Market Model Research Articles

Cultural and Natural Heritage Concerns and Cost of Equity: Case of Global Cement and Cement-Related Industries

In recent business landscape, term of Sustainable Development Goals (SDGs) and Environmental, Social, and Governance (ESG) is interesting for many investors who concern on that. By implementing SDGs and ESG, investors and companies are expect to participate in the world sustainable development target. One of the SDG metric is strengthen efforts to protect and safeguard the world’s cultural and natural heritage. With the 75 samples of cement and cement-related company across the world, this thesis delves into the nuanced of relationship between cultural and natural heritage issues and its cost of equity. Recognizing the profound impact of cultural and natural heritage concerns on corporate reputation, social license to operate, as well investor’s perception, this research endeavors to elucidate the intricate interplay between these variables through research approach encompassing quantitative methodologies. The result of this research is showing that cultural and natural heritage issue is negatively correlate to the cost of equity which means the better the cultural and natural heritage score of a company, the lower its cost of equity among its peers. The regression analysis result in P-Value 0.016; coefficient -6.12 for cultural and natural heritage index impact to cost of equity (in market model) and in P-Value 0.033; coefficient -5.30 for cultural and natural heritage index impact to cost of equity (in Bloomberg CAPM), which considered significant. Implication of these finding are that cultural and natural heritage issue can be a threat for the company image as well can influence various aspects of company activities, if it is not well managed. Therefore, companies should start concern on any cultural and natural heritage since it has significant implication for investor’s decision and perception which can be depicted in its each cost of equity.

Research and Recommendations on Marketing Strategies for Small and Micro Wine Import Companies in China

The Chinese economy’s rapid growth has led to an increased standard of living and a shift in consumer preferences from price to quality, particularly in the wine market. The demand for imported wines has surged, with China becoming one of the world’s largest wine importers since 2016. The younger generation, aged 25 to 45, is particularly interested in wine, focusing on brand culture and the origins of the wine. This demographic shift, along with China’s economic openness and the rise of e-commerce, has created a thriving market for imported wines. Research on the wine industry shows that China’s wine imports have grown significantly since joining the WTO in 2001, with the EU dominating the import sources. The development of wine tourism has also provided new opportunities for the industry. In terms of marketing, it’s suggested that China learn from European wine marketing models, focusing on cultural marketing and differentiation strategies targeting young consumers. Consumer behavior analysis indicates that young consumers prefer wine during social gatherings and are influenced by education and travel experiences, while celebrity endorsements can effectively promote wine products. Thus, some marketing strategy recommendations are as follows: Small and micro wine import companies in China should focus on understanding consumer behavior and preferences, leveraging online and offline sales channels, and promoting wine culture to capitalize on the growing wine market.

PUBLIC DISCLOSURE OF INFORMATION SECURITY BREACH INCIDENTS: SHORT-TERM STOCK MARKET REACTION ON INDIAN LISTED FIRMS

ABSTRACT Data breach incidents are growing by the day and firms struggle to detect, defend, and respond to such breaches. Nowadays, security breaches are considered one of the major concerns for corporate organizations around the world. Hence, it is essential to assess the impact of such breaches on organizations. This article reports stock price reaction due to public disclosure of information security breach (ISB) incidents on publicly traded firms of India. Using the event study methodology on a sample of 120 publicly announced ISB incidents between January 2004 and April 2019 pertaining to 69 publicly listed firms of India, we found that exposure to an ISB incident exacerbates negative stock price reactions based on both one-factor market model and Fama-French three-factor model. On average, breached firms lost 0.55% of their market value within two days post the announcement of ISB incidents. Further, we found some factors that significantly negatively impacted Cumulative Abnormal Return (CAR). Important emerging factors such as type of compromised data, sentiment, subjectivity, and remedial strategy significantly impact CAR. According to our study findings, we suggest that firms should mention remedial measures in terms of apology and/or compensation in the ISB disclosure. Furthermore, the result indicates that investors penalize listed firms for subsequent ISB incidents. Thus, our findings may guide Chief Information Officers (CIOs), information security managers, and IT managers of publicly traded firms to devise various strategies in terms of IT security measures and content of the ISB disclosure.

