International Portfolio Holdings and Swiss Franc Asset Returns

Portfolio Choice, Asset Returns, Switzerland

Why are Returns on Swiss Franc Asset so Low?

As is well known, the uncovered interest rate parity fails in the short run but usually holds in the long run. This paper analyses the long and short run interest rate parity of 10 mayor OECD currencies and finds that there is a long run failure of the uncovered interest rate parity condition for the Swiss Franc. After correcting for exchange rate changes, mean returns on Swiss assets have been significantly lower than in other currencies, an anomaly not found in any other major currency. The long run return differential has been stable over the last 20 years, transitory structural breaks are only found in times of currency turmoil. We suggest that the return anomaly may be due to an insurance premium against very rare catastrophic events, such as a major war. Supporting evidence for this hypothesis comes from two empirical findings: First, we show that the return differential is negatively affected by large unexpected geo-political events. Second we examine historical data on interest rates differentials and show that the abnormally low level of Swiss returns arises after the first world war only.

The Demise of the Swiss Interest Rate Puzzle

In this paper we analyzed the violations of UIP for the Swiss Franc against the Dollar, the Euro, the Yen, the NEWLINE Pound and the Canadian Dollar using recent data up to fall 2008. This exercise provides the following main NEWLINE results : first the Swiss interest rate puzzle disappeared, i.e. mean returns on Swiss Franc assets are no longer NEWLINE systematically and significantly lower (as in the 1980 – 1998 sample) when compared jointly with other NEWLINE major currencies in the 1999 to 2008 period. Second and in contrast to earlier evidence we failed to find NEWLINE evidence that geopolitical crises lead to an appreciation of the Swiss Franc in the last ten years. Third even NEWLINE the short run validity of UIP cannot be rejected for the Swiss Franc against the five currencies for the 1999 – NEWLINE 2008 sample. Unfortunately our attempt to locate the time of change and the currencies involved by the NEWLINE application of tests for structural breaks with unknown break point did not lead to clear cut conclusion for the NEWLINE Euro and the Dollar, the two most important foreign currencies from a Swiss perspective

Why are Returns on Swiss Franc Asset so Low?

As is well known, the uncovered interest rate parity fails in the short run but usually holds in the long run. This paper analyses the long and short run interest rate parity of 10 mayor OECD currencies and finds that there is a long run failure of the uncovered interest rate parity condition for the Swiss Franc. After correcting for exchange rate changes, mean returns on Swiss assets have been significantly lower than in other currencies, an anomaly not found in any other major currency. The long run return differential has been stable over the last 20 years, transitory structural breaks are only found in times of currency turmoil. We suggest that the return anomaly may be due to an insurance premium against very rare catastrophic events, such as a major war. Supporting evidence for this hypothesis comes from two empirical findings: First, we show that the return differential is negatively affected by large unexpected geo-political events. Second we examine historical data on interest rates differentials and show that the abnormally low level of Swiss returns arises after the first world war only

Influence of culture on strategic human resource management (SHRM) practices in multinational companies (MNC) in Kenya: a critical literature review

Presented By proffesor Peter K’ObonyoBeatrice DimbaExtant theories of strategic human resource management (SHRM) practices and cultures have generally adopted on the one hand the assumption that organizations develop a culture of their own that is distinct from the national and industry contexts in which the organization is embedded, thus ignoring the potential impact of external environmental factors on organizational culture. On the other hand, some researchers and scholars have questioned the validity and reliability of national culture-SHRM practices research. The current paper explores the employee cultural values in the Kenyan multinational companies (MNCs) and the influence of culture on SHRM practices. Hofstede’s cultural dimensions of collectivism, power distance, uncertainty avoidance, and femininity are applied. These value dimensions reflect human thinking, and feelings of people, which pose basic problems that any society has to cope with but for which solutions differ.Extant theories of strategic human resource management (SHRM) practices and cultures have generally adopted on the one hand the assumption that organizations develop a culture of their own that is distinct from the national and industry contexts in which the organization is embedded, thus ignoring the potential impact of external environmental factors on organizational culture. On the other hand, some researchers and scholars have questioned the validity and reliability of national culture-SHRM practices research. The current paper explores the employee cultural values in the Kenyan multinational companies (MNCs) and the influence of culture on SHRM practices. Hofstede’s cultural dimensions of collectivism, power distance, uncertainty avoidance, and femininity are applied. These value dimensions reflect human thinking, and feelings of people, which pose basic problems that any society has to cope with but for which solutions differ

Sclerotinia cirsii-spinosissimi, a new species from the Alps

Beatrice Senn-Irlet, Martina Peter (2016): Sclerotinia cirsii-spinosissimi, a new species from the Alps. Ascomycete.org 8 (5): 235-240, DOI: 10.5281/zenodo.104018

Wirkung von Hydropriming in Soja auf Keimrate und Auflaufgeschwindigkeit

Die Sojaanbaufläche in Deutschland nimmt stetig zu. In 2015 wurde in Deutschland auf 17.000 ha Soja angebaut, die Anbauschwerpunkte liegen in Bayern und Baden-Württemberg. Züchterisch wird Soja aktuell bearbeitet, um den Anbau auch in ungünstigeren Lagen (kältere Lagen mit kürzerer Vegetationszeit) zu ermöglichen. Daneben gibt es aber auch Verfahren wie das Hydropriming, die ebenfalls ihren Beitrag zur Verkürzung der Vegetationszeit leisten. In der vorliegenden Untersuchung wurden die Wirkung von Hydropriming auf die Keimrate und die Auflaufgeschwindigkeit von fünf verschiedenen Sojasorten in einem Gefäßversuch verfolgt. Für das Hydropriming wurden die Sojabohnen für 4, 8, 12 bzw. 16 Stunden in Gefäße mit destilliertem Wasser gegeben und anschließend 25 Stunden schonend getrocknet. Für den Keimversuch wurden Gefäße mit einem Gemisch aus Sand und Feldboden gefüllt und jeweils drei vorbehandelte Sojabohnen zugegeben. Die Versuche wurden in Klimakammern mit unterschiedlichen Temperaturen (12, 15 und 18°C) durchgeführt, das Wachstum wurde täglich bonitiert. Die Auflaufgeschwindigkeit konnte unter kühlen Bedingungen (12°C) durch das Hydropriming verkürzt werden, was aber zum Teil auch mit einer verringerten Keimfähigkeit verbunden war. Es zeigten sich deutliche Sortenunterschiede. Die Ergebnisse geben wertvolle erste Hinweise zur Wirkung des Hydropriming unter kühlen Bedingungen. In weiteren Versuchen müssen die Ergebnisse verifiziert werden,um eine praktische Empfehlung für das Hydropriming in Soja geben zu können

Hydropriming in Soja: Auswirkungen auf Wasseraufnahme, Größenzunahme, Keimfähigkeit und Keimdauer

In Labor und Gefäßversuchen wurde Hydropriming an verschiedenen Soja-Sorten getestet. Die Wasseraufnahme und die Größenzunahme wurde untersucht und die Keimfähigkeit und Keimdauer wurde in Gefäßversuchen getestet. Es zeigt sich ein Unterschied der 00- und 000- Sorten bei der Wasseraufnahme. Das Priming zeigte bei niedrigen Keimtemperaturen (12°C, im Vergleich zu 15 und 18°C) und besonders bei Merlin eine Verbesserung der Keimdauer