for a statistical result to have a certain significance. In the first step, we consider binomially distributed variables in the example of medication testing with fixed placebo efficacy, asking how many experiments are needed in order to achieve a significance of 95%. In the next step, we take the probability distribution of the placebo efficacy into account, which to the best of our knowledge has not been done so far. Depending on the specifics, we show that in order to obtain identical significance, it may be necessary to perform twice as many experiments than in a setting where the placebo distribution is neglected. We proceed by considering more general probability distributions and close with comments on some erroneous assumptions on probability distributions which lead, for instance, to a trivial explanation of the fat tail. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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17 pages, 624 KiB

Open AccessArticle

The Impact of Candidates’ Profile and Campaign Decisions in Electoral Results: A Data Analytics Approach

by Camilo Campos-Valdés, Eduardo Álvarez-Miranda, Mauricio Morales Quiroga, Jordi Pereira and Félix Liberona Durán

Mathematics 2021, 9(8), 902; https://doi.org/10.3390/math9080902 - 19 Apr 2021

Viewed by 2315

Abstract

In recent years, a wide range of techniques has been developed to predict electoral results and to measure the influence of different factors in these results. In this paper, we analyze the influence of the political profile of candidates (characterized by personal and [...] Read more.

In recent years, a wide range of techniques has been developed to predict electoral results and to measure the influence of different factors in these results. In this paper, we analyze the influence of the political profile of candidates (characterized by personal and political features) and their campaign effort (characterized by electoral expenditure and by territorial deployment strategies retrieved from social networks activity) on the electoral results. This analysis is carried out by using three of the most frequent data analyitcs algorithms in the literature. For our analysis, we consider the 2017 Parliamentary elections in Chile, which are the first elections after a major reform of the electoral system, that encompassed a transition from a binomial to a proportional system, a modification of the districts’ structure, an increase in the number of seats, and the requirement of gender parity in the lists of the different coalitions. The obtained results reveal that, regardless of the political coalition, the electoral experience of candidates, in particular in the same seat they are running for (even when the corresponding district is modified), is by large the most influential factor to explain the electoral results. However, the attained results show that the influence of other features, such as campaign expenditures, depends on the political coalition. Additionally, by means of a simulation procedure, we show how different levels of territorial deployment efforts might impact on the results of candidates. This procedure could be used by parties and coalitions when planning their campaign strategies. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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22 pages, 341 KiB

Open AccessArticle

Multidimensional Fair Fuzzy Equilibrium Evaluation of Housing Expropriation Compensation from the Perspective of Behavioral Preference: A Case Study from China

by Zhaoyu Cao, Xu Zhao, Yucheng Zou, Kairong Hong and Yanwei Zhang

Mathematics 2021, 9(6), 650; https://doi.org/10.3390/math9060650 - 18 Mar 2021

Viewed by 1313

Abstract

With the rapid development of urbanization, substantial land areas and houses are expropriated, which can cause huge numbers of disputes related to expropriation compensation. The root of the disputes is that the associated subjects are affected by various behavioral preferences and make different [...] Read more.

With the rapid development of urbanization, substantial land areas and houses are expropriated, which can cause huge numbers of disputes related to expropriation compensation. The root of the disputes is that the associated subjects are affected by various behavioral preferences and make different cognitive fairness judgments based on the same compensation price. However, the existing expropriation compensation strategies based on the market value under the assumption of “the economic man” hypothesis cannot meet the fairness preference demands of the expropriated. Therefore, finding a compensation price that satisfies subjects’ multidimensional fairness preferences, including profit-seeking, loss aversion, and interactive fairness preferences, is necessary. Only in this way can the subjects reach an agreement regarding fair compensation and resolve their disputes. Because of the fuzziness of subjects’ expected revenues, this paper innovatively introduces trigonometric intuitional fuzzy numbers to construct one-dimensional and multidimensional fair fuzzy equilibrium evaluation models. The Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS) method is adopted to convert a multidimensional problem into a multiattribute group decision problem, which simplifies the problem of finding multidimensional equilibrium when considering the multidimensional fairness preferences of the two subjects. Real case data are introduced to verify the validity of this method. The research results show that upward revision of the multidimensional fairness preferences based on the market value assists in achieving a fair compensation agreement. Consideration of the influence of the subjects’ multidimensional fairness preferences on the fairness equilibrium is conducive to resolving the disputes, and provides a reference for the settlement of expropriation compensation disputes in developing countries. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