The Role of Digital Marketing as a Strategy in Improving Wonosobo MSME Product Marketing

T Karangsari Village, Sapuran District, Kaabupaten Wonosobo is one of the villages in Wonosobo Regency that has the potential of a Tourism Village. With the increasing number of tourist visitors, it will increase the potential income for local village communities. Wonosobo Regency typical products have been widely known by the public, but since the occurrence of Covid 19 has caused a lack of tourist visitors visiting tourist sites in Karangsari Village, Sapuran District, Wonosobo Regency. This condition also has an impact on the quiet sales turnover of MSME products, especially in Karangsari Village, Sapuran District, Wonosobo Regency. One of the contributing factors is caused by the marketing model that is still carried out traditionally, so that when the Covid 19 pandemic occurred, it was very difficult for local entrepreneurs to survive running their businesses. Digital marketing is a business strategy that can be used when there are government policies related to social restrictions of the community. The purpose of this community service is to develop products and increase online sales, in order to increase marketing reach. The methods carried out are by: (1) providing training and socialization about the concept of Digital Marketing and its usefulness in business strategies, (2) utilizing digital marketing through social media.

Green subsidies as strategic trade policy tools

In a third-country market model in which two export countries adopt environmental policies (taxes and subsidies), this article analyses how an abatement (“green”) subsidy can become a potential strategic trade policy tool. When governments set the optimal policy considering their local environmental damages, a rich set of equilibria arises. In contrast to the standard result, it is shown that subsidising pollution abatement can 1) emerge as the unique Pareto-efficient Nash equilibrium of the policy game, 2) be the only feasible environmental policy when environmental awareness is low, irrespective of the efficiency of the cleaning technology, and 3) emerge as the unique Pareto-inefficient Nash equilibrium of the policy game at the end of the ecological transition. The article also tackles some dynamic issues that the policy game implies.

"Old Wine in a New Bottle" -- A Study on Consumer Acceptance of "Blind Leftovers Box"

The blind box of leftovers is an innovative catering marketing model. In recent years, this marketing model has been regarded as an effective measure to reduce food waste in Chinese cities and relieve the operating pressure of catering enterprises. This study uses the literature review method to search and sort out the practical experience of some enterprises in the blind leftover box business and reports on the blind leftover box; Then the questionnaire survey method is adopted to explore whether consumers accept the blind leftovers box. The purpose is to investigate the acceptance degree of consumers to the blind leftovers box and the factors affecting the acceptance degree and provide feasible suggestions for catering enterprises to adjust the relevant product marketing strategy in the future. Based on the results of the questionnaire survey, it is found that consumers who accept the blind leftover box generally think that the blind leftover box has the advantages of the novel form, high-cost performance, and food saving. Consumers who reject the blind leftover box are concerned about the reasonable value and food safety of the blind leftover box. The research shows that relevant catering enterprises should strengthen the publicity of blind leftover boxes, and carry out differentiated marketing for people of different ages and different consumption levels.

Marketing Strategy of the Coffee Industry under High Saturation of Globalized Brands-Take Luckin Coffee as an Example

With the arrival of the "Internet +" era, the marketing mode of coffee products is also undergoing constant changes, and the rise of the "new retail" sales model has brought great impact and challenges to the traditional marketing model. This paper will take the typical representative of this business model, Luckin Coffee, as an example, using qualitative research, STP theory, marketing theory, and the case study method to analyze. The article mainly discusses how to utilize and innovate the existing competitive advantages and business model of Luckin coffee, by analyzing and evaluating the strengths, weaknesses, threats, and challenges of Luckin coffee's pricing strategy, product strategy, and promotional strategy to realize precision marketing, introduce the relevant information and some marketing strategies of Starbucks, and borrow from Starbucks' strengths in product marketing, to propose solutions to the the current marketing state of Luckin Coffee: Customer-oriented, while focusing on product differentiation, and through effective "online + offline" publicity to achieve precision marketing and help the coffee industry diversify and develop sustainably under the high saturation of global coffee brands.

