Entrenched Board in New Public Firms： An Empirical Study of Chinese IPOs

This study empirically investigates the impact of managerial entrenchment on firm financial performance of Chinese firms initial public offerings （IPOs）. Using 142 firms listed in the Shenzhen Stock Exchange （SZSE）, which was collected from the Guotaian Research Service Center （GTA-RSC） databases, this study uses two proxies to measure firm performance and three proxies to measure managerial entrenchment. The two proxies for firm performance are Tobins＇ Q and return on assets （ROA）, and the three proxies for managerial entrenchment are entrenchment 1, entrenchment 2, and entrenchment 3. These three entrenchment proxies are derived from the principal component analysis （PCA）. Though previous studies of managerial entrenchment and firm performance variables suffer from endogeneity, with respect to the corporate governance it is unclear as to which variables are endogenous and which are exogenous. This study confirms that the data are linear and no endogeneity issue should be address in this study, but only heteroskedasticity, non-normality for Tobins＇ Q are a problem, therefore, the regression method employed for Tobins＇ Q is the generalised least square （GLS） and the ordinary least square （OLS） between estimators for ROA. The regression result for Tobins＇ Q reveals that managerial entrenchment is negatively impact on firm performance. The results are in contradiction to the stewardship theory for new firms whereas the managerial entrenchment for new firms is positive. Furthermore, only one entrenchment proxy yields a significant coefficient. In conclusion, the negative results of entrenchment proxies were caused by the different institutional structures and legal systems which are the Chinese corporations that are still largely owned and controlled by a state and hence the centralised state controlled was responsible for all managerial actions.     

The effect of financial ratios, firm size, and cash flow from operating activities in the interim report to the stock return

The objective of this study is to examine the value relevance of accounting information in explaining stock return. The study uses profitability, liquidity, leverage, market ratio, size and cash flow as proxies of accounting information. Cumulative abnormal return and market adjusted return are used as stock return variables. The samples of the study are listed companies in manufacturing industries that actively trading between 2003-2006 in Indonesia Stock Market. The study finds that profitability, turnover and market ratio has significant impact to the stock return. The result consistent with previous studies Hobart （2006）, Utama and Santoso （1998） and Restraningsih （2007）.     

Segment Reporting： Value and Policy Choice

Evidences indicate that segment reporting has the ability to forecast firms＇ performance and reflect risks of stock market. However, there is no consensus between IAS and FASB on the choice of policy for segment reporting. Based on the analysis of IAS and FASB＇s statements for segment reporting, this paper points out that industry and geography are the two vital bases for determining the segments, and internal organizational structure also should be taken into account. Before segment reporting, a primary segment needs to be identified, and others can be regarded as secondary segments. The information of the segments can be disclosed in the form of supporting statement. This paper also gives a concrete format of segment reporting.     

Entry and technology transfer in a Cournot model

This work studies entry and technology transfer in a Cournot model where there are two domestic firms. A foreign firm has a patent on a technological innovation that reduces the costs of all firms. The foreign firm can license the innovation to one or both domestic firms. The authors consider two standard licensing policies： （1） auction policy and （2） unit royalty policy. The foreign firm can license the innovation either by staying outside the domestic market, or it can enter the market, license the innovation and compete with the domestic firms. The authors show that （1） when the foreign firm stays outside, it is never optimal for it to use royalties, （2） if it licenses the innovation by entering the industry, then royalties could be optimal and （3） when it decides on its entry strategy by taking its optimal licensing policies into account, it always finds it optimal to enter the domestic market.     

Estimating the Economic Value of Statistical Life in China： A Study of the Willingness to Pay for Cancer Prevention

This paper reports the results of a Contingent Valuation （CV） study on cancer prevention where Multiple-Bounded Dichotomous Choice （MBDC） questions are asked of rural residents in China about their willingness to pay （WTP） for a hypothetical cancer vaccine which is expected to be effective for one year. The WTP data are analyzed with region-, age- and gender-specific cancer morbidity and mortality risk statistics; an upper and lower bound of the Value of a Statistical Life （VSL） are then estimated. The estimated VSL is between 481 and 814 thousand yuan （or 58 and 98 thousand US dollars） at 2000 constant prices, which is compatible with the results of previous studies.     

