Financial Risk Management

Thought Speed Induces Risk Taking

by Jesse Chandler

Financial risk models built on sand

by Yasmine Hayek

Capital budgeting under uncertainty

by Raj Aggarwal

Assessing the impact of prompt corrective action on bank capital and risk

by Raj Aggarwal

Stochastic programming models for asset liability management

by Stavros Zenios

A COMPARATIVE STUDY OF DOLLAR COST AVERAGING VS. VALUE AVERAGING

by Pawel Stefan Benedykcinski

AUTHOR: PAWEL STEFAN BENEDYKCINSKI and ADVISOR: St. Olaf College ECONOMICS PROF. RICHARD GOEDDE

A COMPARATIVE STUDY OF DOLLAR COST AVERAGING VS. VALUE AVERAGING
Pawel S. Benedykcinski and Prof. Rick Goedde... more A COMPARATIVE STUDY OF DOLLAR COST AVERAGING VS. VALUE AVERAGING
Pawel S. Benedykcinski and Prof. Rick Goedde (Advisor)
Economics Department
St. Olaf College
Northfield, MN

My research compares three investment techniques, fixed and variable dollar cost averaging and value averaging to determine if any of the methods yield superior investment returns in the long run. Mutual funds, stocks, and exchange-traded funds were used to test the methods. Value averaging is a formula-based investment technique using a mathematical formula to guide the investment of money into a portfolio over time. With this method investors contribute to their portfolios in such a way that the portfolio balance increases by a set amount, regardless of market fluctuations. Dollar cost averaging invests equal amounts regularly and periodically over specific time periods in a particular investment or portfolio. By doing so more shares are purchased when prices are low, and fewer shares are purchased when prices are high.

After testing many mutual funds, ETFs, and individual stocks, I concluded that Value Averaging yields better Internal Rates of Return than fixed and variable Dollar Cost Averaging. The results also indicate that the three methods provide superior investment returns over extended investment time periods with little increase in risk, even if prices are volatile. One important difference between these three formula investment techniques is that value averaging requires larger sums of money to be invested at regular time intervals than fixed or variable dollar cost averaging do.

Does knowledge sharing and withholding of information in organizational committees affect quality of group decision-making?

by Caroline Kamau

Kamau, C. & Harorimana, D. (2008)

In today’s knowledge economy, there is an emphasis on group performance, such as in organizations’ committees, yet... more In today’s knowledge economy, there is an emphasis on group performance, such as in organizations’ committees, yet this performance is prone to productivity deficits. Like many other groups, organizational committees are prone to irrational decision-making in the form of groupthink and group polarization. We review evidence that groupthink involves avoidance of contradictory information, biased information sharing, self-censorship, reducing information on the outgroup and poor information pooling. For example, committee members’ conformity to the standards and expectations of an organization can lead them to withhold information that contradicts the organization’s “traditional” viewpoint. In other instances of groupthink, committee members may withhold information from their seniors in order to shield them from opposing views. Committee members undergoing groupthink may also display bias in their information search, such that they seek only that information which supports the committee’s prevailing opinion. We also review evidence showing that highly cohesive groups, those isolated from outside influence, and those with forthright leadership, are most at risk of groupthink. Improving the structure of a committee and having a leadership style that is process-directive, rather than outcome-directive, can reduce groupthink. We also review evidence on group polarization, which involves a shift by a group to an extremely risky or an extremely conservative viewpoint as a result of members influencing each other. We also discuss the impact of novel information on group polarization. We provide an analysis of the impact of faulty decision-making on the downfall of the bank Northern Rock. We consider the possible lack of objectivity in elements of the bank’s decision-making. The fact that Northern Rock did not receive a sufficient amount of outside regulation may have exacerbated groupthink. We discuss the likely role of risky shift in the bank’s attitude to risk and also consider the possible impact of forthright leadership on groupthink within Northern Rock. Groupthink and group polarization pose a danger to organizations that are required to continuously create, update and utilise knowledge in their decision-making, and to implement change in order to compete in shifting markets.

The Brain Drain: Implications for Regional Economic Integration in the Expanding European Union.

by Matthew Jelavic

Jelavic, M. (2012). The brain drain: Implications for regional economic integration in the expanding European Union. In B. Chapalet, & M. Le Berre (Eds.), Producing New Knowledge on Innovation Management. Presses Universitaires de Grenoble, 99 – 111.

This paper provides a review and conceptual analysis of issues surrounding regional economic integration and the... more This paper provides a review and conceptual analysis of issues surrounding regional economic integration and the potential for inter-country brain drain within the expanding European Union (EU). As the EU expands eastward, it absorbs millions of highly skilled knowledge workers and opens opportunities for western European organisations to capitalise on this workforce. The migration of these skilled workers is a macro-exercise in eastern European knowledge management, and could have far-reaching implications at the regional, industry and organisational levels. This paper explores the context and implications of knowledge worker movement across fading borders.

Cultural perspectives on knowledge management in central and eastern Europe: The SECI model of knowledge conversion and ‘ba’

by Matthew Jelavic

Jelavic, M., & Ogilvie, K. (2010). Cultural perspectives on knowledge management in central and eastern Europe: The SECI model of knowledge conversion and ‘ba’. Journal of Information & Knowledge Management, 9(2), 161 – 169.

