Topic Review
Business Model of Sustainable Robo-Advisors
The given research paper examines the characteristics of German private investors regarding the probability of using robo-advisory-services. The used data set was gathered for this purpose (N = 305) to address the research question by using a logistic regression approach. The presented logit regression model results indicate that the awareness of sustainable aspects make a significant difference in the probability of using a sustainable robo-service. Additionally, our findings show that being male and cost-aware are positively associated with the use of a sustainable robo-advisor. Furthermore, the probability of use is 1.53 times higher among young and experienced investors. The findings in this paper provide relevant research findings for banks, asset managers, FinTechs, policy makers and financial practitioners to increase the adoption rate of robo-advice by introducing a sustainable offering.
  • 590
  • 29 Nov 2021
Topic Review
Energy Sector and the Global Economy
The future of the energy sector is an urgent topic nowadays, as the survival of humanity and each of researchers depends on it. This sector is part of a larger whole, i.e., of the national or global economy, and it determines its growth. This became particularly obvious recently as it has become necessary to increase the share of renewable energy in the total energy balance to stop global warming, which is the source of climate change.
  • 590
  • 07 Dec 2022
Topic Review
Machine Learning in Forecasting Motor Insurance Claims
Accurate forecasting of insurance claims is of the utmost importance for insurance activity as the evolution of claims determines cash outflows and the pricing, and thus the profitability, of the underlying insurance coverage. These are used as inputs when the insurance company drafts its business plan and determines its risk appetite, and the respective solvency capital required (by the regulators) to absorb the assumed risks. The conventional claim forecasting methods attempt to fit (each of) the claims frequency and severity with a known probability distribution function and use it to project future claims.
  • 589
  • 16 Oct 2023
Topic Review Peer Reviewed
Revenue Sharing in Professional Sports Leagues
This entry provides a review of economic models of professional sports leagues with and without revenue sharing. These include models that assume profit-maximizing and win-maximizing (sportsmen) club owners. Both approaches predict that revenue sharing will reduce the demand for player talent, depress player salaries, and transfer revenue from large-market to small-market clubs, but they differ on league parity effects. Empirical work has been sparse due to financial data limitations and has not yielded definitive results on the parity issue. Despite the growing awareness of sports economics in the sports industry, the lack of consensus from theoretical models has resulted in sports leagues searching for an optimal revenue sharing policy. The difficulty in providing consistent policy prescriptions in models that incorporate revenue sharing, salary caps, and other league policies has made economic modeling of sports leagues very difficult and complex. While revenue sharing remains an interesting theoretical modeling issue, it has not bridged the gap to real-world league policies.
  • 581
  • 30 Jul 2024
Topic Review
Fund Manager Skill and Mutual Fund Performance
A mutual fund is a common instrument for households and corporations to invest in the financial markets through diversified portfolios of securities. Investing in managed mutual funds involves relying on a fund manager’s knowledge, expertise, and investment strategy to beat the fund’s benchmark. 
  • 575
  • 17 Nov 2023
Topic Review
Link of Environmental, Social, Governance and Firm Performance
ESG performance has a positive relationship with profit in large firms but not in SME firms. Large firms are motivated by stakeholder and other needs, while SME firms do not have the same priorities. Similarly, small and nascent firms may not have the resources of large firms, suggesting that competitive factors related to downstream networking will markedly differ for both groups of firms.
  • 554
  • 29 Jun 2022
Topic Review
Earthquake Catastrophe Bond Pricing
The potential for economic losses due to earthquakes keeps increasing due to the development of the socioeconomic system and urbanization. The disaster management funds are insufficient to cover the losses suffered. Therefore, there is a need for an alternative funding mechanism linked to the financial market, such as catastrophe bonds.
  • 553
  • 28 Nov 2022
Topic Review
Bank Capital Structure and Its Determinants
Financial institutions, particularly banks, have long grappled with the dilemma of structuring their capital optimally. This process, commonly referred to as capital structure decision-making, is of paramount importance, especially within the financial services sector, where strict regulations are imposed by reserve and central banks in alignment with global Basel guidelines. 
  • 551
  • 10 Nov 2023
Topic Review
Environmental, Social and Governance
The world is constantly changing, and with an evolving global environmental crisis, there is a growing trend of Corporate Social Responsibility, and Environmental, Social, and Governance (ESG) disclosure initiatives. The final report on the new E.U. taxonomy for sustainable activities was released in 2020, making ESG disclosure more relevant. Environmental, Social, and Governance refers to non-financial information about how a firm deals with issues on this matter, and its importance for firm valuation is growing. Even though ESG information might lack standardisation, scholars argue that it can help adapt to environmental changes and even be a part of a company’s competitive strategy.
  • 550
  • 15 Aug 2022
Topic Review
Unbiased Expectation Theory
Unbiased expectation theory (UET), which posits that long-term interest rates are determined by the market’s expectations of future short-term interest rates, is a fundamental concept in the field of fixed-income securities. According to the expectation hypothesis, forward interest rates should be unbiased estimates of expected future spot interest rates.
  • 538
  • 09 Jan 2024
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