FEMIB 2023 Abstracts

Area 1 - Accounting and Finance

Full Papers

Paper Nr:	5
Title:	Trading Strategy Validation Using Forwardtesting with Deep Neural Networks
Authors:	Ivan Letteri, Giuseppe Della Penna, Giovanni De Gasperis and Abeer Dyoub
Abstract:	Traders commonly test their trading strategies by applying them on the historical market data (backtesting), and then reuse on their (future) trades the strategy that achieved the maximum profit on such past data. In this paper we propose a novel technique, that we shall call forwardtesting, that determines the strategy to apply by testing it on the possible future predicted by a deep neural network that has been designed to perform stock price forecasts and trained with the market historical data. Our results confirm that neural networks outperform classical statistical techniques when performing such forecasts, and their predictions allow to select a trading strategy that, when applied to the real future, results equally or more profitable than the strategy that would be selected through the traditional backtesting.
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Short Papers

Paper Nr:	10
Title:	The Correlation of ESG Ratings and Abnormal Returns: An Event Study Using Machine Learning
Authors:	Dominic Strube and Christian Daase
Abstract:	This short study uses machine learning (ML) to investigate whether the inclusion of sustainability ratings in the training data can improve the estimated accuracy of the prediction of a company’s abnormal returns. For this purpose, we examined 72 companies that are listed in the indices EURO STOXX 50 ® or/and EURO STOXX 50 ® ESG or/and EURO STOXX® ESG LEADERS 50. We found out that the mean-adjustment model used to estimate returns produces more accurate results than with adding MSCI’s sustainability ratings. The preliminary results suggest that sustainability ratings are currently inappropriate for estimating expected or abnormal returns and their inclusion in the training data interferes the algorithm behind the ML approach. By extension, this leads to the assumption that the relation between ESG ratings and a business’ success are suitably irregular to significantly decrease an ML models quality.
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Paper Nr:	12
Title:	Analysis of Production Costs: An Approach to Decision-Making
Authors:	Sebastián Tapia-Quezada, Lisseth Lucero-Hurtado, Fabiola Reino-Cherrez, Lorena Siguenza-Guzman and Rodrigo Arcentales-Carrion
Abstract:	Due to competitive growth, companies need to have a cost system that allows them to identify all the costs incurred in the production process. Furthermore, it is necessary to know the company’s needs and production characteristics for its implementation. That is why the present investigation analyzes the production costs in an Ecuadorian textile SME dedicated to manufacturing and commercializing lingerie for the home. This study aims to identify a cost model that adapts to the characteristics and needs of the organization, both economical and productive. The methodology is based on a) organizational knowledge and information gathering, b) analyzing the production costs, and c) establishing the optimal cost model proposal. The findings indicate that the textile SME does not have a production cost system that allows timely decision-making. Thus, the study proposes implementing a cost system for operations since it best adapts to the characteristics and needs of the case study. Furthermore, this system aims to optimize the entity’s internal processes, allowing timely decision-making, both strategic and productive.
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Area 2 - Economics

Short Papers

Paper Nr:	17
Title:	Transportation Infrastructure and Market and Supplier Access: How Do They Shape Foreign Direct Investment?
Authors:	Natalia Vechiu
Abstract:	Although the benefits of transportation infrastructure for economic and social development are generally unquestionable, depending on the transportation mode and the economic development of countries, sometimes transportation infrastructure does not have the expected positive impacts, or it may even hinder economic development. In this paper, we focus on the impact of different types of transportation infrastructure on foreign direct investments, in a close relation to the market/supplier access as an essential determinant for FDIs and thus, a potential significant interaction term with transportation infrastructure. Based on the new economic geography models, we attempt to distinguish between international and domestic transportation infrastructure in destination countries and test their impact on bilateral FDI stocks, in a gravity type setting. We take the liner shipping bilateral connectivity index as a proxy for international infrastructure and railroads density as a proxy for the domestic one. Using a panel dataset from 2008 to 2012, we find evidence that different transportation infrastructures have different impacts depending on the countries’ economic development level: international infrastructure has a strong and significant positive impact on FDIs, whereas the impact of railroads depends on destination countries’ economic development.
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Area 3 - Emerging Areas in FEMIB

