The impact of investor sentiment on the German stock market

This paper develops a broad-based sentiment indicator for Germany and investigates whether investor sentiment can explain stock returns on the German stock market. Based on a principal component analysis, we construct a sentiment indicator that condenses information of several well-known sentiment proxies. We show that this indicator explains the return spread between sentiment sensitive stocks and stocks that are not sensitive to sentiment fluctuations. Specifically, stocks that are difficult to arbitrage and hard to value are sensitive to the indicator. However, we do not find much predictive power of sentiment for future stock returns.     

Contractual relations and organizational structure in franchising

In this paper, we employ a new dataset based on a sample of 123 franchise systems originating from Germany to empirically test hypotheses stemming from agency theory and capital scarcity considerations on the contractual relations and the organizational structure in franchising. We include proxies for the franchisor’s capital scarcity as well as for moral hazard on the franchisee’s and the franchisor’s side. Furthermore, we distinguish between initial and ongoing franchisor support. Our results indicate that agency models based on double moral hazard do explain the design of franchise contracts and the organizational structure in terms of the proportion of franchised outlets. We find that the incentive component of the franchise contract (the royalty rate) is not influenced by moral hazard on the franchisee’s side, but rather by moral hazard on the franchisor’s side. Furthermore, the proportion franchised is strongly influenced by moral hazard on the franchisee’s side. Hence, after providing incentives to outlet managers by turning them into franchisees, thereby granting them residual claimancy, the royalty rate mainly serves to ensure ongoing franchisor input. The franchisor’s capital scarcity influences the fixed fee in franchise contracts and the proportion of franchised outlets, thus supporting standard capital scarcity arguments.     

Emoticons und Personenwahrnehmung: Der Einfluss von Emoticons auf die Einschätzung unbekannter Kommunikationspartner in der Online-Kommunikation

Text-based computer-mediated communication is a daily experience in social as well as work-related communication. Enriching text messages with emoticons to convey emotions or non-verbal communication aspects can provide the recipients with important background information. However, it’s still not well understood how impression formation takes place in text-based computer-mediated communication. This study investigated how using emoticons influences the perception of communication partners in anonymous computer-mediated communication settings. In an online experiment (N?=?50) participants rated communication partners, who used emoticons in the experimental condition and did not use emoticons in the control condition, on the following dimensions: Openness, Friendliness, Warmth, Sense of Humor, and Respectability. Furthermore, they guessed the senders’ sex. Results show medium to strong effects on the dimensions “Warmth” and “Friendliness”: Senders using emoticons received higher ratings on these dimensions. Methodical limitations and implications for further research are discussed.     

Participation and inclusiveness in private rule-setting organizations: does it matter for effectiveness?

Governance, from local to global levels, relies increasingly on private governance arrangements. Private actors, specifically corporations and civil society organizations, increasingly design, implement and monitor rules and standards that guide and prescribe behavior in a range of policy areas, including sustainability, banking and international security, to name a few. Even though the involvement of private actors in global politics is not a new phenomenon, the creation of cooperative arrangements in the form of organizations that lead to private regulation – thus complementing traditional ways of political influence – is relatively novel. This paper focuses on private rule-setting organizations that have emerged in the global governance of sustainability. It starts from the observation that, despite seemingly performing similar roles and functions, organizations differ both in terms of outputs they produce as well as rules of participation and decision-making. Accordingly, the paper evaluates whether organizations providing a more inclusive and participatory approach in relation to others have different implications for the quality and relevance of rules (outputs). Hence, it aims to shed light on the way private rules and standards are decided and the associated implications, in view of their increasing role and relevance in sustainability governance. In more detail, we contend that there is no linear relation between democratic legitimacy and effectiveness. While inclusiveness and representativeness in the standard-setting process will probably lead to more stringent and comprehensive rules, those regulatory systems with high stringency will be the ones least taken up. Empirically, the paper illustrates its argument with a comparison of five private rule-setting organizations that have emerged in the global governance of fisheries sustainability: the Marine Stewardship Council, Friend of the Sea, the Aquaculture Stewardship Council, the Global Aquaculture Alliance and GlobalGAP.     