Generational management in corporate America： The differences and challenges in management of four generations of working adults

There are many differences and challenges that employers face while managing employees in the current work force. Our present day workforce is made up of a diverse group of people： Matures, also known as Veterans （age 55＋）, Baby Boomers （age 45-54）, Generation X （age 35-44） and Generation Y also known as Millennial （age 18-34）. The differences and challenges among these groups will be evident when reviewing recognition and praise, managerial styles, subordinate responses to generational leadership. Companies are stepping back and looking more holistically at how to develop programs and deploy technology that will speak to four distinct generations in the workforce （Sprague, 2008）. Each generation has their own definition of work ethic, responsibility, and performance. The best way to deal with the multi-generations is coming up with ways that make everybody feel like they are members of a team, thus helping them to learn how to develop a better way of communication than what exists between them now. If everybody is a part of a team, then they are all sharing the benefits that the other generations can bring to the table, making them a strong entity. Matures and boomers can become mentors to the X and Y＇s, and the X and Y＇s can then share and impart their knowledge of technology to the Matures and boomers. Companies in today＇s workplace must learn a better way to understand the values of the four generations, for it is very important in understanding and guiding these people in the workplace. Without this proper understanding, the guidance and alliance that managers are hoping to achieve will be even longer in the making and then one, possibly two, whole generations will be gone from the workforce and their knowledge and skill gone as well.     

Government Controlling and Firm Performance： An Empirical Study on China＇s Listed Companies

The current study compares the firm performance in China＇s listed companies by distinguishing the governance controlling of three types of state-shareholder. The results indicate that the performances in firms with direct government controlling are significantly weaker than other firms. In contrast, the performances in firms without direct government controlling are not significantly different. The results suggest that the introduction of market-oriented state-share holders is a desirable process during the transition economy in China.     

Inspections and Information Disclosure： Quality Regulations with Incomplete Enforcement

The weak enforcement and monitoring systems employed in China （e.g., insufficient inspection resources and negligible fines for noncompliance） are widely blamed for the growing unrest over food safety in the country. Given this development, we consider a model where quality inspection performed by agencies is a means of disclosing information on product quality. We analyze the price-quality equilibrium scheme and show that a higher probability of inspection leads to lower price premiums attached to qualified products. We further investigate the welfare effect of minimum quality standards and inspection efforts and show that they should be complementary. We finally suggest that a state dependent inspection strategy, such as not inspecting those firms that have previously been found to be noncompliant, will enhance social welfare.     

Facilitating knowledge management strategies through IT and HRM

In an increasingly competitive environment, where new business practices are regularly introduced, organizations have to be innovative to survive. In the present competitive climate, knowledge is considered as the main distinguishing factor of business success, and it is seen as the foundation of organization＇s innovation. The emergence of knowledge-intensive society has changed the nature of business competition. Hence knowledge needs to be appropriately managed. Knowledge Management （KM） focuses on managing different knowledge processes such as acquiring, creating, storing, sharing, transferring and applying implicit and explicit knowledge with objective of product and process innovation, performance development and sustainable competitive advantage. This paper tries to demonstrate KM lead to promotion of innovation and performance when it is correctly supported by human resource management （HRM） and information technology （IT）. The questions we will try to investigate in this paper are： How knowledge in organizations can be managed？ What is the connection between HRM, IT and effective implementation knowledge management strategies and how these relationships affect on organizational goals？ For this means, this study ftrst states the importance of knowledge, KM process and introduces two strategies for managing knowledge （exploitative and explorative strategy）. Next, it demonstrates each strategy requires to desired facilitator to support them in action. Finally, with presenting of model, this study concludes that each one of strategy can cover some KM process. Hence for the effective implementation of knowledge management process, organizations have to utilize both strategies.     

The fable paradigm of the gender pay gap： Evidence from Portuguese private firms

This study investigates gender income disparity in Portuguese firms using separate Tobit models for men and women. While job segregation seems to be one of the major sources of gender disparity, women do not appear to be systematically underpaid in predominantly female occupations, regardless of the industry. The authors found that gender pay gap is larger in domestic firms, and it increases with employees＇ accumulated tenure and decreases with advanced education for women and on labor market entry. Despite showing some encouraging cracks, the glass ceiling still continues to prevent women from reaching top management positions. Finally, despite it appears wage disparity does exist, and it will probably continue to exist, the results point towards a window of opportunity for women.     