Full Papers

Paper Nr:	16
Title:	Optimizing Transport Network to Reduce Municipality Mobility Budget
Authors:	Irina Arhipova, Nikolajs Bumanis, Liga Paura, Gundars Berzins, Aldis Erglis, Gatis Vitols, Evija Ansonska, Vladimirs Salajevs and Juris Binde
Abstract:	Mobility budgets dictate the limit of CO2 per capita, which is calculated based on the mode of travel and distance. Mobility budgets are one of the final goals of the optimisation of transportation network, when the aspects of fairness and equity are considered. The main problem arises when we focus on multiple criteria of fairness and equity. In addition, it was observed that any drastic change in behaviour leads to inadequate initial parametrisation, especially under the effects of COVID-19. This can also mean that optimising transportation network according to class-to-be is most likely to cause behaviour changes in relation to the use of public transport. The aim of this article is to define the structure of optimisation task, based on mobility budget provided on a monthly basis. This research was based on public transportation data and mobile activity data. The former was used to determine the usage of public transport during 2017 and 2022, while the latter provided enough information to determine exactly how COVID-19 affected the behaviour of city districts and provide concrete information regarding necessary re-planning measures for public transportation station locations. In result, the optimisation solution was proposed by defining case-specific objective functions and constraints.
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Short Papers

Paper Nr:	22
Title:	A Review on Cryptocurrency Transaction Methods for Money Laundering
Authors:	Hugo Almeida, Pedro Pinto and Ana Fernández Vilas
Abstract:	Cryptocurrencies are considered relevant assets and they are currently used as an investment or to carry out transactions. However, specific characteristics commonly associated with the cryptocurrencies such as irreversibility, immutability, decentralized architecture, absence of control authority, mobility, and pseudo-anonymity make them appealing for money laundering activities. Thus, the collection and characterization of current cryptocurrency-based methods used for money laundering are paramount to understanding the circulation flows of physical and digital money and preventing this illegal activity. In this paper, a collection of cryptocurrency transaction methods is presented and distributed through the money laundering life cycle. Each method is analyzed and classified according to the phase of money laundering it corresponds to. The result of this article may in the future help design efficient strategies to prevent illegal money laundering activities.
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Area 4 - IT Business

Short Papers

Paper Nr:	21
Title:	Exploring Risks in the Metaverse in an Immersive Digital Economy
Authors:	Victor Chang, Sandra Strittmatter, Vitor Jesus, Lewis Golightly, Pin Ni and Karl Hall
Abstract:	The Metaverse is the next paradigm of computing and a combination of the words next and the universe. Immersive technology such as Virtual Reality (VR), Augmented Reality (AR), Mixed Reality (MR), and Extended Reality (XR) have been emerging at a fast pace in recent years. The Metaverse aims to solve the limited social dynamic of using the internet for communications. Since the Covid-19 pandemic, the internet has been used for education, work, and gaming in a more immersive method than ever before. However, the problem the Metaverse aims to solve is the social limitations of using technology such as Microsoft teams. In this paper, we address the opportunities of the Metaverse, such as online gaming and an enhanced 3D virtual community life, alongside the potential of cyber risk and security issues, such as data privacy and information security. We complement our paper with a risk assessment of the Metaverse, particularly focusing on risks associated with cybersecurity.
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Area 5 - Management

Full Papers

Paper Nr:	13
Title:	Using Fuzzy Multiple Criteria Decision Analysis to Explore the Decisive Factors of Charismatic Leadership
Authors:	Chi-Hui Wu, Chi-Hui Wu, Jing Li, Jing Li, Chao-Yu Chen and Chao-Yu Chen
Abstract:	Charismatic leadership is a key factor that affects organizational effectiveness, team effectiveness, and the behavior of subordinates. How to effectively lead an organization and motivate members through charismatic leadership is an important issue for executives and managers. Given that charismatic leadership encompasses a variety of characteristics and complex entanglements, and that executives have limited time and energy, the most important and pressing issue is how to accurately identify the determinants of charismatic leadership and provide executives with references for effective charismatic leadership. To this end, this study began with a literature review of 22 scholars and experts who selected three key dimensions and 18 criteria for constructing charismatic leadership. A further 20 experts were invited to assess the correlations between the dimensions and the criteria, and a Fuzzy DEMATEL method was used to analyze the causal relationships between the dimensions and the criteria to identify the charismatic leadership determinants. The results of the study revealed that in terms of the dimensions, model shaping was the determining dimension for charismatic leadership, which influenced the other two dimensions; in terms of the criteria, role models and behavioral benchmarks, leadership behaviors of charisma, and emotionally intelligent were the determining criteria for charismatic leadership. Therefore, business executives and organizational leaders must be the first to set a good paradigm for their subordinates, be able to set an example and be selfless, be willing to take risks, be self-sacrificing, think creatively and be sympathetic to the behavior of their subordinates, and also focus on their self-image management, be willing to break out of the status quo and have good emotional management skills to build a sense of belonging in the organizational team. They should also be willing to break through problems and have good emotional management skills to build a sense of belonging to the organization.
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Short Papers