Stability of the Epstein–Zin problem

AbstractWe investigate the stability of the Epstein–Zin problem with respect to small distortions in the dynamics of the traded securities. We work in incomplete market model settings, where our parametrization of perturbations allows for joint distortions in returns and volatility of the risky assets and the interest rate. Considering empirically the most relevant specifications of risk aversion and elasticity of intertemporal substitution, we provide a condition that guarantees the convexity of the domain of the underlying problem and results in the existence and uniqueness of a solution to it. Then, we prove the convergence of the optimal consumption streams, the associated wealth processes, the indirect utility processes, and the value functions in the limit when the model perturbations vanish.

Learning about labor markets

We study a general equilibrium model of the labor market in which agents slowly learn about their suitability for jobs. Our model reproduces desirable features of the data, many of which standard models fail to replicate. We explore how, in such an environment, asymmetric information can lead to substantial misallocation. We calibrate our model to US data and quantify the welfare loss arising from misallocation due to informational frictions. The tractability of the model allows us to explore the responsiveness of wages and employment to an aggregate shock. We find that wage rigidity arises endogenously because of protracted learning, and in line with the data, the model is able to generate a larger and more persistent employment response.

The Recent Trend for Marketing Mix in the Context of E-Commerce: A Literature Review

The influence of internet technology on all aspects of human life, and the convenience offered to customers by the e-commerce firms, in terms of flexibility in time and price, have raised the popularity of e-commerce in the world of business. This article aims to review the relevance of the traditional 4P marketing mix model in the era of digitalization, and discuss how it has been and can be modified to apply perfectly to the e-commerce industry. The pandemic also has caused a dramatic rise in online consumption, and the resulting changing trends in customers’ buying behaviour has reiterated the need for reviewing and reshaping the traditional marketing mix concept to adapt to the new business environment. The study elicits the conflicts that arise when the traditional marketing concepts are applied in the e-commerce environment. Starting from the traditional 4 P’s marketing mix, introduced by Jerome McCarthy in the 1960s, the article considers recent studies that outlined improved models for marketing, specifically in context with e-commerce, and identifies a plethora of factors and concepts in relation to e-commerce marketing. The involvement of science and technology makes the e-commerce industry very dynamic in nature. In addition, a crisis like the COVID-19 pandemic has led to drastic changes in the operation of businesses as well as the customers’ purchase behaviour in the last few years. Therefore, it is important to keep constructing new concepts and models that are compatible with the e-commerce industry.

Tendency to Addiction from the Viewpoints of the Youth and Their Parents Based on the Marketing Model (Com-B), in 2020, Yazd

