The Credibility of Hong Kong's Link from the Perspective of Modern Financial Theory

Hong Kong's linked exchange rate system (LERS) has been in operation since 1983, during which time many other fixed exchange rate systems have succumbed to shocks and/or speculative attacks. This paper investigates how market participants assessed changes made to the LERS by using the tools of modern finance to extract information from financial asset prices about market expectations. These changes have been characterized as making the system less discretionary over time. We find that decreasing the discretionary element of the LERS led to an increase in credibility of the arrangement.     

CONTRACT ENFORCEMENT AND INTERNATIONAL TRADE

This paper derives estimating equations from a model where individuals consume two classes of goods, and the degree of contract enforcement affects the transaction cost of trade in the two classes of goods differentially. Empirically, using Rauch's classification, internationally traded goods are classified into differentiated goods and those possessing a reference price, with the presumption that contract enforcement issues are more important for the former. It is verified that the measures of contract enforcement affect the volume of trade in both types of goods, but the impact is larger for differentiated goods.     

Sigma Convergence versus Beta Convergence: Evidence from U.S. County-Level Data

In this paper, we outline (i) why σ-convergence may not accompany β-convergence, (ii) discuss evidence of β-convergence in the United States, and (iii) use U.S. county-level data containing over 3,000 cross-sectional observations to demonstrate that σ-convergence cannot be detected at the county level across the United States, or within the large majority of the individual U.S. states considered separately. Indeed, in many cases statistically significant σ- divergence is found.     

ACCRUAL MANAGEMENT TO MEET EARNINGS TARGETS: UK EVIDENCE PRE- AND POST-CADBURY

Central to both the Cadbury Committee’s initial remit and its subsequent recommendations is the view that director integrity and board effectiveness play key roles in ensuring the quality and reliability of published financial statements. Using a constant sample, this paper tests whether the association between board composition and earnings management activity differs between the pre- and post-Cadbury periods. Earnings management is measured by the use of income-increasing abnormal accruals when unmanaged earnings undershoot target earnings. Results provide evidence of accrual management to meet earnings targets in both periods. However, while we find no evidence of an association between the degree of accrual management and the composition of the board of directors in the pre-Cadbury period, results for the post-Cadbury period indicate less income-increasing accrual management to avoid earnings losses or earnings declines when the proportion of non-executive directors is high. These results are consistent with the view that appropriately structured boards are discharging their financial reporting duties more effectively post-Cadbury.     

Segment Disclosure Transparency and Internal Capital Market Efficiency: Evidence from SFAS No. 131

Using the adoption of SFAS 131, I examine the effect of segment disclosure transparency on internal capital market efficiency. SFAS 131 requires firms to define segments as internally viewed by managers, thereby improving the transparency of managerial actions in internal capital allocation. I find that diversified firms that improved segment disclosure transparency by changing segment definitions upon adoption of SFAS 131 experienced an improvement in capital allocation efficiency in internal capital markets after the adoption of SFAS 131. In addition, I find that the improvement in internal capital market efficiency was greater for firms that suffered more severe agency problems before the adoption of SFAS 131 and also for firms whose managers faced stronger incentives to improve efficiency after the adoption of SFAS 131. My results suggest that more transparent segment information can help resolve agency conflicts in the internal capital markets of diversified firms, thus improving investment efficiency.     

The Impact of Incentives and Communication Costs on Information Production and Use: Evidence from Bank Lending

In 2002 and 2003, many Chinese banks implemented reforms that delegated authority to individual loan officers. The change followed China's entrance into the WTO and offers a plausibly exogenous shock to loan officer incentives to produce information. We find that the bank's internal risk rating becomes a stronger predictor of loan interest rates and ex post outcomes after reform. When the loan officer and the branch president who approves the loan work together longer, the rating also becomes more strongly related to loan prices and outcomes. Our results highlight how incentives and communication costs affect information production and use.     

Weighing in on Fast Food Consumption: The Effects of Meal and Calorie Disclosures on Consumer Fast Food Evaluations

An analysis of consumers' Weblogs and two experiments address: (1) the differences in evaluations of menu items when consumers are versus are not provided with meal calorie information, and (2) their perception of calorie levels of different types of meals. Consumers provided their calorie estimates for specific meals offered by four different fast food restaurants, and an experiment assessed effects on consumer evaluations for calorie disclosures for actual items from two of these restaurants. Results show the complex relationship between consumer perceptions regarding the restaurants, the meals and the food items that can influence consumers' calorie estimates and evaluations of meals in restaurants.     

宏观调控中私权与公权博弈理论

公权与私权是法律意义上的公民权利与国家权力。公权与私权并不是相互安静地存在于自身的领域中，他们经常越过彼此的边界相互干预，二者为捍卫或拓展自己的领地不断博弈，在冲突中达到平衡。公权与私权理论只是论证宏观调控公权运行与私权保护的冲突与平衡的理论基点。     

论张中晓与《无梦楼随笔》——悲剧不仅是哀痛的，而且是光辉的

《无梦楼随笔》记录了张中晓在生命的最后十年关于哲学、政治、历史和人生的思考轨迹。作为一个独立的知识分子，他思考问题无一不以个人本位的维度为出发点，体现了他对个人价值和自由的高度重视。在极度困苦中，他坚持了知识分子的文化传统中最为可贵的一面，那就是，在逆境中也坚持对人类正义与良知的担当。面对人类现实的苦难和终极的不和谐，张中晓始终在探寻答案，在不屈不挠地和命运抗争。     

Use of 12 groups of foods in households differing in size,income and receipt of food stamps

Using data from the Nationwide Food Consumption Surrey, 1977–78, this study assessed the influence of household size and composition, household income, and eligibility/participation in the Food Stamp Programme (FSP) on the weekly money value of specified food groups used from the household food supply. Mean money values of foods by food groups were calculated for various sample partitions and proportions of total food value allocated to the 12 specified food groups were analysed using ordinary least squares regression. Results indicated that household size had a statistically significant impact on household food consumption patterns. As per capita household income increased, percentage allocations to high-cost meats and beverages generally increased while percentage allocations for the other 10 food groups decreased. The money value of food used per equivalent food energy need increased with decreasing household size and with increasing per capita household income. These relationships occurred for total food and for most of the specified food groups. Households that participated in the FSP used food with higher money value per-equivalent food energy need than did households who were eligible but did not participate in the FSP.