Market Response and Firms＇ Operating Performance Surrounding Actual Share Repurchases： Evidence from Hong Kong

Share repurchases have become a popular payout method to distribute cash flows to shareholders not only in the U.S. but also other countries. This study examines the firms＇ share price and operating performance surrounding actual share repurchases and the motivations behind share repurchases in the Hong Kong stock market. The empirical results show that, on average, firms engage in share repurchases when their stocks are under-valued andrepurchases are followed by abnormal positive returns. Among repurchases, the stock price performance varies across firms＇ size and market-to-book ratios. The market responds most favorably to repurchases that are made by small and ＂value＂ firms. This suggests that smaller firms are usually less analyzed and more likely to be undervalued; hence, the market reacts more favorably when they repurchase.     

Volatifity spillovers on precious metals markets and the G-7： The effects of the Asian crisis

This paper investigates the nature of volatility spillovers between stock returns and precious metals returns for the G-7 countries over the 1995-2006 period. We divide our sample into a number of sub periods, prior to, during and after the Asian crisis, with the objective to provide a wide analysis of the behaviour of these two markets taking into account the effects of the Asian crisis; We use EGARCH modelling, which takes into account whether bad news has the same impact on volatility as good news. The results show that there is no evidence of volatility persistence from stock returns to precious metals returns, but overall the results are significant in the other way around. In terms of volatility spillovers effects, the main findings are that there is evidence of volatility spill over running in a bidirectional way in almost all the cases. And finally, the results from asymmetric spillovers effects show that negative news has a stronger impact in these financial markets than positive news.     

Credit default swaps and stock prices： Further evidence of mean and volatility transmission using a GARCH-M model

This paper empirically investigates the association between the stock market and the credit default swap （CDS） market in terms of mean and volatility spillovers. The analysis uses daily observations from four stock markets and two European CDS indices, along with the error correction （EC） methodology and the generalized heteroskedasticity in mean （GARCH-M） modelling. The authors find that stock returns across European and US markets are negatively related to European CDS spread changes, that the CDS market seems to lead the stock market （implying that information contents coming from the firm＇s environment impacts first on the CDS market and then on the stock market）, and that CDS spreads volatility has a positive impact on stock market returns, both in mean and in volatility.     

Uncertainty and Corporate investment： An Empirical Analysis of China＇s Manufacturing Firms

With the measurement of volatility of a firm＇s stock returns uncertainty, the paper examines the investment behavior of China＇s manufacturing firms over the period of 1998-2003, and studies the relationship between uncertainty and corporate investment by using the 2SLS re, gression method. The empirical results indicate that there are significantly positive relationships between total uncertainty and investment, and market uncertainty and investment, but the relationship between firm-specific uncertainty and investment is not significantly positive.     

China＇s Stock Market： Inefficiencies and Institutional Implications

The dramatic movements of China＇s stock market in the past two and a half years have renewed debate among academics over the efficiency of China＇s stock market. The present paper tests the efficiency of China＇ s stock market. The realization of efficient markets requires the effective operation of a complete set of macro and micro mechanisms. However, such mechanisms are not only incomplete in China＇ s stock market, but are also ineffective because of the prevalence of institutional deficiencies.     

Business Cycle Asymmetry in China： Evidence from Friedman＇s Plucking Model

Friedman＇s plucking model of business fluctuations suggests that output cannot exceed an upper limit, but it is occasionally ＂plucked＂ downward below trends as a result of economic recessions. This paper investigates China＇s business fluetuations using quarterly real GDP data for the period 1978 2009. Our results show some evidence supporting Friedman＇s plucking model. We find that a ceiling effect of real output exists, and that negative asymmetric shocks significantly affect the transitory component, which captures the plucking downward behavior during the recession. The results also suggest that the basic asymmetric unobserved component model is not appropriate for directly modeling China＇s real output because the business＂ cycle is inaccurately measured, but it works quite well when considering a structural break in the second quarter of 1992. The results reveal that although China＇s economy strengthened in the second quarter of 2009, it is essential for China＇s government to take further positive and effective measures to maintain sustainable development of the economy.     

Effects of Turkish top managers＇ emotional and spiritual intelligences on their organizations＇ financial performance

This study proposed and tested a model that included the possible effects of Turkish top managers＇ spiritual and emotional intelligences on their organizations＇ financial performance. Two instruments, the short versions of ＂emotional quotient inventory （EQ-i：S）＂ and ＂integrated spiritual intelligence scale （ISIS）＂ were preferred to measure the two intelligences of top managers, who were selected from the organizations in the organized industrial zones of Istanbul. It was difficult to retrieve the financial data directly, and thus, the top managers were required to rate their organizations＇ financial performance relative to the competitors. The results were that some relationships were present among the factors of emotional and spiritual intelligences, but there wasn＇t a mixture （a combination） of these factors, and each of spiritual intelligence factors affected financial performance very weakly, whereas most factors of emotional intelligence didn＇t. The model showed that the two intelligences failed to affect financial performance positively altogether.     

