Archives of Business Research

The efficient market hypothesis is usually addressed indirectly: what happens if a direct approach is used instead?

Greg Samsa — Sat, 12 Jun 2021 00:00:00 +0000

A vast literature on putative market inefficiencies compares the results of an investment strategy which takes advantage of the putative inefficiency against a null hypothesis generated by the efficient market hypothesis (EMH). Even if negative, such studies do not provide direct evidence in favor of the EMH. To directly assess a key component of the EMH, namely that stock returns lack memory, we created 30-year portfolios by sampling annual market returns from 1926-2019 with replacement, and then compared the results with the historical record of actual 30-year returns. Although centered on the correct amount, the EMH-based 30-year returns were notably more variable than the historical 30-year returns. One possible explanation is that market returns regress toward their mean in the long term. This demonstrates that while the EMH should be taken seriously, it need not always be taken literally.

Digital Transformation: From Data Analytics to Customer Solutions. A Framework of Types, Techniques and Tools

Michail Angelopoulos, Yannis Pollalis — Fri, 11 Jun 2021 00:00:00 +0000

It has become clear by now that the digital transformation has an obvious, lasting impact as much on the economic systems and commercial players as on the lives of individuals and on society at large. The decisions we make, our actions, even our existence in the digital world result in the production of massive amounts of data. These data can be integrated into large data analysis ecosystems and contribute positively to the revision of current business models and practices. Machine learning algorithms combined with the suitable tools, such as Python, turn raw data into useful information and lead to critical and correct decisions. The aim of this paper is to present a review of current popular and useful data analytics techniques and tools that lead to custom solutions for both customer and business. The most famous techniques based on Machine learning and visualization tools are represented here.

Reinventing Performance Management

Derek Crews — Fri, 11 Jun 2021 00:00:00 +0000

Performance appraisals have traditionally been conducted annually or semi-annually. Recently, many companies are transitioning to ongoing feedback and coaching, either in addition to periodic appraisals, or lieu of them. There have also been calls for completely reinventing performance management systems, as the result of an abundance of research that indicates performance processes are over-engineered and time-consuming, and they tend to demotivate employees while hindering candid and honest conversations. This paper examines the common problems with attribution error and rater bias in traditional performance appraisal systems. Five mini-case studies are then presented by exploring how five large companies (Netflix, Adobe, Deloitte, IBM, GE), have reinvented the way in which performance management is implemented. The paper examines why these companies moved away from traditional performance appraisal and what processes replaced it. The paper also identifies emerging trends that will impact the future of performance management and offers suggestions for the road ahead.

What constitutes a majority in Curaçao Government? An analysis of the results of Curaçao’s March 2021 elections

Miguel Goede, Everardus van de Meent — Fri, 11 Jun 2021 00:00:00 +0000

The objective of this case study is to examine the current electoral system of Curaçao to ascertain whether it provides adequate representation of its constituents. The current system is imbalanced because it favors the larger political parties disproportionally, which leads to a distortion of the will of the voter. The results from the most recent election held in March 2021 were compiled and examined. An alternative system was considered to gain insight into the detrimental effects of the current system. An evaluation of the current system employed to allocate seats after the election were found to be inequitable, suggesting that measures should be taken to enhance the legitimacy of the system by better reflecting the will of the voters. Given that it has been decades since the system was examined, this research provides an updated foundation for considering alternative allocation procedures that would be more consistent with a healthy representative democracy.

Data Analytics to Improve Customer Energy Efficiency

Michail Angelopoulos, Yannis Pollalis — Fri, 11 Jun 2021 00:00:00 +0000

This research focuses on providing insights for a solution for collecting, storing, analyzing and visualizing data from customer energy consumption patterns. The data analysis part of our research provides the models for knowledge discovery that can be used to improve energy efficiency at both producer and consumer ends.

Τhe study sets a new analytical framework for assessing the role of behavioral knowledge in energy efficiency using a wide range of Case Studies, Experiments, Research, Information and Communication Technologies (ICT) in combination with the most modern econometric methods and large analytical data taking into account the characteristics of the study participants (household energy customers).