19 pages, 1581 KiB

Open AccessArticle

E-Commerce Supply Chain Models under Altruistic Preference

by Yuyan Wang, Zhaoqing Yu, Liang Shen and Wenquan Dong

Mathematics 2021, 9(6), 632; https://doi.org/10.3390/math9060632 - 16 Mar 2021

Cited by 14 | Viewed by 2565

Abstract

This paper reviews the decisions, coordination contract, and altruistic preference of an e-commerce supply chain (eSC) composed of a manufacturer and a third-party e-commerce platform (platform). The research derives optimal decisions in a decentralized model with altruistic preference; it is indicated that altruistic [...] Read more.

This paper reviews the decisions, coordination contract, and altruistic preference of an e-commerce supply chain (eSC) composed of a manufacturer and a third-party e-commerce platform (platform). The research derives optimal decisions in a decentralized model with altruistic preference; it is indicated that altruistic preference can help increase the sales price and sales service level. Although the platform’s altruistic preference is not beneficial to its own profits, it can help increase the manufacturer’s profits. Moreover, when the degree of altruistic preference is kept within a limit, the profit of the decentralized system is higher in a model with altruistic preferences, which indicates that altruistic preference can contribute toward maintaining a friendly, harmonious, and cooperative a relationship between the platform and manufacturers. Contrary to a traditional offline supply chain, where the sales price is the lowest in the centralized model, the sales price is highest in a centralized eSC model. In the proposed coordination contract, the platform with a certain degree of altruistic preference offers zero-commission sales service and charges a certain amount for a fixed professional service fee. The proposed contract is more applicable to products whose market demands are less affected by sales prices and more affected by the sales service level. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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18 pages, 1777 KiB

Open AccessArticle

Blockchain Technology for Winning Consumer Loyalty: Social Norm Analysis Using Structural Equation Modeling

by María de los Ángeles Pérez-Sánchez, Zhuowei Tian, Almudena Barrientos-Báez, José Gómez-Galán and Hanliang Li

Mathematics 2021, 9(5), 532; https://doi.org/10.3390/math9050532 - 04 Mar 2021

Cited by 14 | Viewed by 3588

Abstract

Remarkable changes have taken in social operation mode and consumers’ behavior mode because of the foot ban during the pandemic spread of COVID-19. Digital technologies such as Blockchain have shown potential in gaining competitive advantages for enterprises in such situations. This study aims [...] Read more.

Remarkable changes have taken in social operation mode and consumers’ behavior mode because of the foot ban during the pandemic spread of COVID-19. Digital technologies such as Blockchain have shown potential in gaining competitive advantages for enterprises in such situations. This study aims to provide an insight into how to gain consumer loyalty through the use of modern and efficient Blockchain technology. In contrast to the current literature, this study combined the technology acceptance model of planned behavior theory, social exchange theory to explain the loyalty of an online travel agency (OTA) consumer. A self-administered questionnaire was used to collect data from citizens in Hangzhou, a city full of technological innovation atmosphere. Using structural equation modeling with SmartPLS©, responses from 1403 citizens were analyzed. Social norm was discovered to have a positive and significant association with the consumers’ attitude toward technology and thus enhancing the perceived usability and hedonism of OTA application, which can increase consumer loyalty. The findings suggested OTAs may gain consumers’ loyalty through adopting Blockchain technology, and local governments have played a key role in creating such an environment. New technologies have become essential professional and social tools for society. The technological environment and Blockchain within the tourism sector are fundamental elements of China’s economic engine. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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24 pages, 8270 KiB

