Thoughts on the regulation of European security markets
The study is based on a report made at the request of the European Union, by a committee headed by the author, enquiring into the regulation of security trading and the desirable directions in which such regulation should develop. The author begins by explaining the mandate and working method of the committee. He goes on to present the shortcomings of the current legislative and regulatory procedures. He explores the reasons of the weaknesses of the present system, and finally covers the proposals for reform that the committee made.
Results of the permeation of information technologies into the traditional sectors
Not only did the growth and profit prospects of the ‘new economy’ deteriorate suddenly in the first year of the new millennium, its very survival was put in question. There was talk, after the dot.com companies collapsed, of a ‘bubble’ economy, but beyond its pejorative content, that concept was defined as vaguely as the new economy itself. The dramatic fluctuations on the surface dispelled the uncritical euphoria about the information industries, which can only be welcomed. Much less welcome is the hasty burial of the new economy. While the recession has eliminated some overvalued dot.com companies and drastically devalued others, the spread of information services and the technological renewal of the whole economy are proceeding with great force. The digitalized economy is no longer confined to any sector or industry. The rules of the ‘e-economy’ begin to dominate even the oldest, most traditional industries, ranging from the oil industry to steel making and tourism. These rules differ strongly from the customary ones, although firms operating in this field cannot free themselves from the basic rules of the market. The author sets out to shed light on the new phenomena gaining ground in the old economy, which present a big challenge to theorists.
Maximizing yield against a VaR limit system: the casino effect
With the spread of value at risk (VaR), a demand has arisen for portfolio managers to use the new measure not just to analyse risk, but in the asset-manager limit systems that a portfolio manager has to observe from time to time. According to some of the literature and generally accepted theories, expressing the portfolio limits as value at risk will have several big advantages over the limit systems current so far, despite any calculation difficulties and inaccuracies involved. However, several problems arise in applying VaR in practice. The author disregards here the calculation and estimation errors of VaR. He shows that even if the method of VaR calculation is adequate and reflective of the real processes, applying VaR-based limit systems without caution could lead to an extreme investment strategy that no longer accorded with the intentions of the original investors.
Development of vertical integration by cooperatives in the agri-food economy
The main goal of the paper is to show the development of the vertical integration carried out by cooperatives in the agri-food economy, with a view to their economic substance in theory and practice. The study consists of two main parts. In the first part, coordination and integration in the agri-food economy is classified and the main incentives, types and forms of vertical integration are outlined. In the following section, the main roles and advantages of cooperatives in vertical integration are studied, mainly from the point of view of transaction-cost theory. In the second part, the theoretical basics are followed by discussion of the changers and development of the cooperative model. Finally, conclusions are drawn, from the theoretical and practical points of view, on the scope for vertical coordination by agricultural cooperatives in Hungary.
Vállalatgazdaságtan
The new horizons of management
The new challenges of globalization have arisen primarily from the effects of informatics, mobility, capital concentration and flows, and the acceleration of technical progress. These all require businesses to address new competitive advantages as well: applying the ‘glocal’ concept, enhancing the application of the building-block principle, utilizing the synergy of the ‘chain of immaterial resources’, and so on. However, attaining the advantages calls for more comprehensive, and at the same time, more detailed analysis of the corporate environment, above all consideration of the complex reciprocal influences and chains of effect between these factors. There are also alterations in the aims and organizational forms of businesses. A new element of operative management, for example, is the creation of internal competition or dual openness of R and D. However, the new challenges are flanked by new threats. For corporate management, one condition for averting these seems to be to increase the role of management teams and ‘tailor-made’ corporate systems.
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