Introduction: The present research was conducted with the aim of explaining the views of teenagers-the adults and their parents regarding the prevention of drug addiction based on the mixed elements of the marketing model (audience needs, access to services, cost, and communication). Methods: This research was conducted based on a qualitative research method using an exploratory method. 14 teenagers-adults and 10 parents, 24 participants were selected through targeted sampling, from the marginal neighborhoods of Yazd in 2019; the neighborhoods included Maryam Abad, Hassan Abad, and Skan. In total, 2 semi-structured in-depth interviews with parents and 3 focused group discussions were conducted with the presence of teenagers and young people in the neighborhood. In this study, the information, including demographic characteristics, and the results of market analysis were obtained with elements of Communication for Behavioral Impact (COMBI) social marketing model; they were investigated using focus group discussions (FGD) and semi-structured face-to-face interviews. Data were analyzed based on the content analysis method. Results: The qualitative study resulted in 63 codes, 26 subcategories, 4 categories, product, location, cost, and promotion according to the COMBI model structures. Product category or behavioral characteristics, having peace of mind, and seeking independence were mentioned by both groups of parents and the youth as the factors of addiction tendency. But, regarding the cost of addiction, while teenagers and the young people considered the social side effects of drug use, such as losing friends, more important, parents were more concerned about the physical side effects of drugs. Location or environmental and social conditions were important for both groups of parents and the youth. Conclusion: The results showed that although both groups of teenagers-the youth and their parents pointed to the social, environmental, and individual factors of addiction, their intended examples were different in many areas. Parents considered the most important factor in the tendency to drugs addiction to be the structure of the audience's need, having peace of mind, compensating for the sense of deficiencies and the need for independence, and the youth suggested the use of virtual space and creating motivation and awareness campaign to prevent addiction as a suitable method. Perceived costs according to the young people were loss of friends, feeling of rejection, loss of self-confidence, and negative view of others towards addiction. One of the reasons for the tendency towards addiction was mentioned by the young people as the location and easy access to drugs, and the parents said that the suitable place for the tendency towards addiction was having a risky and inappropriate family.

Characterizing the typewise top-trading-cycles mechanism for multiple-type housing markets

We consider the generalization of the classical Shapley and Scarf housing market model (Shapley and Scarf, 1974) to so-called multiple-type housing markets (Moulin, 1995). Throughout the paper, we focus on strict preferences. When preferences are separable, the prominent solution for these markets is the typewise top-trading-cycles (tTTC) mechanism.We first show that for lexicographic preferences, a mechanism is unanimous (or onto), individually rational, strategy-proof, and non-bossy if and only if it is the tTTC mechanism. Second, we obtain a corresponding characterization for separable preferences. We obtain additional characterizations when replacing [strategy-proofness and non-bossiness] with self-enforcing group (or pairwise) strategy-proofness. Finally, we show that for strict preferences, there is no mechanism satisfying unanimity, individual rationality, and strategy-proofness.Our characterizations of the tTTC mechanism constitute the first characterizations of an extension of the prominent top-trading-cycles (TTC) mechanism to multiple-type housing markets.

Can dividend announcement predict abnormal returns? Tunisia evidence

Purpose – The purpose of this paper is to observe whether the announcement of dividend distribution can affect the abnormal return on the Tunisian stock exchange. Design/methodology/approach – The sample includes 24 non-financial listed stocks in Tunisia Stock Exchange during the years 2004-2013. Company decides to announce its dividend payout policy to signal the market that the firm is now processing future prospects, which will result in changing its stock prices. Findings – The findings yield qualitatively consistent with the previous research. After controlling for the effect of the Politic Crisis in Tunisia during 2010-2013, the result shows that the stock prices move upward significantly after dividend announcements. Abnormal return (AR) and cumulative abnormal return (CAR) from the market model are statistically significantly revealed. Moreover, most event windows show that the stock return becomes lower when the investor sentiment for dividend is higher. Research limitations/implications – The result is limited to the absence of an important number of firms listed in TSE from this period. Practical implications – Investors in Tunisia show their preference for dividend to self-control, satisfaction and increase their profit. “This could be the catering incentive of the firm to decide to pay dividends”. Originality/value – This document provides evidence of Baker and Wurgler's (2002) proposed a new dividend theory; dividend catering theory, Bulan et al (2004) proposed the timing of dividend initiation, Thanwarat Suwanna (2012) document the impact of dividend announcement on stock returns. Even though the results indicate that Tunisian market react to the announcement of dividend by managers. Moreover, the timing of dividend initiation is affected by the investors’ sentiment, measured by the dividend premium. Tunisian investors react positively to the announcement to distribute dividend from firms especially in abnormal economic situation explained by the Tunisian politic crisis.