Open AccessArticle

Testing the Resilience of CSR Stocks during the COVID-19 Crisis: A Transcontinental Analysis

by María del Carmen Valls Martínez and Pedro Antonio Martín Cervantes

Mathematics 2021, 9(5), 514; https://doi.org/10.3390/math9050514 - 02 Mar 2021

Cited by 13 | Viewed by 2826

Abstract

Investors and practitioners are increasingly concerned with financial assets within the scope of corporate social responsibility (CSR) meaning that, in recent times, such assets have become enshrined in the preferences of the new generations of investors and consumers. Just when the interest of [...] Read more.

Investors and practitioners are increasingly concerned with financial assets within the scope of corporate social responsibility (CSR) meaning that, in recent times, such assets have become enshrined in the preferences of the new generations of investors and consumers. Just when the interest of investors was at its highest, SARS-CoV-2 (COVID-19) affected all international financial markets, so that, at first sight, it might seem that the financial assets assigned to CSR should have suffered collapses that were identical to the rest; however, our work shows the opposite, providing a comparative analysis of how the pandemic has affected the financial markets of each continent to demonstrate its outstanding resilience through the use of the Wavelets methodology. We analyzed the global impact of the registered cases of COVID-19 on the Dow Jones Sustainability World Index (DJSWI), the world’s leading indicator of sustainable companies, in addition to six other financial indices selected from each continent. The empirical results of this research show that the worldwide repercussions of the sudden outbreak of SARS-CoV-2 has had a substantially smaller effect on sustainability-related indices compared to the other considered indices. Similarly, the methodology employed allowed the establishment of a chronogram with details of the dating of COVID-19 expansion through the considered countries, a certain gradation in terms of the impact of the pandemic on these stock indices, and certain common guidelines describing their devastating effects on each of the financial markets represented by the indices in this research. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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16 pages, 5117 KiB

Open AccessArticle

Assessing the Time-Frequency Co-Movements among the Five Largest Engineering Consulting Companies: A Wavelet-Base Metrics of Contagion and VaR Ratio

by Marcos Albuquerque Junior, José António Filipe, Paulo de Melo Jorge Neto and Cristiano da Costa da Silva

Mathematics 2021, 9(5), 504; https://doi.org/10.3390/math9050504 - 01 Mar 2021

Viewed by 1370

Abstract

Diversification in a portfolio is an important tool for the systematic risk management that is inherent to different asset classes. The composition of a portfolio with domestic and international assets is seen as one of the main alternatives for building a diversified portfolio, [...] Read more.

Diversification in a portfolio is an important tool for the systematic risk management that is inherent to different asset classes. The composition of a portfolio with domestic and international assets is seen as one of the main alternatives for building a diversified portfolio, as this approach tends to reduce portfolio return exposure depending on country factors. However, in scenarios where industry factors are predominant, international diversification can increase systematic risk in a portfolio centered on a single asset class. This study is a pioneer in using wavelet-based methods to identify intersectoral co-movements, based on a portfolio of shares of the world’s top five consulting engineering companies, providing an innovative way to be applied to this phenomenon. Our evidence indicates that companies share a strong pattern of co-movements among themselves, especially in cycles of 32 to 64 days, suggesting a higher exposure to risk for portfolios with an investment horizon in long-term cycles. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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23 pages, 2271 KiB

Open AccessArticle

Research on Agricultural Cooperation Potential between China and CEE Countries Based on Resource Complementarity

by Ru Guo, Xiaodong Qiu and Yiyi He

Mathematics 2021, 9(5), 503; https://doi.org/10.3390/math9050503 - 01 Mar 2021

Cited by 3 | Viewed by 1989

Abstract

Central and East European (CEE) countries are attractive among emerging markets due to a combination of factors such as economic growth and market potential. Although the CEE countries as a whole have a very high degree of connectivity, each country has different market [...] Read more.