Return threshold model analysis of two stock markets： Evidence study of Italy and Germany＇s stock returns

This paper discusses the model construction and the association between the Italy and the Germany＇s stock markets. The period of study data is from January 3, 2000 to June 30, 2008. This paper also utilizes Student＇s t distribution to analyze the proposed model. The empirical results show that the two stock markets are mutually affected each other, and the dynamic conditional correlation （DCC） and the bivariate asymmetric-GARCH （1, 2） model is appropriate in evaluating the relation between them. The empirical result also indicates that Italy and Germany＇s stock markets show a positive relationship. The average value of correlation coefficient equals to 0.8424, which implies that the two stock markets return volatility have a synchronized influence on each other. In addition, the empirical result also shows that there is an asymmetrical effect between Italy and the Germany＇s stock markets, and demonstrates that the good news and bad news of the stock returns＇ volatility will produce the different variation risks for Italy and the Germany＇s stock price markets.     

Defining the Entrepreneurial Capital Construct

The purpose of this paper is to show preliminary results from an international research project on intellectual capital and value creation led by Lappeenranta University of Technology （Finland）. In the case of this paper, results from Italy will be reported and specifically. The Italian analysis focuses on the entrepreneurial capital （EC） and it analyses how large Italian companies develop and enhance this intangible element. The main research question is： What is the current level of EC in Italian organizations and how does it affect value creation.＇？ To this end, the research addressed the different definitions of EC that literature offers. As a secondary step, this paper analysed the variables suggested by previous literature and proposed an original definition for the research project. The definition is that EC is a stock of competences and the personnels＇ attributes related to proactive, risky, and aggressive decision-making and behaviour. This research provides researchers and managers with unique insights into the evolutionary nature of the relationships between distinct 1C variables and draws a picture on the state of art of corporate EC in the selected sample. This research highlights and improves companies＇ abilities to manage their EC. Furthermore, this research will set the agenda for improving the EC practices of Italian companies and will allow future comparison with firms from other countries that are participating in the same project identifying different pathways to success.     

Effects of Team Structure on Innovation Performance： An Empirical Study

Teamwork is gaining increasing attention in a broader management research. In addition to previous research on the relationship between team structure and innovation performance, this study draws from an interesting experience-based theory advanced by Kelley and Littman （2005）, which examines teams from design thinking perspective, and tests its contributions and effects on team＇s innovation performance. According to Kelley and Littman any team should include the following team roles： The anthropologist, the experimenter, the cross-pollinator, the hurdler, the collaborator, the director, the experience architect, the set designer, the storyteller, and the caregiver. We develop theoretical logics to explain how team structure that includes these key team roles and competences lead to a better innovation performance, and propose pertinent hypotheses. Experimental-empirical research and quantitative analysis were used in the study. The study conducted multiple experiments on three samples： a group of foreign entrepreneurship students, a group of technical students, and an additional group of randomly selected individuals, aged between 20 and 58, with diverse backgrounds. A special approach was implemented and a new instrument was developed to evaluate individuals in teams. While the results show that team that possess the major competences proposed by Kelley and Littman are more innovative, preliminary results also show that not all team roles are equally important. Moreover, team roles should be allocated equally among members for better collaboration, member satisfaction, and quick response, and within one team, one prevailing personality is optimal in terms of innovativeness. We discuss the implications of our findings for future research and managerial practice.     

Date Envelopment Analysis of Steelmakers＇ Economical Scale in China

In view of the fact that Chinese steelmakers are not in a developed competitive market, the economical scale of Chinese iron and steel enterprises is measured by Date Envelopment Analysis （DEA） in batches compared with international one. The deep reasons are revealed why Chinese large steelmakers are in batches not in economical scale.     

International Trade Barriers Complaints and Structural Employment： A Conceptual and Quantitative Macro-perspective

Free trade is beneficial for all nations. Pareto optimality can be reached by trade without barriers, leading to maximizing total welfare of nations involved. Yet there are clear cases of complaining at the World Trade Organization （WTO） in which home bias is plausibly the reason for complaining, rather than objective criteria of the rules of trade agreements. Next to home bias in individual cases induced home bias leading to complaining at WTO might also be a trend. Using correlation and stepwise regression analysis a dataset on 28 complaining countries is analysed. The number of complaints at the WTO is the dependent variable in exploratory modeling. Independent variables are various variables on economic structure. Structural unemployment （SUN）, agricultural import share, current account balance, international property rights （IPR）, and foreign direct investment （FDI） turned out to be significantly related to the number of complaints. This is a strong indicator that complaining at the WTO is at least partly induced by other than objective factors. One of these factors other than objective factors could be considered as an induced home bias which leads to disruptive trade. The established relationship with one of these factors indicates the existence of induced home bias as an actual trend based on the outcomes of the analysis presented.     

