• Bank capital: a myth resolved

      Van Laere, Elisabeth; Baesens, Bart; Thibeault, André (2007)
      In order to promote financial stability, regulatory authorities pay a lot of attention in setting minimum capital levels. In addition to these requirements, financial institutions calculate their own economic capital reflecting the unexpected losses and true risk according to the specific characteristics of their portfolio. The current Basel I framework pays little or no attention to the creditworthiness of a borrower in deciding on the regulatory capital requirements. As a result, a lot of banks remove low-risk assets from their balance sheets and only retain relatively high risk assets on balance. The recently introduced Basel II framework should result in a further convergence between regulatory and economic capital. However, recent papers (Elizalde et al., 2006, Jackson et al., 2002 and Jacobson et al. 2006) argue that also under Basel II, regulatory and economic capital will have different determinants. This paper first gives an overview of capital adequacy and then further describes the differences and similarities between economic and regulatory capital based on a literature review.
    • The batteries of change. Is your organisation energised for change

      De Prins, Peter; Letens, Geert; Verweire, Kurt (2018)
      This white paper by Prof Peter De Prins, Prof Geert Letens and Prof Kurt Verweire sets out a new change model and outlines how you can use it to make lasting, effective change happen in your organisation.
    • Board composition, corporate performance and dividend policy

      Dehaene, Alexander; Ooghe, Hubert (UGent, Fac. Economie & Bedrijfskunde, 1998)
    • Building a conceptual framework on the exploratory job search

      Buyens, Dirk; De Witte, Karel; Martens, G. (UGent, Fac. Economie & Bedrijfskunde, 2001)
    • Business failure prediction: simple-intuitive models versus statistical models

      Ooghe, Hubert; Spaenjers, Christophe; Vandermoere, Pieter (Vlerick Business School, 2005)
      We give an overview of the shortcomings of the most frequently used statistical techniques in failure prediction modelling. The statistical procedures that underpin the selection of variables and the determination of coefficients often lead to ‘overfitting'. We also see that the ‘expected signs' of variables are sometimes neglected and that an underlying theoretical framework mostly does not exist. Based on the current knowledge of failing firms, we construct a new type of failure prediction models, namely ‘simple-intuitive models'. In these models, eight variables are first logit-transformed and then equally weighted. These models are tested on two broad validation samples (1 year prior to failure and 3 years prior to failure) of Belgian companies. The performance results of the best simple-intuitive model are comparable to those of less transparent and more complex statistical models.
    • Capital inadequacies: The dismal failure of the Basel regime of bank capital regulation

      Dowd, Kevin; Hutchinson, Martin; Hinchliffe, Jimi; Ashby, Simon (2011)
      The Basel regime is an international system of capital adequacy regulation designed to strengthen banks’ financial health and the safety and soundness of the financial system as a whole. It originated with the 1988 Basel Accord, now known as Basel I, and was then overhauled. Basel II had still not been implemented in the United States when the financial crisis struck, and in the wake of the banking system collapse, regulators rushed out Basel III.
    • Change recipients' attitudes toward change: a review study

      Bouckenooghe, Dave (2009)
      In this paper, we present a meta-heuristic algorithm for the resource-constrained project scheduling problem with discounted cash flows. We assume fixed payments associated with the execution of project activities and develop a heuristic optimisation procedure to maximise the net present value of a project subject to the precedence and renewable resource constraints. We investigate the use of a bi-directional generation scheme and a recursive forward/backward improvement method from literature and embed them in a meta-heuristic scatter search framework. We generate a large dataset of project instances under a controlled design and report detailed computational results. The solutions and project instances can be downloaded from a website in order to facilitate comparison with future research attempts.
    • Changes in the industrial and geographical diversification of leading firms in European manufacturing

      Rondi, L.; Sleuwaegen, Leo; Vannoni, D. (Vlerick Business School, 2003)
      The authors present an original attempt to trace the changing industrial and geographical diversification strategy of firms along the integration process. The analysis is based on a unique database covering the product and geographical scope of the leading European firms in the manufacturing sectors for three years characterising different moments in the integration process, 1987 (start), 1993 (half-way) and 1997 (near completion). Before analysing the data, the authors offer some theoretical perspectives about the consequences of the European market integration program for the international strategies and structures of European firms.
    • Characterisation and generation of nurse scheduling problem instances

      Vanhoucke, Mario; Maenhout, Broos (Vlerick Business School, 2005)
      In this paper, we propose different complexity indicators for the well-known nurse scheduling problem (NSP). The NSP assigns nurses to shifts per day taking both hard and soft constraints into account. The objective is to maximize the nurses' preferences and to minimize the total penalty cost from violations of the soft constraints. The problem is known to be NP-hard. Due to its complexity and relevance in practice, the operations research literature has been overwhelmed by different procedures to solve the problem. The complexity has resulted in the development of several (meta-)heuristic procedures, able to solve a NSP instance heuristically in an acceptable time limit. The practical relevance has resulted in a never-ending amount of different NSP versions, taking practical, case-specific constraints into account. The contribution of this paper is threefold. First, we describe our complexity indicators to characterize a nurse scheduling problem instance. Secondly, we develop a NSP generator to generate benchmark instances to facilitate the evaluation of existing and future research techniques. Finally, we perform some preliminary tests on a simple IP model to illustrate that the proposed indicators can be used as predictors of problem complexity. Keywords: Nurse scheduling, Benchmark instances, Problem classification
    • Co-branding in advertising: the issue of product and brand-fit

      Geuens, Maggie; Pecheux, C. (2006)
      Three studies are conducted to investigate co-branding in advertising by manipulating product and brand fit. Polarity of brand images (positive or neutral) and the type of ad processing (top-down versus bottom up) were also taken into account. The results show that either product or brand fit is sufficient to produce positive attitudes towards the core brand in case of a high image core brand. However, these results do not hold for core brands with a neutral image. In that case, brands better team up with a brand possessing high product fit and/or a positive image instead of a similar image.
    • Cognitive styles and person-environment fit: an inquiry on the consequences of cognitive (mis)fit

      Cools, Eva; Van den Broeck, Herman (2007)
      There is currently considerable interest in the key elements of person-environment fit to understand vocational behaviour and to develop strategic human resource management practices. In the light of this interest, we wanted (1) to investigate with the new Cognitive Style Indicator whether people within similar functions have similar cognitive styles, and (2) to examine the consequences of cognitive (mis)fit on three work attitudes. We used two large-scale databases (N = 24,267 and N = 2,182) to address these issues. We identified mainly a knowing-oriented cognitive climate in finance, information technology (IT), and research and development (R&D) functions, a planning-oriented cognitive climate in administrative and technical and production functions, and a creating-oriented cognitive climate in sales and marketing functions and general management. Furthermore, our findings demonstrated that people with a creating style show more job search behaviour and intention to leave than people with a planning style, irrespective of the cognitive climate they are working in. We contribute to increased understanding of the influence of cognitive styles on organisational behaviour and work attitudes. This study is relevant for selection and recruitment policies of organisations and in the context of training, job design, and workforce planning.