Central and East European (CEE) countries are attractive among emerging markets due to a combination of factors such as economic growth and market potential. Although the CEE countries as a whole have a very high degree of connectivity, each country has different market opportunities and external environment, so agricultural enterprises wanting to enter the CEE market must take into account the diverse and complex resource base of CEE countries. In the light of economic globalization, China and CEE countries face mutual opportunities and challenges, and it is necessary to strengthen agricultural cooperation. The potential of agricultural investment cooperation between China and CEE countries is the basis for multinational enterprises to allocate resources and implement internationalization strategies rationally. The purpose of this paper is to analyze theagricultural cooperation potential between China and CEE countries in the perspective of resource complementarity, with a selection of macro data related to agricultural capacity from 2009–2018. In particular, this study examines the differences and complementarities between China and CEE countries in terms of agricultural resource conditions and product output and trade; by constructing an agricultural cooperation potential evaluation model, the entropy value method is applied to predict and evaluate the potential characteristics of agricultural cooperation between China and CEE countries in 2021–2025. The research results show that the current intermittent and episodic nature of agricultural cooperation between China and CEE countries does not match the high or medium-high level of complementarity between agricultural production factors. Thus, agricultural enterprises can utiliza such considerable cooperation potential based on the resource complementarity to develop internationalization strategies and overseas investment. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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38 pages, 10589 KiB

Open AccessArticle

Optimisation of Time-Varying Asset Pricing Models with Penetration of Value at Risk and Expected Shortfall

by Adeel Nasir, Kanwal Iqbal Khan, Mário Nuno Mata, Pedro Neves Mata and Jéssica Nunes Martins

Mathematics 2021, 9(4), 394; https://doi.org/10.3390/math9040394 - 17 Feb 2021

Cited by 1 | Viewed by 2445

Abstract

This study aims to apply value at risk (VaR) and expected shortfall (ES) as time-varying systematic and idiosyncratic risk factors to address the downside risk anomaly of various asset pricing models currently existing in the Pakistan stock exchange. The study analyses the significance [...] Read more.

This study aims to apply value at risk (VaR) and expected shortfall (ES) as time-varying systematic and idiosyncratic risk factors to address the downside risk anomaly of various asset pricing models currently existing in the Pakistan stock exchange. The study analyses the significance of high minus low VaR and ES portfolios as a systematic risk factor in one factor, three-factor, and five-factor asset pricing model. Furthermore, the study introduced the six-factor model, deploying VaR and ES as the idiosyncratic risk factor. The theoretical and empirical alteration of traditional asset pricing models is the study’s contributions. This study reported a strong positive relationship of traditional market beta, value at risk, and expected shortfall. Market beta pertains its superiority in estimating the time-varying stock returns. Furthermore, value at risk and expected shortfall strengthen the effects of traditional beta impact on stock returns, signifying the proposed six-factor asset pricing model. Investment and profitability factors are redundant in conventional asset pricing models. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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24 pages, 3353 KiB

Open AccessArticle

Models of Wealth and Inequality Using Fiscal Microdata: Distribution in Spain from 2015 to 2020

by Ignacio González García and Alfonso Mateos Caballero

Mathematics 2021, 9(4), 377; https://doi.org/10.3390/math9040377 - 13 Feb 2021

Cited by 1 | Viewed by 1693

Abstract

In this research, we used Spanish wealth distribution microdata for the period 2015–2020 to provide a general framework for comparing different models and explaining different empirical datasets related to wealth distribution. We present a methodology to output the current value of assets and [...] Read more.

