Machine repairing models for production systems

In this paper we consider manufacturing systems of m identical unreliable machines producing one type of product. The operating time of each machine is exponentially distributed. The repairing process of a machine requires more than one phase. In each phase, the repair time is exponentially distributed and more than one operator may be required for fixing a broken machine. Here we consider two models of manufacturing systems. In the first model, there are r operators assigned in one server to repair a broken machine. The repairing rate in each phase depends on the number of operators there. This is a generalized model discussed in Buzacott and Shanthikumar [11]. We then consider a two-phase repairing model. Two groups of operators are assigned in the two phases. Each operator can handle one broken machine in each phase individually. This model is a generalization of Eben–Chaime's model [8]. Average profits are derived for both models and can be optimized by suitable allocation of the number of machines and operators in the systems.     

Nonlinear Models in Corporate Finance Research: Review,Critique, and Extensions

Since the work of Morck, Shleifer and Vishny (1988), nonlinear model specification has gained more attention in corporate finance research. In this paper, we provide a detailed review of the previous studies that have examined nonlinear relations in corporate finance. We review the theory and evidence in these studies and discuss the advantages and disadvantages of the various methodologies used to detect nonlinearity. We also suggest two possible methodological extensions, which we apply in the empirical analysis of R&D investment and firm value.     

Rights Issues in the Chinese Stock Market: Evidence of Earnings Management

Using 665 rights offerings of Chinese firms, we demonstrate positive but diminishing price effects of successive announcements at the board meeting, the shareholders' meeting, the prospectus release date, and the ex‐rights date, but negative abnormal returns before the ex‐rights date. Public investors value the participation from shareholders of state and legal‐person shares in the rights offerings, which seem to be linked to the future firm performance. The results overall supports the hypothesis that Chinese company earnings are considerably manipulated in the rights issue process.     

Stochastic dominance and behavior towards risk: The market for Internet stocks

Internet stocks registered large gains in the late 1990s, followed by large losses from early 2000. Using stochastic dominance theory, we infer how investor risk preferences have changed over this cycle, and relate our findings to utility theory and behavioral finance. Our major findings are as follows. First, risk averters and risk seekers show a distinct difference in preference for Internet versus “old economy” stocks. This difference is most evident during the bull market period (1998–2000) where Internet stocks stochastically dominate old economy stocks for risk seekers but not risk averters. In the bear market, risk averters show an increased preference for old economy stocks, while risk seekers show a reduced preference for Internet stocks. These results are inconsistent with prospect theory and indicate that investors exhibit reverse S-shaped utility functions.     

Effects of Executive Share Option Plans on Shareholder Wealth and Firm Performance: The Singapore Evidence

The main purpose of our paper is to study the institutional nature and characteristics of executive share option plans (ESOPs) in Singapore, a fast-growing economy and an important investment location in Asia. Our study provides an interesting comparison between the characteristics of ESOPs in Singapore and those in the US. Our paper also investigates the short-term market reaction to ESOP announcements and the long-run stock and operating performance of the sample firms following the adoption of the ESOPs. Results indicate weak evidence of a positive abnormal return on the days surrounding the announcement of the ESOPs. However, there is no evidence of long-term superior stock and operating performance for the ESOP firms relative to benchmarks. The lack of significant incentive effects for the sample firms reflects mainly the unique regulatory environment in Singapore.     

Private Placement of Common Equity and Earnings Expectations

We examine earnings forecast revisions by analysts subsequent to the announcement of private equity placements. Results show that analysts make significant upward revisions to their forecasts for current-year earnings. Furthermore, these forecast revisions are significantly related to announcement-period abnormal returns, but not to the risk changes accompanying the equity placement. These findings are consistent with the information hypothesis, which suggests that private equity placements convey favorable information about future earnings.     

Nurturing All-round Engineering and Product Designers

This paper discusses how a curriculum should be revised to nurture all-round engineering and product designers to meet new social and industrial needs. It first reviews the limitations of the current engineering and product design education, and argues that it is biased either towards the acquisition of engineering and technological knowledge and skills but not critical thinking skills; or towards the nurturing of so-called creative thinking, while ignoring the conducting of in-depth investigations. This paper uses Hong Kong as a case study to further identify new social and industrial needs. To meet these needs, it proposes the consideration of `Eight Cs' for the engineering and product design curriculum, that is: Competent, Comprehensive, Compulsory, Critical, Creative, Curious, Collaborative, and Continuous. This revised version was published online in July 2006 with corrections to the Cover Date.     

Free Float And Market Liquidity: A Study Of Hong Kong Government Intervention

The August 1998 Hong Kong government intervention in the stock market offers a natural experiment for studying the relation between a free float and market liquidity, where a free float is the portion of listed share capital that is freely traded on the market. Our findings show that, relative to a group of control stocks, there was an increase in the price effects of trades for the 33 Hang Seng Index component stocks that were bought by the government. On the other hand, there was no clear cross‐sectional relation between the change in the price effect and the magnitude of government holdings or the decrease in the free float.     

The Hong Kong Government’s Strategy for Promoting Home Ownership — An Approach to Reducing the Decommodifying Effects of Public Housing Services

The Hong Kong Government is a well-known believer in laissez faire values and capitalism. However, it provides massive public housing programmes. In order to reduce the adverse effects of the public housing programmes on capitalism, it has tried to promote the recommodification of public housing by encouraging and assisting public housing tenants to become home owners. The aim of this paper is to study the Hong Kong Government’s measures for promoting home ownership. It is argued that these measures are not very effective in reducing the decommodifying effects of the public housing services. Despite the fact that these measures aim to reduce people’s dependence on the government and to help them to re-establish their relation with the private market, they are paradoxically also a kind of decommodification — people can enjoy some benefits independently of how they perform in the private market. Hence, it can be said that the government’s measures for promoting home ownership serve more to change the form than to reduce the degree of the decommodification of the public housing services. Le gouvernement de Hong Kong est un partisan bien connu du laissez-faire et du capitalisme. Il fournit néanmoins des programmes massifs de logement public. Afin de réuire les effets adverses que les programmes de logement public ont sur le capitalisme, il a essayé de promouvoir la recommercialisation du logement public en encourageant et en aidant les locataires du logement public à devenir propriétaires. Le but de cet article est d’étudier les mesures que le gouvernement de Hong Kong a prises afin de promouvoir l’accès à la propriété. Cet essai soutient que ces mesures ne sont pas très efficaces pour réduire les effets de décommercialisation qu’ont les services de logement public. Bien qu’elles aient pour but de réduire la dépendance des habitants du gouvernement et de les aider à rétablir leur rapport avec le marché privé, elles sont aussi, paradoxicalement, une espèce de décommercialisation — dont les gens peuvent bénéficier indépendamment de leur performance sur le marché privé. On peut donc dire que les mesures prises par le gouvernement pour promouvoir l'accès à la propriété servent plus à changer la forme de la décommercialisation des services de logement public qu’à en réduire leur niveau.