Real Option and Strategic Decision Making of Duopoly

Other than traditional valuation methods, the real option approach captures the flexibility inherent in investment decisions to make the optimal decision of a finn in isolation from its competitors. In reality, however, the actions or decisions of competing fn-ms （practical or potential） often affect each other＇s investment opportunity. The value of the project for the firms is assumed to follow a Geometric Brownian motion, and the model combines game theory and the theory of irreversible investment under uncertainty. This paper characterizes the resulting Nash equilibrium under different assumptions on the information that the firms have each other＇s valuation for the project.     

A study of urban traffic based on the temporal maps： the case of Guangzhou City

Temporal map is an isochronal map taking time as a measuring unit. It traces out the isochrones according to the discrepancy of the time distance between the different sites from the outside of the city and the down town, It can be clear and intuitional to show the different temporal relationships between the outside of the city and the city centre with the temporal map, The problem of traffic congestion, with its potential /br urban chaos, has increased dramatically with a growing number of vehicles and the continuing aerial expansion of Guangzhou. Both transit riders and drivers find it is a great difficulty to try to acquire the necessary information from urban spatial movements. Valuable time is lost due to the absence of good transportation information. So, the paper analyzes a case in Guangzhou communication with Geographic Information System （GIS）, and uses the most popular vehicles, including buses and taxis that are used to measure the temporal distance in the city. and then proposes the design of a new map that better reflects the status of urban communication, and attempts to change the relationship between one point and another potnt of travel, reducing the amount of time allocated to such. often complex, movements, This paper also points out the obstacles associated with Guangzhou＇s existing traffic congestion, and puts forward a strategy aimed at better d .efining the need of linking the temporal map to spatial map of Guangzhou.     

The determinant of performance of cross-border M＆As in China： A comparative study between overseas Sino and Anglo firms

This study examines the factors that affect the performance of foreign acquiring firms in Chinese M＆As （mergers and acquisitions） market. Comparing between overseas Sino-Group and Anglo-Group, this study found that familiarity and location were the most important factors influencing performance of M＆A transactions in China. It also found that unrelated M＆A deals should be merged with familiarity for gaining positive acquisition performance. The total sample used in this study was 3,442 cases from October 1980 to March 2005. Because this period included all deals of M＆As after the opening of Chinese market in China. The authors＇ finding provided a more universal explanation in the cross-border M＆As in China.     

The Latvian Road to the Euro

The article presents the situation in Latvia ahead of the country＇s adoption of the euro by offering an analysis of the extent to which the country is prepared for the move and of general economic difficulties as well as indicating possible threats to its future development. The article talks about difficulties caused by the great unemployment connected with the specific economy of the country, political problems of the post-socialistic multinational country and steps done towards the fulfilling of all the convergence criteria. Its aim is to present the moments around the change of the currency which is done by the material＇s analysis because there are not enough statistical data for the mathematical analysis. It can be concluded that the adoption of the euro will probably be beneficial in the long run for Latvia＇s economy. The conclusions may be done by comparison with the situation of Estonia and its foreign trade with Poland which is shown in the article because there are a lot of similarities between the two Baltic countries.     

A research of material input and environmental impact for Chinese economy： 1990-2005

The process of economic activities is on the basis of tremendous material inputs. China has been discharging an enormous amount of waste, giving rise to a wide range of environmental impacts. The method of economy-wide material flow analysis （EW-MFA） is one of the effective tools to examine the flow of materials entering physical economies, and recognize early environmental problems. Relevant researches are still at the early stage in China and most focus on material throughput but are rarely concerned about the utilization of recycling resource and environmental impact. Based on more than 3,000 items of data related, materials entering Chinese economy are classified into three types, and then the characteristics of material input and environmental impact are presented for the years 1990-2005 by using the indicators derived from EW-MFA. The Ratio of Recycled Material （RRM） is added as the new indicator in order to be in accordance with the need of circular economy being promoted in China. Results show that the great changes in the structure of material input cause the continuous increase of industrial solid waste emissions and the bogging down of material productivity. The RRM reveals that the utilization of recycling resources remains at a fairly low level in China. Finally, some weakness of EW-MFA is discussed according to the calculated results.