FEMIB 2020 Abstracts

Area 1 - Accounting and Finance

Full Papers

Paper Nr:	3
Title:	DLT-based Tokens Classification towards Accounting Regulation
Authors:	Luz Parrondo
Abstract:	Distributed Ledger Technologies (DLT) are distributed, secured and immutable ledgers that allow technology to intermediate and empower new ecosystem-based business models. DLT-based tokens digitally represent a wide variety of assets from securities to commodities or merely as means of payment within a DLT network. However, DLT-tokens may (alternatively or jointly) grant digital access to a DLT platform, serve as incentivation system or as a right for future consumption of goods or services. The aim of this paper is to provide a first definition, classification and guidance for accounting treatment of the DLT-based tokens. The paper proposes four factors as determinants to classify digital tokens as payment tokens, utility tokens and security tokens. Factor number one is the existence of a legal right against a counterparty; second, the existence of value stability; third, the existence of intrinsic value; and forth, existence of investment risk for the token-holder. First, the analysis suggests that tokens failing to comply with the first and second condition classify as payment tokens. These payment tokens subdivide into stablecoins and cryptocurrencies if alternatively satisfy the third (value stability) or fourth condition (investment risk). Second, tokens that satisfy the first, second and third condition classify as utility tokens. And finally, tokens satisfying the first, third and fourth condition classify as security tokens. Furthermore, the paper provides with initial guidance for accounting treatment in each category
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Short Papers

Paper Nr:	6
Title:	A Survey on Machine Learning for Stock Price Prediction: Algorithms and Techniques
Authors:	Mehtabhorn Obthong, Nongnuch Tantisantiwong, Watthanasak Jeamwatthanachai and Gary Wills
Abstract:	Stock market trading is an activity in which investors need fast and accurate information to make effective decisions. Since many stocks are traded on a stock exchange, numerous factors influence the decision-making process. Moreover, the behaviour of stock prices is uncertain and hard to predict. For these reasons, stock price prediction is an important process and a challenging one. This leads to the research of finding the most effective prediction model that generates the most accurate prediction with the lowest error percentage. This paper reviews studies on machine learning techniques and algorithm employed to improve the accuracy of stock price prediction.
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Paper Nr:	17
Title:	A Simple Scenario-based Qualitative Model for Assessing Start-up Risks
Authors:	Y. B. Nordal
Abstract:	ISO 31000:2018 Risk Management Guidelines and COSO:2017 Enterprise Risk Management framework have two important and common characteristics. Firstly, they connect risks with business objectives. Secondly, they define risks as potential events that represent both positive and negative deviations from the expected. When a start-up company assesses its risks, the readily available source often consists of a blog-post on enterpreneurship that defines for instance 5, 10 or 15 potential events, which may represent negative consequences for its growth and development. Only some of these sources offer a classification of the risks so that the given start-up can see whether these risks are spread on different areas/dimensions or if they are accumulated in a few areas. To date, there are no easily available models which visualize the focus areas that the start-up ought to give priority to and treat with actions.This paper aims to contribute to solve the above-mentioned challenges by introducing a scenario-based model, which takes into account risks as well as opportunities in accordance with ISO 31000:2018. The model defines 4 complex risk dimensions/focus areas, each of them consisting of 10 elements and 60 potential scenarios. The scenarios are ranked in accordance with the degree of contribution to a start-up’s risks and opportunities. The results of the scenario analysis are summarized through the use of a likelihood barometer. The barometer visualises whether the start-up’s risks and opportunities are concentrated on one risk dimension, or whether these are spread on several dimensions. Thereafter, a traditional risk matrix is used to evaluate and rank the risks and opportunities which represent the highest negative and positive contributions to the start-up’s failure or success.
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Paper Nr:	35
Title:	Ethical Questions Raised by Public Accountants in Colombia Related to Tax Advice
Authors:	Jimmy V. Daza and Jasleidy P. Segura
Abstract:	This research seeks to establish the ethical questions posed by public accountants against the responsibility of satisfying the needs and requirements of clients advised especially in tax and tax matters. An analysis is carried out through the mixed methodology, in which the survey is used as a collection instrument, applied to a population of public accountants in progress and in exercise, complementing with the systematic review of the literature that provides the foundations to sustain from the theory the ethical and moral approaches, obtaining as results that 41.1% of the respondents know and appropriates the ethics code of the IFAC and 36.7% the law 43 of 1990, but contradicting themselves that despite the knowledge of the breaches of ethics, 61.1% have knowledge about avoidance practices or tax evasion in the companies that have worked, reflecting in a hypothetical way a breach of ethics from a justified framing in the categorical.
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Paper Nr:	2
Title:	How Did MiFID Affect Systemic Underperformance in the European Equity Market? A Tracking Error based Approach
Authors:	Cheikh Niang and Alois Kanyinda-Kasanda
Abstract:	Using a new methodology based on the decomposition of tracking error, we show that the implementation of MiFID improved the quality of European equity markets. The latter was favorable to the European equity investors’ ability to reach their investment objectives as measured by the systemic downside tracking error. In other words, after the implementation of the MiFID directive, investors were less likely to underperform due to unfavorable market characteristics. The results were statistically significant at the 95% significance level.
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Area 2 - Economics

