From a labour-surplus to a labour-scarce economy: challenges to human resource management in Hong Kong

In this paper, the acute problems faced by the market economy of Hong Kong are assessed. These are seen to arise from the shift in the labour market from labour surplus to labour scarcity. The major geo-political role of Hong Kong both in servicing the extendal capital requirements of South China and as a key state within the conurbation of ‘little dragons’ is also examined. The consequences of this structural shift in terms of the challenges being mounted to HRM both strategically and functionally are also evaluated and are interpreted as an evolutionary process.     

A PRIMER ON MATHEMATICAL MODELLING IN ECONOMICS

Abstract The Commission on Graduate Education in Economics had raised several concerns regarding the role of mathematics in graduate training in economics ( Krueger, 1991 ; Colander, 1998, 2005 ). This paper undertakes a detailed scrutiny of the notion of a utility function to motivate and describe the common patterns across mathematical concepts and results that are used by economists. In the process one arrives at a classification of mathematical terms which is used to state mathematical results in economics. The usefulness of the classification scheme is illustrated with the help of a discussion of Arrow's impossibility theorem. Common knowledge of the patterns in mathematical concepts and results could be effective in enhancing communication between students, teachers and researchers specializing in different sub‐fields of economics.     

The role of international tourist perceptions of brand equity and travel intention in culinary tourism

Brand equity is becoming increasingly important, and research has started to examine the brand equity of tourist destinations. However, little research has studied the inter-relationship between the dimensions of brand equity in culinary tourism. The purpose of this study is to examine the roles of the three aspects of brand equity in culinary tourism. The Sobel test in line with Baron and Kenny's procedure was used to test the hypotheses in a sample of 407 international tourists from 10 regions. The empirical evidence supports the process-oriented view and indicates that brand loyalty could mediate the effects of brand image and perceived quality on travel intention. The findings of this study contribute to the theoretical development of a conceptual model and fill the gap in the literature.     

Evaluating the optimal occupancy rate,operational efficiency,and profitability efficiency of Taiwan's international tourist hotels

This study uses the data envelopment analysis model to measure the optimal occupancy rate, operational, and profitability efficiency of Taiwan's international tourist hotels in a single implementation. The efficiencies calculated show that a high performance in operational efficiency does not necessarily ensure high profitability. Through optimal occupancy rate analysis, this study shows that increasing sales is not the best way to improve performance. For some hotels, it is actually better to decrease the occupancy rate in order to improve operational and profitability efficiencies. Additionally, evidence is presented that shows that inconsistent occupancy rate targets can be remedied through an empirical model.     

The different systems for tourist hotels efficiency estimation in Taiwan

This study adopts the data envelopment analysis (DEA), including the Banker, Charnes, and Cooper and system DEA estimation, to investigate the operating efficiency of Taiwanese Hotels under different efficient frontier systems. The results are summarised as follows: (1) the efficiency of chain-operated hotels are higher than the efficiency of independent-operated hotels; (2) if different frontier systems are assessed by the same frontier, then it will cause a wrong judgement in efficient reference sets; (3) if the hotels are treated as independent samples, then some inefficient hotels are mistaken as being efficient; and (4) the independent type take the chain type as efficient reference sets.     

Jump risk of Presidential election: evidence from Taiwan stock and foreign exchange markets

This article employs jump-diffusion models, including the ARJI model and the GARCH-jump model, to examine jump intensity and volatility of Taiwan stock and foreign exchange markets during a Presidential election period. The empirical results indicate that, firstly, the ARJI model fits data better than the GARCH-jump model. Secondly, the Presidential election events enhance the jump intensity of both markets and the jump-induced variance is higher than diffusion-induced variance. It reveals the importance of the discrete jump process during a Presidential election period, and might provide some implications for option pricing or hedging strategy. Due to the intervention of the Central Bank in the foreign exchange market during a Presidential election period, the results indicate that jump intensity and volatility of jump size are more moderate.     

A Companion For NPV: The Generalized Relative Rate of Return

We show how to determine a unique rate, for a particular cash flow stream, that is used only whenever a project demands outside resources to compound the rates of the existing term structure precisely at those times. The net present value of the cash flow stream when discounted with the thus-modified term structure becomes zero. We therefore determine a vector of rates that belongs to the induced space of internal rates of return for that cash flow stream. The rate is applicable under discrete stochastic interest rate representations and provides maximum loan rates that may be contracted only when needed thus keeping a project financially autonomous. (Any investments required may be fully repaid by the project's own cash outflows).     

The reputation effect of venture capital

The main purpose of this paper to examine how the reputation effect of venture capital (VC) is associated with the initial return and ex-post performance of its invested IPO firms. In this paper, we use 267 Taiwanese IPO firms in 1994–2007 periods and find that VC-backed firms outperform non-VC-backed firms in terms of ex-post equity market-to-book ratio, ROA and R&D expenditure ratio. For those VC-backed IPOs, reputable VC-backed firms outperform mediocre VC-backed ones. Moreover, among the four proxies of VC reputation, the market share with respect to total IPO proceeds is most promising in explaining IPO firms’ ex-post performance. The overall result confirms the reputation effect associated with VC.     

Target redemption notes

The target redemption note is an index‐linked note that provides a guaranteed sum of coupons (target cap) with the possibility of early termination. In a typical structure, the coupons are calculated based on an inverse floating, London Interbank Offered Rate/Euro Interbank Offered Rate (LIBOR/Euribor) formula. Once the accumulated amount of coupons has reached the prespecified target cap, the note will be terminated with final payment of the par. The knock‐out criterion depends on a path‐dependent state variable defined by the running accumulated coupon sum. In some simplified cases, we manage to obtain a closed form valuation formula for the note value. We propose several numerical schemes for pricing the note under the one‐factor and two‐factor short rate models. Pricing behaviors of the target redemption note are also explored. © 2007 Wiley Periodicals, Inc. Jrl Fut Mark 27:535–554, 2007     

Innovation policy for developing Taiwan's competitive advantages

Innovation is a prerequisite for every nation and business facing the emergence of a knowledge–based economy and globalization. For small and medium firms in developing countries with limited resources and relatively low national advantage innovation is much more difficult. Government innovation policy, stemming from three sides – supply, demand, and environment, has been shown to play a major role in assisting firms to conduct innovation activities, especially in developing countries. This paper first summarizes recent tends and issues relevant to Taiwan's innovation structure and policy. Then, considering the present situation of Taiwan, analyzes the effect of government policy and current problems. Recommendations are presented systematically, based upon innovation policy.