The Effects of Variable and Fixed Transaction Costs on Optimal Investment Decisions

Article Abstract:

The traditional capital asset pricing model is extended and generalized. Variable and fixed transaction costs explain the investor's lack of portfolio diversification. The effects of transaction costs on market equilibrium are considered. Study results indicate that relaxing the assumption of the absence of transaction costs eliminates unattractive theoretical implications of the traditional model. A theoretical explanation for the popularity of mutual funds is provided. The linear relationship between expected return of individual assets and risk is preserved in the extended model.

Study and teaching, Capital assets pricing model, Capital asset pricing model

---

Structure, Environment, and Organizational Governance in Manufacturing

Article Abstract:

A comparative study of organizational governance theories is presented. One theory emphasizes administrative rationality and the second emphasizes competitive politics. An explicit causal model is introduced. Three variables are site structure, environment and delegation. A path model of organizational governance is developed. The model is found to have predictive accuracy. New evidence is provided on the effects of professionalism on decentralization. Relationships between styles of organizational structural features are identified.

Methods, Management, Product information, Organizational research, Organizational behavior

---

Generating explanations for goal-based decision making

Article Abstract:

A study was conducted to evaluate an automated decision making program. The VOTE program incorporates a goal-based decision making while providing natural language explanations in stating decisions using French or English language. The program is applied in Congress, where it simulates voting decisions by some members on certain House bills. The model is also expected to function well when applied to general business situations.

Software, Natural language processing, Natural language interfaces

Similar abstracts:

• Abstracts: The effects of organizational context on quality management: an empirical investigation. A method of multiattribute decision making with incomplete information
• Abstracts: The promotional roles of state government and Japanese manufacturing direct investment in the United States. Shareholder control and financial distress in the thrift industry
• Abstracts: The Predictive Ability Criterion in Experimental Judgement Research in Accounting. A learning curve analysis of expert system use

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.