Full Papers

Paper Nr:	7
Title:	Measures of Monetary Policy in Latin America
Authors:	Trung T. Bui
Abstract:	Although the instrumentation of monetary policy is still constantly debated in the existing literature, there is a paucity of studies investigating this problem in emerging economies, especially after the recent global financial crisis. The objective of the paper is to investigate the role of interest rate and money supply as an overall measure of monetary policy in four major Latin America economies that follow the inflation targeting framework. Evidence from causality test and the analysis of impulse response function shows that both indicators have explanation for price movement. The price puzzle is clearly visible follows positive shocks to interest rate. These findings suggest that a composite index can be a better measure of monetary policy and other means should be conducted to improve the performance of the interest rate policy.
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Paper Nr:	27
Title:	A Comprehensive Evaluation of Economic Vitality and Markov's Prediction: An Empirical Study of a Major City in China
Authors:	Ziqian Xia, Jinquan Ye and Xie Guan
Abstract:	The region's economic vitality is an important part of its competitiveness. Based on previous studies, we use the grounded theory to perform indexing and then uses the Entropy method and Topsis evaluation methods to conduct a comprehensive evaluation of economic vitality for a major city in China. Finally, Markov forecasting is deployed. The forecasting method studied the trend of the vitality. Economic vitality is of great significance to regional economic division and regional policy formulation. Our thesis uses Chinese data to construct a model of economic vitality, filling an empirical gap in economic vitality research.
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Area 3 - Emerging Areas in FEMIB

Short Papers

Paper Nr:	8
Title:	A Commons-compatible Implementation of the Sharing Economy: Blockchain-based Open Source Mediation
Authors:	Petra Unterberger, Manfred Mayr, Maximilian Tschuchnig and Peter Haber
Abstract:	The network economical sharing economy, with direct exchange as a core characteristic, is implemented both, on a commons and platform economical basis. This is due to a gain in importance of trust, collaborative consumption and democratic management as well as technological progress, in the form of near zero marginal costs, open source contributions and digital transformation. Concurrent to these commons-based drivers, the grey area between commerce and private exchange is used to exploit work, safety and tax regulations by central platform economists. Instead of central intermediators, the blockchain technology makes decentralized consensus finding, using Proof-of-Work (PoW) within a self-sustaining Peer-to-Peer network, possible. Therefore, a blockchain-based open source mediation seems to offer a commons-compatible implementation of the sharing economy. This thesis is investigated through a qualitative case study of Sardex and Interlace with their blockchain application, based on expert interviews and a structured content analysis. To detect the most commons-compatible implementation, the different implementation options through conventional platform intermediators, an open source blockchain with PoW as well as Interlaces’ permissioned blockchain approach, are compared. The following confrontation is based on deductive criteria, which illustrates the inherent characteristics of a commons-based sharing economy.
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Paper Nr:	10
Title:	Comparative Study of e-Commerce Ventures: Copycat Enablers in Business Models
Authors:	Christian Haertel, Matthias Pohl, Sascha Bosse, Robert Häusler, Abdulrahman Nahhas, Daniel Staegemann, Matthias Volk and Klaus Turowski
Abstract:	The copycat approach - replicating proven business models - presents an alternative to following the classic entrepreneurial path in venture creation which is highly contested due to the common perception of being non-innovative and of low-risk. However, existing literature contradicts this conception. This paper features a case study of German e-commerce copycats and their American originals, showing that success of imitating firms cannot be guaranteed despite the utilization of proven business models. From this, potential crucial features influencing the destiny of these copycats are extracted. The outlined enablers are the served markets, post-imitation learning and the usability of the platform. Furthermore, possible useful other tendencies that could be examined in future research are provided.
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Paper Nr:	13
Title:	Huff Model for Shopping Centre Assessment using Aggregated Mobile Phone Data
Authors:	Irina Arhipova, Gundars Berzins, Aldis Erglis, Evija Ansonska, Juris Binde and Andris Kovalcuks
Abstract:	There are several models of gravity, one of which is Huff model. It calculates customer gravity probabilities for existing locations of trade objects. In this study, aggregated mobile data-based approach using Huff model to determine the market share of trading objects is developed. The mobile activity data is used to give a more precise understanding of available number of potential customers in a certain territory of Latvia. By using the mobile phone base station unique number of users per day in 2016 within an area of each shopping centre, it is possible to determine the unique user share and ratio between shopping centres. The use of mobile data, as well as other statistics and real estate appraisal data, provides the opportunity to create universal criteria for location and shopping centre standardization to compare prices for similar real estates in a specific region. The research results have shown that the mobile activity data could be applied in gravity-based Huff model for estimation of retail attractiveness and market share.
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Area 4 - IT Business