Scaling risk and the square-root-of-time rule in the emerging markets： Evidence from the Chinese stock market

This paper examines the square-root-of-time rule that frequently used in volatility estimation to the Chinese stock market that comprises Shanghai and Shenzhen stock market. The Jarque-Bera test conclusively rejects normal distribution of both stock market returns, while the Hurst analysis indicates both stock market returns does not follow a random walk. Furthermore, the tests for volatility scaling indicate volatility of both stock market returns do not scale according to the square-root-of-time rule and lead to bias in risk estimation. Henceforth, the study urges more alternative methods in risk management that suitable for the emerging Chinese stock market.     

Viability and the Development of China＇s Capital Markets

The paper analyzes the abnormal phenomena in China‘s capital markets and provides a critical review of the existing hypotheses about the phenomena. The paper argues that thelack of “viability” among most of the listed SOEs is the primary cause of the problems in China‘s capital markets. The paper also applies a consistent framework to analyze the relationship among viability, SOEs and the capital markets, and makes some policy proposals for improving China‘s capital markets.     

The spirit of capitalism as key to solving for an explicit Ramsey saddle path

This paper presents a version of the Ramsey-Cass-Koopmans model （1965） with an explicit equation for the saddle path, starting from a utility function describing preferences for consumption and savings. Such a maximizing criterion including the flow of saving formalizes the concept of Max Weber＇s spirit of capitalism and makes the model similar to the one of ZOU （1994）, except that his specification includes the capital stock instead. Not only does the presented model preserve the long-run implications on growth of countries, it also features an interesting application of the Pontryagin＇s Maximum principle, with further interpretation and results to analyze.     

Chinese Offshore RMB Currency and Bond Markets： The Role of Hong Kong

This paper discusses the role of Hong Kong in China’s grand scheme to build up the RMB as a global reserve currency.We highlight the economic importance of Hong Kong to China in terms of channeling foreign direct investment into China,some of which,in the future,will be denominated in the RMB.We discuss the development of China’s RMB currency swap and deposit markets in Hong Kong.These offshore markets enable the RMB to trade freely, setting the stage for the RMB to become fully convertible and allowing market forces to play a role in pricing the value of the RMB,and help in the development of the RMB-denominated bond(or dim sum bond)market in Hong Kong.Finally,we present evidence of the phenomenal growth of the dim sum bond market in Hong Kong,which can further enhance and strengthen the use of the RMB outside China.     

Linkage between stock volatility and corporate bond yield spread in Thailand

This paper studies the relationship between stock volatility and corporate bond yield spread in Thai market by using Campbell and Taksler （2003） panel data regression approach. The results show that the equity volatility＇s variables, such as finn＇s idiosyncratic risk, market risk, individual stock return and market return, are matter to explain the corporate bond yield spread. Surprisingly, these variables could explain the spread better than credit rating variables. Furthermore, during bear market period, only corporate bond yield spreads in financial finns are increasing significantly. Some of the deterministic yield spread parameters such as level and slope of interest rate also alter from bull market period.     

A Late Comer＇s Internationalization Strategy for Chinese Firms： A Theoretical Study

The purpose of the paper is to discuss the internationalization strategy of Chinese finns from a latecomer＇s perspective. First, this paper reviews five existing conceptual frameworks of foreign market entry mode for the internationalization of finns from developed countries. Then, this paper integrates the different factors considering in existing frameworks to a comprehensive framework. With this modified framework and Chinese finns＇ unique characteristics, some propositions are presented about the path and features of Chinese finns＇ internationalization based on the comprehensive framework discussed from a latecomer＇s perspective. This paper also discusses that the future studies on Chinese finns＇ internationalization strategy should attempt to increase the congruence between the theoretical and operational level, to clarify concepts and variables of the frameworks and the relationships among those variables.     

Why Are Chinese Exports Not So Special？

Applying a commonly used index for export sophistication in a cross-country study, Rodrik finds that the technological content of Chinese exports over the past decade has been so high that it cannot be explained simply by the economic fundamentals of a low-income country abundant with unskilled labor. Question has been raised for the empirical robustness of the index. I am also doubtful with Rodrik＇ s analysis but develop my argument from a different perspective. This paper briefly reviews Rodrik＇s methodology and identifies other factors his empirical results potentially hinge on. Based on this, it elaborates on China＇ s unique processing trade regime, the uneven distribution of its exports across Chinese regions and the limitation of HS codes in terms of identifying differentiated products, in an attempt to show that these factors also contribute to higher estimations of China＇s export sophistication level. Finally, it organizes trade data to reveal the trade patterns that are indeed consistent with the country＇s comparative advantage.     

