Ruin probability in the Cramér–Lundberg model with risky investments

AbstractWe consider the Cramér–Lundberg model with investments in an asset with large volatility, where the premium rate is a bounded nonnegative random function ct and the price of the invested risk asset follows a geometric Brownian motion with drift a and volatility σ>0. It is proved by Pergamenshchikov and Zeitouny that the probability of ruin, ψ(u), is equal to 1, for any initial endowment u≥0, if ρ≔2a/σ2≤1 and the distribution of claim size has an unbounded support. In this paper, we prove that ψ(u)=1 if ρ≤1 without any assumption on the positive claim size

Understanding the Success of Software-as-a-Service (SaaS) - The Perspective of Post-Adoption Use

Understanding the antecedents and consequences of trust in an online and on-demand outsourcing context is important. This study explores the effects of service quality on trust, which in turn affects a client firm’s post-adoption use in SaaS. A research model was developed based on the dedication-constraint framework of social exchange theory to measure service quality, trust, and SaaS post-adoption as multiple dimensions. We empirically examined the model by collecting data from 246 firms (key informants) that have adopted SaaS. Results show that while all three dimensions of service quality (client orientation quality, client response quality, environment quality) positively affect trust in service quality, client orientation and environment quality have positively influence on trust in provider. Both types of trust positively influence post-adoption intention. Finally, we discuss the theoretical and practical implications