Short Papers

Paper Nr:	28
Title:	A Smart Treasury Fit for the 4th Industrial Revolution
Authors:	Johan von Solms and Josef Langerman
Abstract:	This paper looks at the importance of Treasury management, within a typical commercial bank and evaluates how digital technology can support this key function in the future. Since the 2008 financial crisis, the role and responsibility of Treasury has grown significantly in terms of scope and strategic importance. There are an ever-increasing number of requirements from Regulators, Senior Management and Shareholders, that Treasury must deliver on - as the guardian of the bank’s balance sheet. To meet these growing demands and challenges Treasury needs to consider ways to streamline its operational activities, in order to become more strategically focussed. Leveraging digital technologies associated with the 4th Industrial Revolution can play an important part in the transition towards an intelligent Treasury of the future. However, it is imperative to have a proper and well-defined digital roadmap that can steer the evolution of the Treasury function. This paper’s aim is to research and outline an approach that can guide the establishment of a next generation smart Treasury. It considers a couple of management issues common to most bank Treasuries and then demonstrates how these activities can be converted to smart processes through digitalisation.
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Area 5 - Management

Full Papers

Paper Nr:	23
Title:	Ambiguity of Innovation Typology in Innovation Measurement: Towards a Unified Typology of Innovation and Measurement Model
Authors:	Tomasz Sierotowicz
Abstract:	Innovations are seen as opportunities to sustain and accelerate countries’ development of not only their companies but also their economies. The literature on the subject presents a number of different and often contradictory typologies of innovation. This raises the problem of discrepancies in terms of the definitions, as well as possible socio-economic effects of particular types of innovation and their relationships to ex post and ex ante phases in innovation process models. So far, no attempt has been made to address the problem of unifying the typologies of innovation. The main objective of this paper is to attempt this challenge and propose one consistent typology of innovation that allows the design of a framework for an innovation measurement model. The presented research results are the next steps towards developing a consistent innovation theory, and will help design a coherent innovation measurement model.
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Short Papers

Paper Nr:	18
Title:	Determinants of Technological Innovation Capabilities: Using Fuzzy-DEMATEL and ANP
Authors:	Chien-Ke Huang, Chi-Hui Wu, Jing Li and Chih-Ling Hsieh
Abstract:	This paper applies Fuzzy-DEMATEL and ANP to analyse the decisive determinants of technological innovation capabilities (TICs) and the weight relation in high-tech and traditional manufacturing industries. Technological innovation capabilities comprise various features that are complex and interrelated. Thus, the purpose of this paper is to clarify the causal relationship of the various features to precisely provide the enterprises with some determinants to maximize the effectiveness of resource utilization. In terms of dimension, the research shows that the innovation management capability is the decisive factor of technological innovation capabilities for high-tech industry and traditional manufacturing industry, which affects the other five dimensions. However, in terms of criteria, learning capabilities are decisive determinants. Therefore, in the face of competitive environment with continuous shortening of the product life cycle and rapidly changing customer demands, overall, in order to enhance innovation capabilities, enterprises must focus on the improvement of innovation management capabilities. In regard to the detail factors, the enterprises must enhance the learning capabilities to recognize, absorb and make use of knowledge from the internal organization in order to strengthen the knowledge management capability, the innovative decision-making capability and technology of the enterprise itself.
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Paper Nr:	21
Title:	A Review Paper on the Application of Big Data by Banking Institutions and Related Ethical Issues and Responses
Authors:	Victor Chang, Lina Xiao, Qianwen Xu and Mitra Arami
Abstract:	Nowadays, Big Data and the Internet of Things (IoT) are one of the most popular topics. This review paper demonstrates an overview of the application of Big Data and IoT in banking institutions. In the beginning, a brief definition of Big data and IoT is provided and the integration of technologies by banks is illustrated. Then, this paper explains the potential sources where banks could generate Big Data. Next, the major works that banking institutions use Big Data are listed. In the final two parts, some acute ethical concerns are raised and appropriate solutions are suggested for the banking industry and other organizations.
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Paper Nr:	30
Title:	Towards the Innovation of High-tech Small-medium Enterprises (SMEs): The Interview Approach
Authors:	Wei Xue, Victor Chang, Yijie Chen and Qianwen Xu
Abstract:	With the intensive global market competition, the Chinese central government is paying more attention to the innovation of SMEs, especially for high-tech SMEs. This paper conducts the interview approach to investigate the status of innovation and its importance to SMEs in Suzhou. R&D development requires innovation as a key element. Findings from interviewees are positive towards innovation. Innovation has been used throughout the SMEs – from strategies, marketing, products to services. This implementation makes SMEs in Suzhou more competitive than most other cities of China by offering positive thinking and dynamic inputs to produce more creative products and services. However, problems have been identified. Although SMEs are the main body of technological innovation, but it is difficult for them to survive. We plan to propose a framework that contains all factors influencing R&D and carefully set hypotheses. With our mixed-method approach in our future work, we present more results and analysis based on our findings.
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