Summary of a research paper Essay Example | Topics and Well Written Essays - 750 words

Summary of a research paper - Essay Example It would be therefore be interesting to review findings of such study which presents contradicting results and concludes from the perspective of investors that there are substantial variances in annualized stock returns in the long run. The journal article refers to previous studies including Siegel (2008) and Campbell and Viceira (2002, 2005) that have concluded that both unconditional and conditional variances in stock returns are greater in the shorter time frame as compared to the longer investment horizon. The study by Pastor & Stambaugh is carried out from investors’ perspective and suggests that stock returns have greater volatility in the long run mainly due to two conditions which investors face. These include inability of investors to know the drivers of conditional expected return from stocks and also investors are of the view that even observable factors influencing stock returns forecasts do not sufficiently predict changes in conditional expected return. ... The study adopted vector autoregression (VAR) model with assumptions that predictors are imperfect, which is a different approach as compared to previous studies by Stambaugh (1999), Barberis (2000), Hoevenaars et al. (2007). The study reflects that on the basis of imperfect predictors there are significant direct and indirect values in the long run. The study considered five components of variances observed in the long run including the uncertainty pertaining to independent and identical distribution of returns over the term of analysis i.e. true variance, mean reversion, uncertainty of future and current expected stock return, and estimation risk. The study reveals that there is a positive relationship between long term variances and these components of variances except mean reversion. This implies that higher values of these components result in higher volatility of stock returns Mean reversion, which is an assumption that current negative shocks in the stock return are offset by positive return shocks in the future, has a negative impact on variances. This does apply in the long run but its relevance is offset by other four components of long term variance. It is suggested in the research article that investors are not able to observe the variances and instead they rely on historical data of returns to predict future returns. Therefore, in the presence of imperfect predictors of returns there is a high degree of predictability which leads to greater volatility in the long term stock returns. The analysis of data in the report is divided into nine sections. Expressions for five components of long term variations are developed using VAR and then using a predictive system conditional expected returns

Human Resource 2 Coursework Example | Topics and Well Written Essays - 1500 words

Human Resource 2 - Coursework Example Therefore, an organizational structure is aimed at coordinating, regulating, and reducing uncertainty in the employee’s behavior (Ratna 5-9). Nevertheless, the organization structure can be classified in to two; the first is the centralized organization structure whereby authority reigns in the top management and orders given have to be obeyed. This structure mainly applies in the military. The second one is the decentralized organization structure, which gives room for decisions to be made at lower hierarchy levels like in the case of a fast food franchise whereby each restaurant in the chain makes its own decisions, thus responsible for its actions. Fast food companies can be analyzed as Quick Service Restaurant where food is prepared and served very quickly. According to the independent news, Britain’s appetite for fast food was increasing, hence, there is need to introduce more fast food restaurants. The Eagles’ Fast Food Company seeks to operate in the Unite d Kingdom in some years in the future. Due to high competition in fast food business in the United Kingdom, the company should be in a position to achieve a competitive advantage. Therefore, the decentralized organizational structure is the most suitable one mainly because a fast food company yields too many restaurants in different parts of a country for efficiency sakes. Hence, each restaurant must have a subunit manager, such that the authority granted to these managers acts as a way of training them for incase of senior positions in the future. The other advantage is that employees feel empowered, hence yielding satisfaction in their work and eventually, they are motivated to even work harder. In addition, the senior management can have time to focus on the pressing and demanding issues at hand, since the unit mangers are taking care of subunits’ issues. Unlike the centralized organizational structure, which may hinder operational efficiency, the decentralized authority i nvolves employees in decision making thus enhances efficiency in the company. 5.2 Task 2 Identify an organization in the Public Sector. Through your own research, present an analysis of the organization’s approach to employee relations. An employee relation consists of the task involved in maintaining employer-employee relationship, which yields satisfaction, motivation, and morale. Hence, employee relations aims at preventing and solving issues that arise at the place of work involving employees, and could affect their jobs. British council is a public sector organization that enhances awareness of the United Kingdom’s democratic values and processes via working together with other countries to enhance good governance and human rights. However, according to the British council policy, the organization insists that employment relationships must be governed by equality and opportunity. Their policy encourages communication between the employees and management, and furth er states that it is only through communication that the management is aware of the employee’s needs, expectations, and grievances. Hence, the policy acknowledges that spirit in which the managers and employees interact with each other determines the relations of both parties in the place of work. In addition, the company encourages the training of