The degree of IPO underpricing in China

This paper studies the IPO underpricing in the emerging stock market of China. The empirical results reveal that in China, the degree of IPO underpricing measured by first-day return is more than 100%, which is a prevailing phenomenon for almost all IPO firms, regardless of the IPO time and the industry of the firm The degree of IPO underpricing in China is larger than the IPO initial returns documented in almost all the other countries. This considerable underpricing in China can hardly be explained by the information asymmetry theory and agency theory.     

The firm under uncertainty: real and financial decisions

This paper examines the interplay between the real and financial decisions of the competitive firm under output price uncertainty. The firm faces additional sources of uncertainty that are aggregated into a background risk. We show that the firm always chooses its optimal debt–equity ratio to minimize the weighted average cost of capital, irrespective of the risk attitude of the firm and the incidence of the underlying uncertainty. We further show that the firm’s optimal input mix depends on its optimal debt–equity ratio, thereby rendering the interdependence of the real and financial decisions of the firm. When the background risk is either additive or multiplicative, we provide reasonable restrictions on the firm’s preferences so as to ensure that the firm’s optimal output is adversely affected upon the introduction of the background risk.     

基于互联网金融时代下普惠金融的发展模式

目前,全面深化金融改革的进行,使得我国金融体系相应改变,金融创新朝着建立普惠金融体系的方向发展。与此同时,伴随互联网的飞速发展,互联网金融的兴起对传统金融模式造成了巨大的冲击。文章研究了在互联网金融飞速发展的背景下,互联网金融对普惠金融的促进作用,互联网金融存在的风险与不足,并提出具有现实意义的改进措施的建议。     

The effect of international firm mobility on wages and unemployment

Although the increase in international firm mobility is well documented, its effects on macroeconomic aggregates and the labour market remain controversial. Multinational enterprises (MNEs) benefit from an international outside option during wage bargaining, leading to a decrease in average wages. However, a strategic incentive to hire extra workers in a foreign (home) plant in order to reduce wages in the home (foreign) plant has an indirect positive effect on wages due to spillovers resulting from an increased demand for labour. In a framework of frictional unemployment, permitting MNEs leads to a decrease in unemployment. Abstracting from transport and plant fixed costs, MNEs lead to higher wages. Including transport and plant costs generally leads to lower wages, though the effects are small. The strategic hiring effect is important in mitigating the fall in wages.     

The day of the week effect in IPO initial returns

Monday IPOs occur infrequently and have higher mean initial returns than those issued on other days. The latter result is not a product of outliers or penny stocks and remains after controlling for factors related to IPO underpricing. The Monday effect is generally robust across time, but during 1995–2003 is present only in IPOs with their first reported trade on their offer date. Volume patterns suggest Monday IPOs come to market later in the day, which has been linked to higher initial returns. We argue that the observed patterns are consistent with the incentives of underwriters and investors.     

国际财务管理基本特性研究

国际财务管理基本特性,意指营利性组织从事国际理财活动所具有的内在特质和外在特征。就内在特质而言,它客观地存在于理财活动中,并由营利性组织的资金运动规律决定的,且普遍适用于各种营利性组织的理财;就外在特征而言,由于各个营利性组织的内在条件不同,囿于的外部环境相异,因而不同营利性组织的理财特征不尽一致,甚至存在很多或很大的区别与差异。本文仅就国际财务管理的基本特性,略陈笔者的论点与看法。 　　一、国际财务管理的战略与组织 　　由于国际性营利组织在全球市场上开展竞争,从事其业务运营和财务管理,一般并不主…     

The effect of human resource management practices on the perceptions of organizational and market performance of the firm

The purpose of our study is to extend the emerging empirical literature on the firm‐level impact of human resource management practices. Results based on a national sample of organizations from private and public sectors in Israel indicate that these practices have a significant impact on both the perceived organizational and market performance of the organization. The single independent variable found to be statistically significant in affecting perceived organizational performance was training practices. In the case of perceived market performance, we found that, in addition to training practices, employee selection practices also significantly affected the perceived market performance.¹ © 1999 John Wiley & Sons, Inc.     