Task-oriented machine learning surrogates for tipping points of agent-based models

We present a machine learning framework bridging manifold learning, neural networks, Gaussian processes, and Equation-Free multiscale approach, for the construction of different types of effective reduced order models from detailed agent-based simulators and the systematic multiscale numerical analysis of their emergent dynamics. The specific tasks of interest here include the detection of tipping points, and the uncertainty quantification of rare events near them. Our illustrative examples are an event-driven, stochastic financial market model describing the mimetic behavior of traders, and a compartmental stochastic epidemic model on an Erdös-Rényi network. We contrast the pros and cons of the different types of surrogate models and the effort involved in learning them. Importantly, the proposed framework reveals that, around the tipping points, the emergent dynamics of both benchmark examples can be effectively described by a one-dimensional stochastic differential equation, thus revealing the intrinsic dimensionality of the normal form of the specific type of the tipping point. This allows a significant reduction in the computational cost of the tasks of interest.

Asset pricing and hedging in financial markets with fixed and proportional transaction costs

We establish the asset pricing and hedging principle in a financial market model, which is a specific case of the von Neumann-Gale dynamical system, with both fixed and proportional transaction costs and trading constraints. The main results are hedging criteria stated in terms of consistent valuation systems, generalizing the notion of an equivalent martingale measure.

From Bureau to Micro-Industry

This paper aims to provide a critical and contextual analysis of research conducted together with Martin Smith at the Royal College of Art in the field of ceramic printmaking during 2015–2018, and the subsequent reflections upon the four years since as we have continued to implement the research as a commercial print studio. Over these seven years, I was a senior research associate on the two AHRC-funded research projects: Extending the Potential for the Digitally Printed Ceramic Surface and Improved Laser Printing Equipment for Ceramics, and design director for the spin-out ceramic design project, the print company Smith&Brown. Digital design, combined with electrophotographic laser printing technology, has the potential to open up new market models and extend the visual language of ceramic tableware design but it has hit several barriers causing it to be dismissed by the ceramic industry, weak deposits and poor colour saturation being the most significant of these. Our research has contributed to resolving these issues by developing several technical innovations. These improvements have convinced key players within the industry; however, other barriers to the acceptance/implementation of the technology remain. This has led us to question this context and revise our original aims for industrial uptake, and identify new models more appropriate to the exploration of the market for the uptake of our research findings.

Market supervisor monetary penalties for non‐compliance with informational requirements: Do investors care?

AbstractThis study measures and differentiates investors' responses to market supervisors' monetary penalties for non‐compliance with informational requirements for the capital market in Poland, broken down by the type of distorted information and the form of a breach. An event study was conducted to measure the information content of monetary penalties. We used a market model and tested the significance of abnormal daily returns using both parametric and non‐parametric tests. Cross‐sectional analyses were conducted to measure the determinants of market reactions. We employed two novel classifications of non‐compliance: by the type of distorted information (financial reporting information and other information) and by the form of a breach (failing to provide information and providing erroneous information). We contribute to the literature by finding that investors react negatively to monetary penalties imposed on companies for non‐compliance with financial reporting information requirements, whereas they do not react to such penalties for non‐compliance with other information requirements. We incorporate original variables that explain the magnitude of the market reaction and find that (i) the longer the distance between the breach and penalty imposition, the weaker the market reaction, and (ii) the greater the monetary penalty, the stronger the market reaction. We also find that both forms of breach lead to similar negative market reactions.

Towards Improved Privacy in Digital Marketing: A Unified Approach to User Modeling with Deep Learning on a Data Monetization Platform

This paper introduces an innovative method for safeguarding user privacy in digital marketing campaigns through the application of deep learning techniques on a data monetization platform. This framework empowers users to maintain authority over their personal data while enabling marketers to pinpoint suitable target audiences. The system consists of several key stages Data representation learning in hyperbolic space captures latent user interests across various data sources with hierarchical structures. Subsequently, Generative Adversarial Networks generate synthetic user interests from these embedding. To preserve user privacy, Federated Learning is utilized for decentralized user monetization, Data privacy, modeling training, ensuring data remains undisclosed to marketers. Lastly, a hyperbolic embedding, Federated learning targeting strategy, rooted in recommendation systems, utilizes learned user interests to identify optimal target audiences for digital marketing campaigns. In sum, this approach offers a comprehensive solution for privacy-preserving user modeling in digital marketing.