In this research, we used Spanish wealth distribution microdata for the period 2015–2020 to provide a general framework for comparing different models and explaining different empirical datasets related to wealth distribution. We present a methodology to output the current value of assets and participations held by the population in order to calculate their real and current distribution. We propose a new methodology for mixture analysis, whereby we identify and analyze subpopulations and then go on to study their influence on wealth distribution. We use concepts of symmetry to identify two internal processes that are characteristic of the wealth accumulation process for the subpopulations of entrepreneurs and non-entrepreneurs. Finally, we propose a method to adjust these results to other empirical data in other countries and periods, providing a methodology for comparing results output with differing data granularity. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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14 pages, 315 KiB

Open AccessArticle

Factors Associated with Spa Tourists’ Satisfaction

by Rosa Anaya-Aguilar, German Gemar and Carmen Anaya-Aguilar

Mathematics 2021, 9(4), 332; https://doi.org/10.3390/math9040332 - 07 Feb 2021

Cited by 10 | Viewed by 3278

Abstract

Most spas are surrounded by beautiful natural environments, so these facilities contribute to sustainable economic development and their guests are national and local tourists with a high average stay. This study has the objective of analyzing the factors associated with the level of [...] Read more.

Most spas are surrounded by beautiful natural environments, so these facilities contribute to sustainable economic development and their guests are national and local tourists with a high average stay. This study has the objective of analyzing the factors associated with the level of satisfaction and the profile of spa tourists in Andalusia, southern Spain. The methodology used was a quantitative study based on a stratified cross-sectional survey. Each stratum was a spa, with a population of 53,231 users per year, whose final sample included 725 users. The results found were that the profile of Andalusian spa tourists is predominantly female, over 56 years old, and retired with average incomes below one thousand euros. The level of satisfaction of its users is above the average in the factors of accommodation, restaurants, spa, and public roads and natural environment and most of these clients would recommend it to others [92.4%] and express the intention to return [63.6%] which indicates that Andalusian spas show a very high level of customer loyalty. The study has the limitation of being cross-sectional quantitative research carried out in Andalusia that could be complemented in future research with a qualitative study with experts. The research presents contributions for companies since they could develop strategies to attract users with younger profiles with activities, prices, or spaces that are more appropriate to their needs and seek the conditions to increase the satisfaction of these segments. The study is original since this research is a quantitative study that shows the real profile of the Andalusian spa tourist and their high level of satisfaction with the spa and their loyalty. The surveys were conducted at each spa by a face-to-face researcher with a response rate of 98%. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

23 pages, 907 KiB

Open AccessArticle

Identifying Decisive Socio-Political Sustainability Barriers in the Supply Chain of Banking Sector in India: Causality Analysis Using ISM and MICMAC

by Wen-Kuo Chen, Venkateswarlu Nalluri, Man-Li Lin and Ching-Torng Lin

Mathematics 2021, 9(3), 240; https://doi.org/10.3390/math9030240 - 26 Jan 2021

Cited by 11 | Viewed by 2757

Abstract

The banking sector often plays a crucial role in the improvement of infrastructure and economy of any country. In many emerging economies, it is apparent that a wide variety of social and political issues are related to the associated supply chain sustainability of [...] Read more.

The banking sector often plays a crucial role in the improvement of infrastructure and economy of any country. In many emerging economies, it is apparent that a wide variety of social and political issues are related to the associated supply chain sustainability of financial service firms. Although such sustainability and its implementation issues have largely been addressed in existing research literature and in practice for many years, the attention towards socio-political sustainability aspects has been quite limited. Thus, this study attempted to explore the determinants for improving socio-political sustainability in financial service firms. Through adopting the fuzzy Delphi method (FDM), performing an exhaustive literature review, and conducting semi-structured interviews with the decision-makers of the service firms, nine key barriers for socio-political sustainability were first identified in this study. Then, the influence relationships of the key barriers were assessed by 15 experts. During the assessment process, the interrelationships and their dependence powers among key barriers were analyzed using the interpretive structural modelling (ISM) approach and cross-impact matrix multiplication applied to classification (MICMAC) methods. The assessment results show that among the studied barriers, “antisocial considerations”, “unstable political climate”, and “lack of political coherence” are the decisive barriers that affect the socio-political sustainability in the supply chain of financial service firms. The knowledge in understanding and reducing these decisive barriers can provide service sector practitioners, especially those with limited resources, the enhanced capability to conduct better planning and designing of effective and continuous improvement programs, so as to win over new consumers and retain existing clients by offering sustainable services. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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18 pages, 1097 KiB