Translation style and participant roles in court interpreting1

This paper investigates the translation styles of court interpreters in New York City and the styles' social and pragmatic implications for multilingual interactions in court. Interpreters are found to vary between using first or third person to represent the voice of a translated source speaker, thereby varying between adherence to explicit institutional norms that require first person and accommodation to non‐professional interpreting practices that favor the use of reported speech. In a quantitative and qualitative analysis, this variation is shown to be influenced by several pragmatic and social factors, and to index the interpreters' stances towards source speakers and towards the immigrant court users who are the recipients of translations from English. It is argued that translation styles have profound consequences for limited English speakers, as the insistence on institutional norms in translating to them is viewed as a gatekeeping behavior that may impede their full participation in the proceedings.     

Non-migrants’ interethnic relationships with migrants: the role of the residential area,the workplace,and attitudes toward migrants from a longitudinal perspective

This paper studies the determinants of interethnic relationships between non-migrants and migrants in Germany. A large body of literature documents that such relationships generate positive outcomes for individual migrants as well as non-migrants and the social cohesion of host-societies at large. Previous research tends to focus on the migrant side, thereby neglecting the factors enabling non-migrants’ interethnic relationships. Moreover, the existing research on non-migrants exclusively uses cross-sectional data for causal inferences. In contrast, this paper draws on longitudinal data, thus providing a more comprehensive and empirically rigorous picture of the determinants of interethnic relationships. The paper identifies possible determinants of non-migrants’ interethnic relationships, combining them into a single analytical framework that allows for gauging their relative importance. Moderately high migrant shares in the neighbourhood are found to be connected to more interethnic relationships, while a higher share of foreigners in the wider region only has a positive effect for the employed. Neither employment status nor migrant share at work are found to be connected to non-migrants’ interethnic relationships. Finally, persons feeling threatened by immigration and migrants are largely found to be less likely to have interethnic relationships, while sympathy with migrants works in the opposite direction.     

Planning Until Death Do Us Part: Partnership Status and Financial Planning Horizon

Positive economic outcomes of marriage are often explained with a higher future orientation of married individuals who are assumed to plan their finances for a longer period than the nonmarried. Using data from the Household, Income and Labour Dynamics in Australia Survey (2001–2014; N = 4,819 individuals), the authors provide the first longitudinal test of whether individuals change their financial planning horizons when they change their partnership status using fixed and random effects regressions. Results show that the financial planning horizon increases as individuals enter cohabitation. No further changes in financial planning horizons are found when they transition into marriage. Changes in horizons are similar for women and men. These results indicate that longer financial planning horizons and marriage are likely outcomes of couples' long‐term commitment, which develops during cohabitation. The symbolic and legal institution of marriage is not additionally associated with individual financial planning as a dimension of future orientation.     

The traveling salesman problem on grids with forbidden neighborhoods

We introduce the traveling salesman problem with forbidden neighborhoods (TSPFN). This is an extension of the Euclidean TSP in the plane where direct connections between points that are too close are forbidden. The TSPFN is motivated by an application in laser beam melting. In the production of a workpiece in several layers using this method one hopes to reduce the internal stresses of the workpiece by excluding the heating of positions that are too close. The points in this application are often arranged in some regular (grid) structure. In this paper we study optimal solutions of TSPFN instances where the points in the Euclidean plane are the points of a regular grid. Indeed, we explicitly determine the optimal values for the TSPFN and its associated path version on rectangular regular grids for different minimal distances of the points visited consecutively. For establishing lower bounds on the optimal values we use combinatorial counting arguments depending on the parities of the grid dimensions. Furthermore we provide construction schemes for optimal TSPFN tours for the considered cases.