Digital marketing business models: Key stages, types and trends of development

The main goal of the article is to formalize the key business models of marketing of modern companies and substantiate the key stages, types and trends of development. The relevance and need to pay significant attention to the marketing digital business model when organizing a business is substantiated. Using structural and logical analysis and criticism of scientific research, the essence, advantages and disadvantages are determined, the main blocks, stages and key elements of the structure of business models of modern companies are argued. It has been proven that marketing digital business models serve as a logical and visual plan for organizing all business processes of companies from production, marketing, sales and logistics to building a hierarchy of profitability. The key development trends are substantiated and the most popular business models of business organization in modern conditions are structured on the basis of scientific generalization, structural and logical analysis and mathematical modeling. Practical significance is characterized by the fact that the marketing business models of world-class companies are generalized and structured, taking into account their specifics and characteristics. Practical recommendations and key stages of building a company’s business model and its implementation into reality have been formed to achieve strategic business goals.

Estimating growout production costs of commercial‐scale marine finfish production in southern tier US states

AbstractIncreased interest in marine fish farming in the United States has led to a need for fundamental economic information on production of candidate species for commercialization in various production systems. Funding for the project targeted those species with potential for production in southern tier states in the United States. Sufficient technical data were found to develop comprehensive budget analyses to estimate growout production costs for four scales of production for each of 10 species with potential for production in ponds, 13 in recirculating aquaculture systems (RAS), and five in net pens. The choice of species/production system scenarios was based on evidence of successful production on farms or in research. Estimation of production costs with enterprise budgets can provide useful guidance to identify the types of improved efficiencies that have the greatest effect on economic viability even when commercial farm data are not available. Commercial farm data were used where available, but for most species, data were available only from studies conducted under research conditions. Per‐kg costs of production were lowest for net pen production, followed by ponds, with production costs in RAS two to five times greater than in ponds or net pens. Ponds and net pens generally exhibited greater efficiency of use of capital assets across species than did RAS that resulted in lower percentages of fixed costs and lower annual costs per kg of fish produced. All five species evaluated for net pen production were estimated to be profitable, including redfish, Sciaenops ocellatus (also known as red drum), striped bass, Morone saxatilis, cobia, Rachycentron canadum, red snapper, Lutjanus campechanus, and seriolids (generic budget for almaco jack, Seriola rivoliana, California yellowtail, Seriola lalandi, and greater amberjack, Seriola dumerili), four in ponds (redfish, hybrid drum, ♀Pogonias cromis × ♂Sciaenops ocellatus, black sea bass, Centropristis striata, and cobia), but none of the RAS scenarios showed profitability at average yields (kg/cubic meter) reported in the literature. Comprehensive data on growout production of marine finfish species in the United States is generally lacking, and there is a strong need for production trials conducted under near‐commercial conditions with an endpoint of market‐sized fish. Production trials should be conducted in ponds (≥0.1 ha), net pens, and RAS tanks of a size that simulate commercial production conditions. Adequate production trial databases would provide opportunities to develop economic optimization models that would provide useful guidance for prospective producers. Average yields (kg/cubic meter) in RAS will need to be much greater than currently reported in the research literature for RAS production to be economically sustainable. Net pen production appears to be profitable in the United States, but effective permitting procedures are not in place. Providing research support for the US redfish sector that has developed effective production and marketing models could serve as a foundation for developing additional species and offer opportunities for diversification on marine finfish farms.