Open AccessArticle

Resource Allocation Effect of Green Credit Policy: Based on DID Model

by Guangyou Zhou, Chen Liu and Sumei Luo

Mathematics 2021, 9(2), 159; https://doi.org/10.3390/math9020159 - 14 Jan 2021

Cited by 46 | Viewed by 4223

Abstract

From the perspective of the policy impact effect, this paper takes green enterprises as the treatment group and polluters as the control group. Firstly, the double difference method (DID) was adopted to study the effect of green credit policy on enterprises from two [...] Read more.

From the perspective of the policy impact effect, this paper takes green enterprises as the treatment group and polluters as the control group. Firstly, the double difference method (DID) was adopted to study the effect of green credit policy on enterprises from two aspects, namely the amount of loans obtained by enterprises and the financing cost. The study found that in terms of loan volume, the launch of “Green Credit Guidelines” enabled green enterprises to obtain more credit resources than polluters. In terms of financing cost, green credit policy means green enterprises obtain lower financing cost than polluters. The triple difference method is further used to test the impact of green Credit Guidelines on the access to credit resources and financing costs of enterprises. The results show that for enterprises with different property rights, the effect of green credit policy on non-state-owned enterprises is more significant than that of state-owned enterprises. For enterprises in different regions, the policy effect of green credit policy on enterprises in regions with relatively backward economic development levels is more significant than that of enterprises in regions with relatively developed economic development level. From the empirical results, the policy basically realized the original intention of directing credit resources to green enterprises and realized the Pareto improvement of financial resource allocation. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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20 pages, 2342 KiB

Open AccessArticle

The Study of Events Approach Applied to the Impact of Mergers and Acquisitions on the Performance of Consulting Engineering Companies

by Marcos Albuquerque Junior, José António Filipe, Paulo de Melo Jorge Neto and Cristiano da Silva

Mathematics 2021, 9(2), 130; https://doi.org/10.3390/math9020130 - 09 Jan 2021

Cited by 4 | Viewed by 2980

Abstract

Recent research suggests that one of the main motivations for mergers and acquisitions is the attempt to acquire companies to incorporate intangible assets. Such assets provide important sources of sustainable competitive advantages and opportunities for growth. This article analyzes the strategies of engineering [...] Read more.

Recent research suggests that one of the main motivations for mergers and acquisitions is the attempt to acquire companies to incorporate intangible assets. Such assets provide important sources of sustainable competitive advantages and opportunities for growth. This article analyzes the strategies of engineering companies, as well as value creation in acquisition events of multinational companies, by using the study of the events method, providing an innovative way to be applied to this phenomenon. This method is used in our research to study the influence of the announcement of acquisitions on the abnormal accumulated returns of the acquiring companies, and is allowed to confirm that influence. In general, the average accumulated returns were positive and statistically significant in the three windows of the method, according to the significance tests used. The results validate the hypothesis that the events generate synergy gains for market players, emphasizing the importance of growth via acquisitions for the sector under analysis. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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13 pages, 299 KiB

Open AccessArticle

The Optimal Limit Prices of Limit Orders under an Extended Geometric Brownian Motion with Bankruptcy Risk

by Yu-Sheng Hsu, Pei-Chun Chen and Cheng-Hsun Wu

Mathematics 2021, 9(1), 54; https://doi.org/10.3390/math9010054 - 29 Dec 2020

Cited by 1 | Viewed by 1528

Abstract

In the Black and Scholes system, the underlying asset price model follows geometric Brownian motion (GBM) with no bankruptcy risk. While GBM is a commonly used model in financial markets, bankruptcy risk should be considered in the case of a severe economic crisis, [...] Read more.