This research discusses the SECI Model of Knowledge Conversion as it relates to the 10 Central and Eastern European... more This research discusses the SECI Model of Knowledge Conversion as it relates to the 10 Central and Eastern European Countries (CEECs) that are now part of the European Union (EU). The socio-economic conversion from socialism to capitalism of these societies is unique in historical precedence, whereby utilising the contextual models in knowledge conversion are applicable for understanding the implications of such a phenomenon. The results indicate that there is a unique set of variables that need to be considered within this context and for future similar situations.

Keywords: SECI; knowledge conversion; national culture; Ba; central and eastern Europe.

Knowledge Management Views in Eastern and Western Cultures: An Integrative Analysis

by Matthew Jelavic

Jelavic, M., & Ogilvie, K. (2010). Knowledge management views in eastern and western cultures: An integrative analysis. Journal of Knowledge Globalization, 3(2), 51 – 69.

Traditional eastern and western views of knowledge continue to influence the knowledge management practices in today’s... more Traditional eastern and western views of knowledge continue to influence the knowledge management practices in today’s global workplace. Based on these views, several dominant theories have emerged on how to best manage in the international work environment. This research illustrates contradictions in these theories and extracts a new perspective from the dynamic literature stream. This innovative perspective provides an opportunity to leverage cultures and relationships holistically for effective knowledge transfer and cross-cultural understanding, and hence for effective management

Keywords: Knowledge, Culture, International Management, Knowledge Management, Hofstede Framework

Socio-Technical Knowledge Management and Epistemological Paradigms: Theoretical Connections at the Individual and Organisational Level

by Matthew Jelavic

Jelavic, M. (2011). Socio-technical knowledge management and epistemological paradigms: Theoretical connections at the individual and organisational level. Interdisciplinary Journal of Information, Knowledge, and Management, 6(1), 1 – 16.

This paper provides an evaluation of the literature pertaining to the autopoietic, connectionist, and cognitivist... more This paper provides an evaluation of the literature pertaining to the autopoietic, connectionist, and cognitivist epistemological paradigms. These paradigms exist at the individual and organisational level through diametrically opposed functionalist versus interpretive and integrative socio-technical knowledge management perspectives. The alignments of individual and organisational epistemologies are essential to the effectiveness of a knowledge management system. Knowl-edge management should consider the roots of knowledge theoretically in order to share or man-age knowledge dissemination successfully in organisations. The term ‘knowledge sharing’ has been emphasised and discussed comprehensively through its epistemological influential factors. This paper concludes the development of a Knowledge Management Epistemological Synthesis Model (KM-ES Model) and a comprehensive discussion and conclusion section focussing on the implications of epistemological influences on the knowledge management system of an organisa-tion. The results from this study provide both researchers and academicians with a clear under-standing of the interplay between epistemologies and a foundation for establishing an effective organisational knowledge management system.

Keywords: socio-technical, knowledge management, knowledge sharing, epistemology, cognitiv-ist, connectionist, autopoietic, functionalist, interpretive, KM-ES Model

Multidisciplinary Technical Teams: A Case Study

by Matthew Jelavic

Ogilvie, K., & Jelavic, M. (2009). Multidisciplinary technical teams: A case study. Canadian Manager, 33(3), 18 – 19.

Interorganizational Macrocultures in the North American Automotive Manufacturing Industry

by Matthew Jelavic

Jelavic, M., & Ogilvie, K. (2009). Interorganizational macrocultures in the North American automotive manufacturing industry. Canadian Manager, 34(2), 20 – 21.

Maslow and Management: Universally Applicable or Idiosyncratic?

by Matthew Jelavic

Jelavic, M., & Ogilvie, K. (2010). Maslow and management: Universally applicable or idiosyncratic? Canadian Manager, 34(4), 16 – 17.

Globalization, Knowledge Workers and the Expanding European Union: A Lesson for North America?

by Matthew Jelavic

Jelavic, M., & Ogilvie, K. (2010). Globalization, knowledge workers and the expanding European Union: A lesson for North America? Canadian Manager, 35(1), 26 – 27.

Social Network Mapping and Analysis in the Global Aerospace Community

by Matthew Jelavic

Ogilvie, K., & Jelavic, M. (2010). Social network mapping and analysis in the global aerospace community. Canadian Manager, 35(2), 20 – 21.

Management Consulting: Understanding the Process Using Concepts in Neuroscience

by Matthew Jelavic

Vincenti, M., & Jelavic, M. (2011). Management consulting: Understanding the process using concepts in neuroscience. Canadian Manager, 35(4), 22 – 23.

Competence Management in High-Technology Organizations

by Matthew Jelavic

Jelavic, M. (2011). Competence management in high-technology organizations. Canadian Manager, 36(1), 21 – 22.

Tacit Knowledge and Personal Competitive Advantage: An Autopoietic Framework for Knowledge Management in Human Resources

by Matthew Jelavic

Jelavic, M. (2011). Tacit knowledge and personal competitive advantage: An autopoietic framework for knowledge management in human resources. Canadian Manager, 36(3), 22 – 23.

The Neurobiology of Experience: Memory-Prediction and Its Role in the Management Decision-Making Process

by Matthew Jelavic

Jelavic, M., & Vincenti, M. (2012). The Neurobiology of Experience: Memory-Prediction and Its Role in the Management Decision-Making Process. Canadian Manager, 36(4), 26 – 27.