The study presented in this paper examines the relative influence of competence, consistency and motivational intention upon the defined task and relationship dimensions of trust in leaders. A sample of 345 part- and full-time employees provided survey responses regarding their perceptions of their direct supervisors. Results indicate that competence and...
Every decision we make, in business, in life in general, is bounded by just two options. Like an on-off switch, we make one or the other - there are no variances to this. Because it's as simple as Yes or No - and so often we get it wrong. You...
This template tracks the forecast and actual sales of products in a product line and calculate variances. The template lists this month's figures, the year to date figures, and the estimated year-end. First type the date into the space provided, then the product descriptions in the left-most column. You may...
Use this template to identify sales trends per product per quarter. It calculates the sales variance, determines if the variance is Favorable F or Unfavorable U, and calculates the percentage change (the percentage increase or decrease in sales over last year's level). The column header works with entries in the...
Faced with stiffening competition, increasingly demanding customers, high labor costs, and, in some markets, slowing growth, service businesses around the world are trying to boost their productivity. But whereas manufacturing businesses can raise it by monitoring and reducing waste and variance in their relatively homogeneous production and distribution processes, service...
Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates. This paper argues that fluctuations in the relative price of nontradable to tradable goods are an important source of RERcpi movements. It uses an approach proposed...
After the Balanced Scorecard is complete most companies tie budgets and compensation plans to it and then establish it as the basis of their monthly management meetings. The conversation centers on understanding the variance of actual results to targeted results for each Measure. By drilling down into the causes and...
When equity prices are determined as the discounted sum of current and expected future dividends, Shiller (1981) and LeRoy and Porter (1981) derived a relationship between the variance of the price of equities, pt, and the variance of the ex post realized discounted sum of current and future dividends: p*t:...
Variance contracts permit the trading of 'Variance risk', i.e. the risk that the squared volatility of stock returns changes randomly over time. The authors discuss why investors might want to trade this type of risk, and why they might prefer a variance contract to standard calls and puts for this...
A variance report calculates the variance in days between your original planned baseline completion date and your actual or estimated completion date. This template helps you create a variance report quickly and easily.
This template is designed to help finance professionals analyze key line items from the income statement profit and loss statement and the balance sheet against annual financial plans to determine overall progress toward your organization's financial goals. The user can enter planned and actual data on this template and see...
This paper examines the tail conditional variance of a risk X defined to be the variability of the risk along its right tail and tail covariance of two risks X1 and X2 defined to explain the linear dependency of the risks along their right tails, and study their potential use...
This paper implements a model-free approach to measure the market price of the variance risk. In this approach, the value of the variance contract is estimated from prices of traded options. The paper finds that when the variance risk is priced, its risk premium is negative and economically very large....
The Conditional Tail Expectation CTE, also called Expected Shortfall or Tail-VaR, is a robust, convenient and coherent measure for quantifying financial risk exposure. This paper looks at some statistical properties of the methods that are commonly used to estimate the CTE and develop a simple formula for the variance of...
This paper explores different specifications of conditional expectations. The most common specification, linear least squares, is contrasted with nonparametric techniques that make no assumptions about the distribution of the data. Nonparametric regression is successful in capturing some nonlinearities in financial data, in particular, asymmetric responses of security returns to the...
Many hedge fund managers use some kind of systematic approach to actively trade the markets. Modelling the returns generated by these dynamic strategies requires allowing for market inefficiencies. In this paper the first two moments, expected value and variance are derived analytically for a general class of trading rules with...
It is relatively simple to compare and choose among alternatives in a deterministic world because there is no uncertainty: what you see is what you get. Uncertain outcomes with their attendant distributions complicate the comparison effort. In the world of investments it is generally agreed that high mean rate of...
This paper proposes and implements a consumption-based pricing kernel stochastic discount factor testing methodology that focuses on the covariance between the pricing kernel and asset squared excess returns. This covariance has an intuitive economic interpretation as a risk-neutral variance risk-premium, i.e. the difference between the risk-neutral return variance and the...
In this paper, to demonstrate the importance of both linking budget rates and hedging and phasing-in hedges, the consequences of hedging foreign currency revenue streams back into USD under three alternative hedging strategies. In each case, the budget rate is based on the rates of the forward contracts executed to...
The article introduces the concept of comprehensive brand presentation CBP, a formalized approach to align manufacturing and communications functions in the business firm. The linchpins of CBP are total quality management TQM principles and integrated marketing communications. The CBP enhances success through synergistic execution of the manufacturing and marketing processes....