In the Black and Scholes system, the underlying asset price model follows geometric Brownian motion (GBM) with no bankruptcy risk. While GBM is a commonly used model in financial markets, bankruptcy risk should be considered in the case of a severe economic crisis, such as that caused by the COVID-19 pandemic. The omission of bankruptcy risk could considerably influence the setting of a trading strategy. In this article, we adopt an extended GBM model that considers the bankruptcy risk and study its optimal limit price problem. A limit order is a classical trading strategy for investing in stocks. First, we construct the explicit expressions of the expected discounted profit functions for sell and buy limit orders and then derive their optimal limit prices. Furthermore, via sensitivity analysis, we discuss the influence of the omission of bankruptcy risk in executing limit orders. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

19 pages, 6317 KiB

Open AccessArticle

Incorporating Outsourcing Strategy and Quality Assurance into a Multiproduct Manufacturer–Retailer Coordination Replenishing Decision

by Yuan-Shyi Peter Chiu, Victoria Chiu, Tsu-Ming Yeh and Hua-Yao Wu

Mathematics 2020, 8(12), 2212; https://doi.org/10.3390/math8122212 - 13 Dec 2020

Cited by 2 | Viewed by 1600

Abstract

This study explores the multiproduct manufacturer-retailer coordination replenishing decision featuring outsourcing strategy and product quality assurance. Globalization has generated enormous opportunities. Consequently, transnational firms now face tough competition in global markets. To stay competitive, a firm should meet the client’s multi-item and quality [...] Read more.

This study explores the multiproduct manufacturer-retailer coordination replenishing decision featuring outsourcing strategy and product quality assurance. Globalization has generated enormous opportunities. Consequently, transnational firms now face tough competition in global markets. To stay competitive, a firm should meet the client’s multi-item and quality requirements under capacity constraints and optimize the intra-supply chain system to allow the timely distribution of finished goods under minimum system cost. The outsourcing option is considered to release machine loadings and reduce cycle time effectively. All items fabricated are screened for quality, and reworkable and scrap items are separated. Any reworked items that fail the quality reassurance screening are discarded, whereas all outsourced products are quality-guaranteed by the provider. A fixed-quantity multi-shipment plan is used when the whole finished lot is quality-ensured to help present-day transnational firms gain competitive advantage by making efficient and cost-effective multiproduct manufacturing and delivering decisions. Mathematical modeling is built to portray the system’s characteristics, and conventional differential calculus is used to solve and derive the optimal operating policy for the proposed problem. Simultaneously, we find the optimal delivery frequency and common cycle time for the problem mentioned above. A simulated numerical example and sensitivity analysis demonstrate the research result’s capability and applicability. Our precise analytical model can reveal/highlight the impact of deviations in quality- and outsourcing-related features on the optimal operating policy and several performance indicators that help managerial decision-making. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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27 pages, 5287 KiB

Open AccessArticle

Risk Analysis through the Half-Normal Distribution

by Maria-Teresa Bosch-Badia, Joan Montllor-Serrats and Maria-Antonia Tarrazon-Rodon

Mathematics 2020, 8(11), 2080; https://doi.org/10.3390/math8112080 - 21 Nov 2020

Cited by 5 | Viewed by 3070

Abstract

We study the applicability of the half-normal distribution to the probability–severity risk analysis traditionally performed through risk matrices and continuous probability–consequence diagrams (CPCDs). To this end, we develop a model that adapts the financial risk measures Value-at-Risk (VaR) and Conditional Value at Risk [...] Read more.

