On top responsiveness and strict core stability

Alcalde and Revilla [Journal of Mathematical Economics 40 (2004) 869–887] introduce a top responsiveness condition on players’ preferences in hedonic games and show that it guarantees the existence of a core stable partition. In the present note we strengthen this observation by proving that under top responsiveness even the strict core is non-empty.     

地勘单位投资体制改革与机制创新及其管理研究

地勘单位投资体制改革与机制创新是关系到地勘单位发展的重要内容,体制与机制的障碍目前是制约地勘单位投资活动有效运行的重要环节。作者认为地勘单位投资体制与机制改革的关键是事业体制向企业体制彻底转变,企业经营模式以及投资主体的多元化的投资制衡结构的建立,并在此基础上树立正确的投资理念,把握正确的投资方向,做好地勘投资管理基础工作。     

VENTURE CAPITAL AND IPO LOCKUP EXPIRATION: AN EMPIRICAL ANALYSIS

Most initial public offerings (IPOs) feature “lockup” agreements, which bar insiders from selling the stock for a set period following the IPO, usually 180 days. We examine stock price behavior in the period surrounding lockup expiration for a sample of 2,529 firms from 1988 to 1997. We find that lockup expirations are, on average, associated with significant and negative abnormal returns, but the losses are concentrated in firms with venture capital backing. For the venture‐capital‐backed group, the largest losses occur for high‐tech firms and firms with the greatest post‐IPO stock price increases, the largest relative trading volume in the period surrounding expiration, and the highest quality underwriters. JEL classification: G14, G24     

Human resources planning on terrorism and crises in the Asia Pacific region: Cross‐national challenge,reconsideration, and proposition from western experiences

Since the 9/11 attacks in the United States (2001) and the two bombing events in Bali (2002, 2005), there has been renewed interest in emergency prevention policies in many organizations around the world. Functional terrorism preparedness requires changes in organizational thinking about external environmental threats. This shift in organizational thinking could be led by human resource departments. In order to achieve this goal, HR departments must redefine their role in terms of crisis management, and then four key planning measures for insuring postemergency operations should be observed. Using system dynamics (SD) methodology, this article examines the causes of states in which organizations operate after terrorist attacks. Based on the qualitative analytic approach of causal loops, this article explores the major challenges for HR development prompted by terrorism. Specifically, we focus on changes both to organizational communication and to workforce planning and succession. These activities are a tremendous challenge immediately following a disaster. A functional HR plan must include elements for proactive alertness, the ability to dispatch inventory, evacuation plans, and record preservation coupled with dissemination to employees and explicit employee training and cross‐cultural management. © 2008 Wiley Periodicals, Inc.     

A welfare analysis of the site value taxation model

This study is a short-run version of Brueckner's (long-run) analysis of graded tax systems. Brueckner assumes a long-run market equilibrium that allows for changes in the market value of the land with a zero profit condition. It is our contention that it is more realistic to solve for the short-run conditions with fixed value of land. Under these conditions, we find that if land is relatively inexpensive, the graded tax system leads to superiority in terms ofk (capital improvement per unit of land),Q (initial housing output), andCS (Consumers' Surplus). With steeper inverse demand curves and greater marginal product and initial housing output, the land tax has a more negative impact on profit with graded tax systems.     

Hedges or safe havens—revisit the role of gold and USD against stock: a multivariate extended skew-t copula approach

Our paper concerns the question of whether there exist hedge assets during extreme market conditions, which has become increasingly important since the recent financial crisis. This paper develops a novel extended skew-t copula model to examine the effectiveness of gold and US dollar (USD) as hedge or safe haven asset against stock prices for seven developed markets over the 2000–2013 period. Our results indicate the existence of skewness and heavy/thin tails in the distributions of all three types of assets in most of the developed markets, lending support to the employment of flexible distributions to evaluate the tail dependences among assets. We find that USD is preferred to gold as a hedge asset during normal market conditions, while both assets can serve as safe haven assets for most countries when stock markets crash. Our simultaneous analysis of the three assets advises against a joint hedge strategy of gold and USD due to the high tail dependence between them during extreme market conditions. This result highlights the importance of simultaneous modelling of multiple assets in financial risk analysis.     

Real and Accrual‐Based Earnings Management in the Pre‐ and Post‐IFRS Periods: Evidence from China

The purpose of this study is to investigate the prevalence of both accrual‐ and activities‐based earnings management for Chinese A‐share firms surrounding the adoption of substantially IFRS‐convergent accounting standards. Since 2007, all listed A‐share firms in China have been required to comply with a new set of accounting standards that have substantially conformed to IFRS. The new reform also produced a set of new auditing standards and internal control reporting requirements. Based on a sample of 4,050 firm‐year observations from 2002 to 2011, we find that Chinese firms in the post‐IFRS period (2007–2011) are less likely to engage in accrual‐based earnings management. The magnitude of discretionary accruals also declines after IFRS adoption. In response, we see firms turning to real activities manipulation as a substitute for upward earnings management. The reduction in accrual‐based earnings management could stem from higher quality accounting standards associated with IFRS adoption and/or concurrent changes in the governance regimes introduced with the IFRS mandate. A further analysis, however, indicates that the benefits of IFRS adoption in curbing upward accrual‐based earnings manipulation are not evenly distributed across firms. Specifically, the benefit diminishes for firms that are controlled by Chinese central or local governments, are located in less developed regions, and that have weak financial performance and therefore subject to delisting status. We also find that the benefit is less pronounced for manufacturing firms than for their non‐manufacturing counterparts.     

Price discovery in the options markets: An application of put‐call parity

This study investigates the relative rate of price discovery in Taiwan between index futures and index options, proposing a put‐call parity (PCP) approach to recover the spot index embedded in the options premiums. The PCP approach offers the benefits of reducing model risk and alleviating the burden of volatility estimation. Consistent with the trading‐cost hypothesis, a dominant tendency is found for futures and a subordinate but non‐trivial price discovery from options. The relative weight of options price discovery is sensitive to the methodology employed as the means of inferring the option‐implicit spot price. The empirical evidence suggests that the information contained in the PCP‐implied spot encompasses that provided by the Black‐Scholes‐implied spot. © 2008 Wiley Periodicals, Inc. Jrl Fut Mark 28:354– 375, 2008     

Asymmetric effects of corporate sustainability strategy on value creation among global automotive firms: A dynamic panel quantile regression approach

This study explores the asymmetric effects of corporate sustainability strategy on firm value at different conditioning quantiles by performing a dynamic panel quantile regression analysis on global automotive firms from 2011 to 2017. Further, this study measures the distinct effects of positive and negative corporate sustainability strategies on firm value, which has remained unconsidered as yet. The findings suggest that low-value and midvalue firms respond more strongly to positive and negative corporate sustainability strategies than high-value firms. This implies that for low-value and midvalue corporations that are in a growth phase, an investment in positive corporate sustainability strategies is essential to increase firm value by enhancing public perception of their efforts. Therefore, positive corporate sustainability strategy contributes substantially to future growth. Conversely, positive corporate sustainability strategy may not be a priority in increasing firm value for high-value corporations, because these strategies do not enhance the public's discernment of their efforts in ethics management and hence do not contribute to a future increase in value. Meanwhile, engagement in negative corporate sustainability strategy worsens firm value in all quantiles, although the effect is somewhat weaker for high-value firms. Nevertheless, however high valued and well established a firm is, it is not immune to crisis.