Does Religiosity Affect Liquidity in Financial Markets?

A growing body of research shows that religious culture can influence both macroeconomic and firm-specific outcomes. In this study, we examine how religiosity influences the liquidity of cross-listed stocks. These tests are important given the literature that shows that firms choose (in part) to cross-list their securities in order to access greater liquidity, which can reduce firms’ costs of capital. Using an instrumental variable approach, results show that religiosity directly influences the liquidity of cross-listed securities. This link might best be explained by a growing body of research that suggests that religiosity is directly associated with the ethical behavior of firm managers. To the extent that this association exists, the liquidity provider’s cost of holding a risky inventory of shares might be lower, thus resulting in an overall improvement in liquidity

Coordination in Service Value Networks - A Mechanism Design Approach

The fundamental paradigm shift from traditional value chains to agile service value networks (SVN) implies new economic and organizational challenges. This work provides an auction-based coordination mechanism that enables the allocation and pricing of service compositions in SVNs. The mechanism is multidimensional incentive compatible and implements an ex-post service level enforcement. Further extensions of the mechanism are evaluated following analytical and numerical research methods

PP-waves on Superbrane Backgrounds

In this paper we discuss a method of generating supersymmetric solutions of the Einstein equations. The method involves the embedding of one supersymmetric spacetime into another. We present two examples with constituent spacetimes which support "charges", one of which was known previously and the other of which is new. Both examples have PP-waves as one of the embedding constituents.Comment: 6 pages no figure

Competition of Service Marketplaces: Designing Growth in Service Networks

The cloud computing paradigm gives rise to Web service marketplaces where complex services areprovided by several modular vendors. Recently more and more intermediaries are pushing onto themarket, thereby driving competition. Offering innovative business models which are capable ofattracting service providers and consumers is a reasonable strategy to beat competitors and to takeadvantage of network effects. We develop a mechanism that introduces a novel way of distributingrevenues among service providers – the power ratio. Its underlying presumption is not only tocompensate service providers who actually contribute to a complex service offered at a time, but alsoto pay out partners who are on standby – i.e. vendors that support the network’s variety and stability,but actually do not contribute to the complex service delivered. We show that a payment function thatis based upon the power ratio is a promising approach to draw in service providers as it outperformsa payment function that rewards vendors merely based on their actual allocation in terms of expectedpayoffs for different types of service vendors

The Introduction of Bitcoin Futures: An Examination of Volatility and Potential Spillover Effects

Theory in Stein (1987) suggests that introducing derivative contracts, such as futures, can destabilize underlying asset prices if the contracts attract enough speculative traders. This paper examines how the introduction of Bitcoin futures influences the underlying Bitcoin market. Consistent with Stein (1987), we find that that Bitcoin\u27s volatility increases significantly during the post-introduction period. Perhaps more importantly, however, we observe significant spillover effects into related markets. For instance, in other cryptocurrencies, the increase in volatility in these markets is greater than the post-introduction increase in Bitcoin

Coordinating service composition

The fundamental paradigm shift from traditional value chains to agile service value networks implies new economic and organizational challenges. As coordination mechanisms, auctions have proven to perform quite well in situations where intangible and heterogeneous goods are traded. Nevertheless traditional approaches in the area of multiattribute combinatorial auctions are not quite suitable to enable the trade of composite services. A flawless service execution and therefore the requester\u27s valuation highly depends on the accurate sequence of the functional parts of the composition, meaning that in contrary to service bundles, composite services only generate value through a valid order of their components. We present an abstract model as a formalization of a service value network. The model comprehends a graph-based mechanism design to allocate multiattribute service offers within the network, to impose penalties for non-performance and to determine prices for complex services. The mechanism and the bidding language support various types of QoS attributes and their (semantic) aggregation. We analytically show that this variant is incentive compatible with respect to all dimensions of the service offer (quality and price)

The Information Content of Option Ratios

A broad stream of research shows that information flows into underlying stock prices through the options market. For instance, prior research shows that both the Put–Call Ratio (P/C) and the Option-to-Stock Volume Ratio (O/S) predict negative future stock returns. In this paper, we compare the level of information contained in these two commonly used option volume ratios. First, we find that P/C ratios contain more predictability about future stock returns at the daily level than O/S ratios. Second, in contrast to our first set of results, O/S ratios contain more predictability about future returns at the weekly and monthly levels than P/C ratios. In fact, our tests show that while P/C ratios contain predictability about future daily returns and, to some extent, future weekly returns, the return predictability in P/C ratios is fleeting. O/S ratios, on the other hand, significantly predict negative returns at all levels: daily, weekly, and monthly. While Pan and Poteshman (2006) show that signed P/C ratios, which require proprietary data, have predictive power, we find that unsigned P/C ratios, which do not require proprietary data, also have predictive power

INCENTIVES IN SERVICE VALUE NETWORKS – ON TRUTHFULNESS, SUSTAINABILITY, AND INTEROPERABILITY

The concurrence of technical and behavioral trends – such as lightweight approaches for service composition and a rising demand for customized services – fosters the emergence of a novel organizational paradigm: Service Value Networks (SVN). Distributed and highly-specialized service providers contribute to an overall value proposition. SVNs provide means for the ad-hoc composition of services that satisfies individual customers\u27 needs. However, the distributed nature of these environments and the opportunistic behavior of participants require a purposeful design of incentives. Our contribution is threefold: We (i) provide an auction mechanism – the Complex Service Auction – to coordination value creation in SVNs which is incentive compatible in dominant strategies (truthful). To restore budget balance – the prerequisite for a mechanism\u27s sustainability – and to implement incentives that increase a network\u27s degree of interoperability, we (ii) present the Interoperability Transfer Function (ITF). Applying an agent-based simulation method, we (iii) numerically show that this payment scheme limits strategic behavior of service providers and strengthens interoperability endeavors compared to a benchmark transfer function

Comovement in the Cryptocurrency Market

This study examines the comovement between 17 of the most active cryptocurrencies. We are unable to statistically reject the presence of perfect comovement between Bitcoin and six of the 16 non-Bitcoin cryptocurrencies. Consistent with the friction-based explanation for the presence of comovement, once the CBOE introduced futures contracts on Bitcoin, we find that all 16 cryptocurrencies comove with Bitcoin. These results suggest that introducing futures contracts improves the informational environment of the entire cryptocurrency market, which helps explain the unusual comovement in the cryptocurrency market