A bibliometric study of financial risk literature: a historic approach

This study probes into the development of financial risk literatures through the perspective of bibliometrics. The research samples were collected from the relevant international financial business bibliographic databases. A total of 2727 entries in a span of 29 years from 1970 to 2009 were collected and the results are summarized as follows: (1) the financial risk literatures under influence of the financial turmoil in Asia achieved substantial growth from 1997 to 1998 and an exponential growth curve during the global financial turmoil from 2007 to 2009; (2) the literatures were mainly journals and articles written in English; (3) the United States ranked first in sector productivity; (4) the author productivity of the financial risks was consistent with the Lotka's Law and (5) the document types of the financial risk literatures were mostly dissertation papers on economics and business.     

Optimum choice of invoice currency with correlated exchange rates†

In this paper, we revisit optimal choice of invoice currency for an exporting firm in the face of exchange rate uncertainty. We demonstrate that when a vehicle currency is available, the optimum choice depends not only on the volatility of the exchange rates but the covariance between them as well. In particular, we show that when the exchange rates between the exporter and importer currencies on the one hand, and the exporter and the vehicle currency on the other, are positively correlated, vehicle currency becomes an attractive choice. The intuition underlying this novel outcome is that this regime dampens profit variability for the exporter.     

Applying a New Model of Customer Value on International Air Passengers' Market in Taiwan

This paper proposes a new model to discover customer value of air passengers by using data mining technologies. The results of this research can be applied in database marketing systems. The procedure applies See5/C5.0 (RuleQuest Research Pty Ltd, St Ives, New South Wales, Australia) decision tree; transaction records; Frequency, Price Discount, Destination and No‐Show (FPDN model; Recency, Frequency and Monetary model based) model variables; and socio‐economic variables to create decision rules for airline business. An empirical case of air passengers' market in Taiwan is implemented for the identification of this procedure and the Frequency, Price Discount, Destination and No‐Show model. Copyright © 2011 John Wiley & Sons, Ltd.     

From original equipment manufacturing to branding: entrepreneurship,strategic leadership,and Taiwan’s firm transformation

This paper investigates firm transformation from original equipment manufacturing (OEM) to original brand manufacturing (OBM) based on variant experiences of Taiwan’s top global brands. Taking the competitive advantage of practicing OEM for multinational corporations (MNCs), latecomer firms can generate capital and accumulate capabilities by engaging with the global production network. Rarely does every firm transform into a global enterprise. We propose that only entrepreneurs with strategic leadership competence, which serves to manage a delicate balance between stability and change in a firm, are capable to facilitate firm transformation from OEM to a global enterprise practicing OBM. We provide an analytical framework that combines the research fields of entrepreneurship, strategic management, and leadership to analyze firm growth and firm transformation of Taiwanese firms. In light of possible branding dilemma when straddling dual-track businesses, successful transforming firms can alleviate this problem either by separating their OBM units from their OEM units or by creating a symbiotic relationship with their MNC customers. How Taiwanese firms first took advantage of initiating OEM to create capital and capabilities and later transformed into OBM provide useful experiences for other latecomer firms.     

Examining human resource management outsourcing in Hong Kong

This study explored the state of human resource (HR) outsourcing in the Asian context, a particularly important subject given its rapid proliferation in Europe and North America, the inconsistent and limited evidence from prior research, and its strategic importance to the human resource management (HRM) function. Drawing on both quantitative and qualitative data and the transaction cost, resource-based, and institutional perspectives, we found that although respondents were generally favourable towards outsourcing, that in practice its adoption and diffusion were in a nascent stage in Hong Kong. Decisions to outsource were, by and large, incremental and experimental and influenced by a range of contextual factors (e.g., availability of in-house expertise, skills and creativity, strategic priorities, legislation (coercive), availability of external service providers, and industry and peer (mimetic) influence). Despite considerable pressure to cut costs, instead of outsourcing in the first instance, firms placed greater emphasis on maximising internal resource utilization (insourcing). Implications for practice and suggestions for future research are also provided.     

BILATERAL RENT‐SEEKING AND GROWTH OF FDI INFLOW IN CHINA: THEORY AND EVIDENCE

This research proposes a new theory called bilateral rent‐seeking to explain the dramatic growth of foreign direct investment (FDI) inflow into China over the past several decades. We construct a Nash bargaining model to illustrate the relevance of how the reciprocal relationship between the local state and foreign investors leads to the greater incentives for the latter to invest in the local market, thus resulting into the huge FDI inflows into the domestic market in China in the past several decades. The empirically evidence presented in the end is broadly consistent with the theories proposed in this paper (JEL D21, D72, L52)     

Influences of price,service convenience,and social servicescape on post-purchase process of capsule hotels

A capsule hotel is a new affordable type of hotel that attracts backpackers and young tourists. This study proposes a research model to verify the influences of perceived price, service convenience, and social servicescape on functional and experiential values, and then on repurchase intention and electronic Word-of-Mouth (eWOM). Research results show that tourists’ perceived price and service convenience affect functional value. Service convenience and social servicescape influence experiential value. Functional value and experiential value encourage guests to repurchase capsule hotels and share positive eWOM. This study aims to inspire research interest in capsule hotels and to provide practical implications for hotel operators.     

FISCAL EXPENDITURE AND INDUSTRIAL LAND PRICE IN CHINA: THEORY AND EVIDENCE

This paper aims to discover the mechanism behind the positive correlation between local fiscal expenditure and industrial land price in China, a stylized fact discovered by bivariate and regression analyses. The model shows that if the positive externality of government expenditure on growth is sufficiently high, the local government has an incentive to increase public spending in exchange for the reduced demand for industrial land by charging a higher markup and driving up the industrial land price. Therefore, we observe a positive correlation between the local fiscal expenditure and industrial land price. (JEL D42, H72, R51)     

AN ANALYTICAL MODEL OF THE RELATIONSHIP BETWEEN MATURITY AND BONDS RISK DIFFERENTIALS

This paper extends previous analyses of bond risk differentials by relaxing the key assumption of a constant probability of firm survival. Under the less restrictive assumption that firm income is stationary and independent over time, it is shown that risk differential clearly varies with maturity even with a flat term structure. Because the payoff possibilities of multi-period bonds are interdependent even though income in each period is independent, risk differentials must depend on maturity, even if term structure is flat. This conclusion is more compatible with empirical findings than were conclusions of previous analyses.     

Tax Timing Options on Futures Contracts and the 1981 Economic Recovery Act

This study utilizes foreign currency futures contracts to evaluate the tax timing options created by the 1981 Economic Recovery Act. Our findings suggest that the act had an impact on contracts with less than six months to maturity and that the marginal trader in those contracts is a long-position holder. Similarly, the results suggest that the option of tax year selection for foreign currency futures in valuable.