Paper Nr:	4
Title:	Bridging Corporate Social Responsibility and Individual Social Responsibility
Authors:	João S. Carvalho and Maria J. Faria
Abstract:	This study aimed to highlight the major trends in the relationships between corporate social responsibility (CSR) and Individual Social Responsibility (ISR). A systematic scoping review was undertaken to interpret and synthesise international research on this issue. The literature is still scarce and dispersed. From the scoping review emerged 11 articles that presented theoretical reflections and quantitative and qualitative approaches to the relationships between CSR and ISR. The main conclusions show that the literature is still scarce and dispersed but evolving into new models that try to explain the antecedents and consequences of the dynamic between CSR and ISR. The first measurement scale of ISR was created, and the research stream has the potential to grow up fast. Based on this review, it is presented a research agenda.
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Paper Nr:	6
Title:	Framework for IT Project Management During the COVID-19 Pandemic
Authors:	Victoria Marciano and Tevin Moodley
Abstract:	The COVID-19 pandemic has resulted in many restrictions enforced in our daily lives in an attempt to curb the virus and protect people. However, there are many scenarios in which working from home is not possible. The pandemic has also caused the distribution of misinformation, resulting in behaviours that affect the health and safety of employees. This paper aims to discuss the effect of COVID-19 on Information Technology (IT) Project Management and formulate a framework to assist organisations in effectively handling the management of IT projects during future similar events. Three areas of concern were identified from a literature review: The management of physical space to prevent the spread of disease and ensuring that service level agreements with clients contain clauses pertaining to provided services under extreme conditions such as a pandemic. Secondly, the people management aspect ensures employees are productive and placed in teams where they are most effective. Finally, the Agile approach used as a whole ensures that the organisation is always prepared to deal with change. This paper combines these concepts to provide a framework that tackles the problems that arise in the management of IT projects during COVID-19 and any future similar crises.
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Paper Nr:	19
Title:	Exploring Situational Leadership Using Critical Incident Technique in the Times of COVID-19
Authors:	Tshidi Machaba, Melani Prinsloo, Malcolm Ferguson and Pedro Ribeiro
Abstract:	The success of any project is a direct function of project leadership. Projects undertaken in a changing environment require project managers who can adapt their leadership style on demand. This study focuses on the impact of situational leadership in times of crisis, specifically during the period of the COVID-19 pandemic. The methodology used was the critical incident technique, carried out through interviews with project managers and the analysis of 128 incidents described by respondents. It was found that 78% of the project managers used more than one type of leadership and 82% used the directive type. Based on this research, it was possible to develop a set of rules for effective leadership in troubled situations.
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Paper Nr:	1
Title:	A Bibliometric Analysis for Stakeholder Management Focused on Energy and Sustainability
Authors:	Saul A. Esparza-Rodriguez, Gabino Garcia Tapia, Anibal E. Toscano-Hernández and Cesar G. Iriarte Rivas
Abstract:	The study of sustainability in scientific literature represents a subject of interest for many authors, institutions, and countries, being considered as a complex subject given the multiple interactions among internal and stakeholders. In that matter, this research presents a bibliometric analysis in relation to stakeholder management focused on the subjects related to energy and sustainability to understand the state of the art in the field using data from Scopus database of published papers including a period considering the years 1994 to 2021. Thus, the first stage presents an analysis of general productivity by year, country, source, author, and affiliation, using descriptive measures related to the number of research units published, concentration indexes, and descriptive comparisons at different levels. Then, the work includes the analysis of the most influential articles in terms of citation levels for countries, affiliations, and authors, ending with a comparative analysis that considers proportional data. As a matter of conclusion, the present research shows that the state of the art in relation to stakeholder management focused on energy and sustainability is guided by subjects such as sustainable development, decision making, environmental management, climate change, environmental impact, economic and social effects.
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