A Theological Context of Work from the Catholic Social Encyclical Tradition

This article draws upon 100 years of writings which are referred to as the Catholic Social Tradition (CST). Using this tradition as a guide, the nature of work is explored along with the principles and virtues which vitalize the deepest dimension of work — how it affects the dignity of the human person. It develops five operational ethical principles which can be applied to questions of workplace ethics. Organizational policies and programs that seem consistent with CST are also discussed. Michael Naughton is Assistant Professor of Management and Theology at the University of St. Thomas (MN). Dr. Naughton\u27s major research interest involves examining the influence and application of religious values on employees and the workplace environment. Gene R. Laczniak is Professor of Business in the Department of Marketing at Marquette University. His primary research interests focus on the social influence of business activities on society as well as marketing strategy

Poverty, Prosperity and the Challenges of the Good Company

The articles in this volume originate from papers delivered at the 9th International Conference on Catholic Social Thought and Management Education at De La Salle and Ateneo Universities in Manila, Philippines (February 26–28, 2015). The theme of the conference was “Poverty, Prosperity and the Purpose of Business” within the Catholic social tradition. In attendance were approximately 300 participants representing 22 countries from 80 Catholic colleges and universities. They came from disciplines in management, philosophy, finance, accounting, theology, marketing, economics, and others. There were also leaders from business, many of whom were from the Philippines, who brought their experiences to bear on the conversations. Along with this diversity of education and experience were people of different faith traditions whose moral and spiritual commitments run deep on the importance of mission and identity of Catholic universitie

Is Idiosyncratic Volatility Priced? Evidence from the Shanghai Stock Exchange

This paper employs the mimicking portfolio approach of Fama and French (1996) and asks whether idiosyncratic volatility is priced. This paper also provides evidence on whether returns on small stocks are higher in January than in remaining months. Our findings reveal that (a) idiosyncratic volatility is priced; and, (b) the multifactor model provides a better description of average returns than the traditional CAPM. We also find that the absolute pricing errors of the CAPM are large when compared with the multifactor model. We argue that firm size and idiosyncratic volatility may serve as proxies for systematic risk. We also dismiss the claim that returns on small stocks are on average higher in January than in remaining months. In summary, investors interested in taking additional risks should invest in small and low idiosyncratic volatility firms in addition to the market portfolio. This is because our findings indicate that investors can generate substantial returns by investing in strategies unrelated to market movements.Idiosyncratic Volatility, Firm Size, Asset Pricing, China.

Equity Premium: - Does it exist? Evidence from Germany and United Kingdom

Malkiel and Xu (1997) state that idiosyncratic volatility is highly correlated with size and that it plays a powerful role in explaining expected returns. In this paper we ask (a) whether idiosyncratic volatility is useful in explaining the variation in expected returns; and, (b) whether our findings can be explained by the turn of the year effect. We find that (a) our three-factor model provides a better description of expected returns than the CAPM. That is, we find that firm size and idiosyncratic volatility are related to security returns. In addition, we also find that our findings are robust throughout the sample period. We show that the CAPM beta alone is not sufficient to explain the variation in stock returns.Idiosyncratic Volatility, Size Effect, CAPM, Risk Premia

Asset Pricing in China: Evidence from the Shanghai Stock Exchange

Capital market theory is concerned with the equilibrium relationship between risk and expected return on financial claims. Within this framework, this paper seeks to extend the mounting evidence against the view that the beta coefficient of the Capital Asset Pricing Model is the sole measure of risk. In this paper we test the multifactor approach to asset pricing in one of the most challenging international markets, the Shanghai Stock Exchange, China. Firstly, we seek to determine whether size and value premia exist in China. Secondly, we address the challenge that size and value premia are largely determined by seasonal factors (such as the January and/or Chinese New Year effect). Our findings suggest that mean-variance efficient investors in China can select some combination of small and low book-to-market equity firms in addition to the market portfolio to generate superior risk-adjusted returns. Moreover, we find no evidence to support the view that seasonal effects explain the findings of the multifactor model. In summary, we suggest the market factor alone is not sufficient to describe the cross-section of average stock returns in China.Asset Pricing; Seasonal Effects; China.

Eliminating Recursion from Monadic Datalog Programs on Trees

We study the problem of eliminating recursion from monadic datalog programs on trees with an infinite set of labels. We show that the boundedness problem, i.e., determining whether a datalog program is equivalent to some nonrecursive one is undecidable but the decidability is regained if the descendant relation is disallowed. Under similar restrictions we obtain decidability of the problem of equivalence to a given nonrecursive program. We investigate the connection between these two problems in more detail

Pricing of Equities in China: Evidence from the Shanghai Stock Exchange

In this paper we compare the performance of the traditional CAPM with the multifactor model of Fama and French (1996) for equities listed in the Shanghai Stock Exchange. We also investigate the explanatory power of idiosyncratic volatility and respond to the claim that multifactor model findings can be explained by the turn of the year effect. Our results show that firm size, book to market equity and idiosyncratic volatility are priced risk factors in addition to the theoretically well specified market factor. As far as the turn of the year effect is concerned we reject the claim that the findings are driven by seasonal factors. Our findings have implications for both academic researchers and practitioners. This is because we demonstrate that by following the investment strategies investigated in this paper superior returns could be generated – returns in addition to those offered by the market. Of course this is only applicable to those investors who are willing to take additional risks in order to generate additional returns. In summary, our results show that a broader asset pricing model such as the one investigated in this paper does a much better job than the single index CAPM.Asset Pricing, CAPM, China, Small Firm Effect, Turn of the Year Effect.

Complex Structure of Dynamic Stall on Wind Turbine Airfoils

Fluid dynamics video demonstrating the evolution of dynamic stall on a wind turbine blade.Comment: 2 pages with 2 attached movie