Digital Finance and FinTech: current research and future research directions

Since decades, the financial industry has experienced a continuous evolution in service delivery due to digitalization. This evolution is characterized by expanded connectivity and enhanced speed of information processing both at the customer interface and in back-office processes. Recently, there has been a shift in the focus of digitalization from improving the delivery of traditional tasks to introducing fundamentally new business opportunities and models for financial service companies. Digital Finance encompasses a magnitude of new financial products, financial businesses, finance-related software, and novel forms of customer communication and interaction—delivered by FinTech companies and innovative financial service providers. Against this backdrop, the research on finance and information systems has started to analyze these changes and the impact of digital progress on the financial sector. Therefore, this article reviews the current state of research in Digital Finance that deals with these novel and innovative business functions. Moreover, it gives an outlook on potential future research directions. As a conceptual basis for reviewing this field, the Digital Finance Cube, which embraces three key dimensions of Digital Finance and FinTech, i.e., the respective business functions, the technologies and technological concepts applied as well as the institutions concerned, is introduced. This conceptualization supports researchers and practitioners when orientating in the field of Digital Finance, allows for the arrangement of academic research relatively to each other, and enables for the revelation of the gaps in research.     

Popularity Contagion Among Adolescents

This study aimed to support the theory of popularity contagion, which posits that popularity spreads among friends spontaneously and regardless of behavioral changes. Peer nominations of status and behavior were collected annually between 6th and 12th grades from a total of 1062 adolescents. Longitudinal hypotheses were mostly supported using path analyses, showing (1) that individual popularity could be predicted by friends’ popularity levels over time, even when controlling for stability of individual popularity; (2) that this prediction was not accounted for by behavioral contagion of aggressive or prosocial behaviors; and (3) that individual social preference generally could not be predicted by friends’ preference levels over time. Implications, limitations, and directions for future research are discussed.     

Marginal zero-inflated regression models for count data

Data sets with excess zeroes are frequently analyzed in many disciplines. A common framework used to analyze such data is the zero-inflated (ZI) regression model. It mixes a degenerate distribution with point mass at zero with a non-degenerate distribution. The estimates from ZI models quantify the effects of covariates on the means of latent random variables, which are often not the quantities of primary interest. Recently, marginal zero-inflated Poisson (MZIP; Long et al. [A marginalized zero-inflated Poisson regression model with overall exposure effects. Stat. Med. 33 (2014), pp. 5151–5165]) and negative binomial (MZINB; Preisser et al., 2016) models have been introduced that model the mean response directly. These models yield covariate effects that have simple interpretations that are, for many applications, more appealing than those available from ZI regression. This paper outlines a general framework for marginal zero-inflated models where the latent distribution is a member of the exponential dispersion family, focusing on common distributions for count data. In particular, our discussion includes the marginal zero-inflated binomial (MZIB) model, which has not been discussed previously. The details of maximum likelihood estimation via the EM algorithm are presented and the properties of the estimators as well as Wald and likelihood ratio-based inference are examined via simulation. Two examples presented illustrate the advantages of MZIP, MZINB, and MZIB models for practical data analysis.     

Measuring operational excellence: an operational excellence profitability (OEP) approach

The pursuit of operational excellence in the manufacturing industry is at rise but its measurement still lacks of appropriate indicators to determine its financial benefits. The ambiguity is due to the impact arisen from manufacturing fluctuations such as price and cost, production mix and direct and indirect parameters variations. Manufacturing fluctuations distort the cost benefit of operational excellence. This paper, therefore, proposes the OEP (Operational Excellence Profitability) indicators to isolate the impact of manufacturing fluctuation and distinctly identify the payback of operational excellence strategies and initiatives through cost benefits of achieving higher efficiency and yield. The paper presents the conceptual and mathematical development of the proposed OEP indicators and the formulas used for their calculation. Hypothetical and industrial-based investigations and applications of the OEP indicators are conducted for their validation. The results obtained from the hypothetical exercise and industrial case suggest that OEP indicators can provide an effective cost-benefit analysis of operational excellence. This would contribute in providing manufacturing organizations with more complete information regarding the performance of their processes, which will allow their directors and managers to take better decisions related to the management and improvement of their processes.     

In search of message design best practices: The Silver Anvil Award winners archive

We investigated specific award-winning public relations efforts to derive best practices that bridge industry practices with academic research and pedagogy. The data for this project were the winning entries for the annual Public Relations Society of America's (PRSA) Silver Anvil Award, which is considered the top award recognizing excellence in public relations. We found, however, that the archive of award winners does not provide sufficiently definitive information about what defines any public relations discourse genre or why any genre as used is “excellent.” This archival research provides us with a key rationale for employing rhetorical, narrative, and linguistic theories prospectively to guide public relations message design and planning, theories which hitherto have been used to judge campaigns post hoc or retrospectively.     

Technische Softwaredokumentation unter ?konomischen Gesichtspunkten – Ein formal-deduktiver Ansatz

Only a very low priority seems to be given to software documentation. For example, about 80% of the software systems in production worldwide are badly documented. In contrast empirical studies confirm that an adequate technical documentation reduces the error rate of subsequent changes during software maintenance. This leads to the question about the optimal scale of investment in technical documentation in any software project. In research, this decision problem has been largely neglected. Since underlying cause-effect relationships may be empirically hard to detect, this paper proposes a new deductive approach, which compares the present value of payments for the documentation and bug fixing. The basis of this model is the phenomenon of error propagation from one component to adjacent components through its dependencies. As a result the following hypothesis can be inferred: It is always beneficial to document too much rather than comparatively too little even for an arbitrarily low quality of documentation and for any required rate of interest. This hypothesis shows robustness even against some changes in assumptions.     

Falsificationism is not just ‘potential’ falsifiability,but requires ‘actual’ falsification: Social psychology,critical rationalism,and progress in science

Based on an analysis of ten popular introductions to social psychology, we will show that Karl Popper's philosophy of ‘critical rationalism’ so far has had little to no traceable influence on the epistemology and practice of social psychology. If Popper is quoted or mentioned in the textbooks at all, the guiding principle of ‘falsificationism’ is reduced to a mere ‘falsifiability’ and some central elements of critical rationalism are left out – those that are incompatible with positivism and inductivism. Echoing earlier attempts to introduce Popper to social psychology by Paul Meehl and Tom Pettigrew, we will argue that a discussing Popper's ideas in more depth could help social psychology to move forward in view of the ‘crisis of confidence’ (Pashler and Wagenmakers, 2012) that has emerged recently in view of the ‘Stapel affair’ and the reports of failures to replicate social psychological experiments in high‐powered replication attempts.