China＇s Inbound Tourist Revenue and Beijing Olympic Games 2008

During the process of economic globalization, China＇s inbound tourism has developed strongly. The present paper deals with one of the core issues of the international tourism industry： inbound tourist revenue. With the aid of conventional theories and the use of empirical tests, our study identifies some decisive factors that have influenced China＇s inbound tourist revenue through an analysis of the global and local conditions at macro and micro levels. The findings were then linked to the Olympic Games, the mega event having impacted international tourism. The findings were also linked to further.discussions and suggestions for the interactions between the Beijing Olympic Games 2008 and China＇s inbound tourism.     

Does China have Inflationary Effects on the USA and Japan？

With China＇s share in global trade increasing rapidly, some argued in 2002-2003 that China was exporting deflation to other countries as it was dumping cheap goods in mature markets. Later, others argued that China was causing sharp increases in global prices. This paper uses several econometric techniques to assess the extent of the link between inflation rates between China and the USA and Japan. Only limited empirical evidence at the aggregate level is found for consumer price inflation in China leading to price changes in the USA and Japan. However, there is some evidence that inflation in the USA has an impact on Chinese inflation. The results seem consistent with the Federal Reserve and the Bank of Japan being concerned about inflation and, hence, adjusting policy such that inflation shocks have no significant effect on overall inflation. Recent Chinese price rises are unlikely to have a material effect on the USA or Japan.     

China＇s Labor Transition and the Future of China＇s Rural Wages and Employment

This paper contributes to the assessment of China＇s rural labor markets. According to our data, the increase in off-farm employment that China experienced during the 1980s and 1990s continued during the 2000s. Our analysis shows that migration has become the most prevalent off-farm activity, although the destination of migrants is shifting from outside of one＇s province to destinations closer to home. The present paperfinds that large shares of male and female individuals, especially those under 40 years, are working off the farm. These findings represent an important contribution to the labor economics field. First, the results of the present paper reveal that the labor transition from the agricultural sector to the non-agricultural sector for key segments of China＇s rural labor force is nearly complete. Second, although a large share of China ＂s rural labor force work in agriculture, most of these workers are older men and women （and likely would not be willing to take low-wage, labor-intensive jobs）. Third, the rising unskilled wage rate in China is partially a result of the tightening of the labor force in the young age cohorts. Finally, due to factors associated with the one child policy and other demographic transition forces, successive age cohorts will continue to fall in absolute number in the coming decade. Assuming China＇s growth continues, we expect to see further wage increases since it will take higher wages to coax more workers to work off the farm.     

Statistical Model to Forecast the Bangladesh＇s GDP

This paper deals with developing a statistical model, which could accurately forecast Bangladesh＇s GDP. We use regressive analysis with explanatory variables, principal component and lagged variables with other explanatory variables. We find that in case of regression analysis using explanatory variables and principal component, semi logarithmic model and linear model give better results respectively and their forecasting ability is also acceptable. On an average regression analysis with lagged variables i.e. Lagged model is the most accurate model to forecast the Bangladesh＇s GDP, and this model also gives good forecasting performance.     

Analysis on the effect of economic interaction＇s pulse from the Sino-US trade perspective

In an open economy, the economic concussion in sole country will transmit to other countries which make the international economic concussion play an important role in the formation of economic fluctuation. Both America and China, as two prominent economy units, have a great impact not only on the regional economy but also international economy. This paper constructs a shock-response model for China-America bilateral trade relations by using of impulse-response function of the vector auto-regressive model. The fluctuation of mutual economic growth caused by the shock of bilateral trade variances is empirically analyzed. Further more; the paper also uses variance decomposition technology to estimate its contribution-rate. The empirical analysis result shows that American economy has a notable impact on China, and Chinese economy will depend on American economy more and more.     

Emerging Geography of Creativity and Labor Productivity Effects in China

The paper presents an alternative approach to explain why regional productivity is different across regions by utilizing the creative class approach in China. First, we analyze the extent of spatial agglomeration of the creative class across regions in China. Second, we develop a model with spatial externalities to investigate how the concentration of the creative class can promote regional productivity. Our analysis confirms the importance of spatial agglomeration of the creative class in stimulating regional productivity. The results also imply that regional productivity is greater in markets with higher levels of innovation, capital stock, manufacturing and urbanization. In light of the results of our analysis, we discuss a number of policy implications.