We study the applicability of the half-normal distribution to the probability–severity risk analysis traditionally performed through risk matrices and continuous probability–consequence diagrams (CPCDs). To this end, we develop a model that adapts the financial risk measures Value-at-Risk (VaR) and Conditional Value at Risk (CVaR) to risky scenarios that face only negative impacts. This model leads to three risk indicators: The Hazards Index-at-Risk (HIaR), the Expected Hazards Damage (EHD), and the Conditional HIaR (CHIaR). HIaR measures the expected highest hazards impact under a certain probability, while EHD consists of the expected impact that stems from truncating the half-normal distribution at the HIaR point. CHIaR, in turn, measures the expected damage in the case it exceeds the HIaR. Therefore, the Truncated Risk Model that we develop generates a measure for hazards expectations (EHD) and another measure for hazards surprises (CHIaR). Our analysis includes deduction of the mathematical functions that relate HIaR, EHD, and CHIaR to one another as well as the expected loss estimated by risk matrices. By extending the model to the generalised half-normal distribution, we incorporate a shape parameter into the model that can be interpreted as a hazard aversion coefficient. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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14 pages, 297 KiB

Open AccessArticle

The Impact of Teamwork on an Organization’s Performance: A Cooperative Game’s Approach

by Gholamreza Askari, Nader Asghri, Madjid Eshaghi Gordji, Heshmatolah Asgari, José António Filipe and Adel Azar

Mathematics 2020, 8(10), 1804; https://doi.org/10.3390/math8101804 - 16 Oct 2020

Cited by 7 | Viewed by 16283

Abstract

In this article, we study the impact of teamwork on an organization’s performance, considering a cooperative game’s framework. To promote teamwork culture, performance indexes were considered both individually and collectively, and by comparing the scores that every employee earned individually and collectively, their [...] Read more.

In this article, we study the impact of teamwork on an organization’s performance, considering a cooperative game’s framework. To promote teamwork culture, performance indexes were considered both individually and collectively, and by comparing the scores that every employee earned individually and collectively, their differences became obvious. In this approach, a cooperative game’s model was used in order to improve the organization’s performance. The proposed model, in addition to evaluating the organization and employee’s activities, implemented all payments, including overtime pay, rewards, etc., fairly and along with increasing performance and satisfaction. The cooperative approach created effective communications between employees and authorities and enhanced their motivation for teamwork. Moreover, results could be used for decisions related to employees (such as promotion, transition, firing, and secondment), analysis of training requirements, employees’ development, and research and plan valuation. Our findings show that the collaborative coefficient (CC) is a key factor in increasing productivity and improving the efficiency of an organization in the long run. The collaborative coefficient is a new concept in teamwork that has rarely been considered in scientific research. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

19 pages, 635 KiB

Open AccessArticle

Identifying Big Data’s Opportunities, Challenges, and Implications in Finance

by Huidong Sun, Mustafa Raza Rabbani, Muhammad Safdar Sial, Siming Yu, José António Filipe and Jacob Cherian

Mathematics 2020, 8(10), 1738; https://doi.org/10.3390/math8101738 - 10 Oct 2020

Cited by 35 | Viewed by 8010

Abstract

One of the latest innovations in business and technology is the use of big data, as daily data are generated by billions of events. The big data issue is now considered in the accountants and finance professionals’ field as one of the most [...] Read more.

One of the latest innovations in business and technology is the use of big data, as daily data are generated by billions of events. The big data issue is now considered in the accountants and finance professionals’ field as one of the most important sources for the analysis of financial products and services. This study is very innovative, with our research aiming to identify the opportunities, challenges, and implications of big data in the finance area. It is our purpose to find competitive advantages in terms of the extent to which big data brings visible benefits, also pointing out the challenges that a company may face in this field, such as cases of customers’ data security or customer satisfaction processes. The identification of this kind of dynamics allows us to draw conclusions on the advantages of big data based on these analyses and big data’s deep impact on finance. In particular, big data is now commonly used by financial institutions and banks for analytical purposes in financial market contexts. We conducted an exploratory survey of the existing literature to highlight such connections. In the last part of our study, we also propose directions for future research. Full article

(This article belongs to the Special Issue Application of Mathematical Methods to Economics, Management, Finance and Social Problems)

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