The effect of the minimum wage for tipped workers on firm strategy,employees and social welfare

Millions of workers derive much of their income from tips and are subject to the “tipped minimum wage” that differs from the regular minimum wage. This article examines the implications of the tipped minimum wage and shows that increasing it may lead restaurants to adopt a compulsory service charge in lieu of tipping to extract the economic rent enjoyed by waiters under tipping. Because servers are better off with tipping, this implies that increasing the tipped minimum wage in an attempt to increase servers' income may achieve the opposite result. Moreover, increasing the tipped minimum wage may reduce social welfare.     

The effect of firm complexity and founding team size on agile internal communication in startups

Today’s firms, particularly startups, require agile communication to sense and seize opportunities and to adapt to the market as quickly as possible (Picken 2017; Takeuchi and Nonaka 1986). However, scholars have predominantly focused on external communication, taking agile internal communication for granted. This paper analyzes the combinations of conditions (i.e., firm features and communication devices) that are present in startups with agile internal communication. The study considers the startup’s life cycle, the size of the startup, and the size of the founding team. The use of direct communication channels, structured communication channels, and agile methods is also considered. Analysis of 88 Spanish startups shows that the size of the founding team influences the combination of present and absent communication methods when agile internal communication is present. In startups where the founding team is small, direct communication methods are absent, whereas the use of structured communication methods, online project management, and other communication tools is present. On the contrary, when the founding team size is large, direct communication is a core condition, as is the absence of structured communication methods. Agile methods represent a peripheral condition for the presence of agile internal communication when the founding team is small and structured communication is present as a core condition. Similarly, when the founding team is small and the presence of direct communication is a core condition, the presence of agile methods is a peripheral condition for the presence of agile internal communication.

     

Utilizing e-business technologies in supply chains: The impact of firm characteristics and teams

This paper presents findings from an exploratory study that analyzes the drivers and outcomes of e-business technology use in the supply chain. Using a combination of case studies and survey data from a diverse sample of industries, the research examines how industry context, firm characteristics and firm-level strategic resources, such as purchasing teams, influence the exploitation of e-business technologies and the relationship between e-business technology use and firm performance. Based on a synthesis of related literatures from transaction cost economics and the relational view of the supply chain, a two-dimensional framework for e-business technology is proposed with transactional and relational dimensions. However, empirical analysis indicated that transactional technologies can be further subdivided into two factors: dyadic cooperation and price determination. Significant differences were found between the two dimensions in terms of their overall levels of adoption, with dyadic coordination being the most widely adopted. In addition, the development of strategic resources expanded, in particular internal and customer teams, the use of e-business technologies expanded. Purchasing organizational structure and firm size also were positively related to the adoption of transactional e-business technologies. Finally, of particular importance to practitioners, e-business technologies targeted at reducing dyadic coordination costs lead to improved financial performance.     

支持互联网金融发展的财税路径研究

互联网金融是传统金融与互联网"开放、平等、协作、分享"精神相结合的新兴领域,它带来金融创新的同时,也颠覆着传统的金融模式。但因始终缺少国家财税政策作指引,互联网金融市场的问题日益凸显。为了建立健全我国互联网金融市场,切实帮助新兴互联网金融企业发展,政府应借鉴国内外成功经验,从财政支出、财政监督、税收优惠方面对互联网金融行业给予支持,进而促进我国经济多元化发展。     

The moderating effects of knowledge characteristics of firms on the financial value of innovative technology products

The development of innovative technology products is both costly and risky, and their economic value is highly uncertain. Based on a sample of 312 innovative technology products introduced between 1987 and 2006 in the U.S. and a long-horizon event study with control firms, we study the impact of innovative technology products on the long-term financial performance of a firm. In particular, we examine how the knowledge characteristics of the firm, which embrace its knowledge absorptive capacity, knowledge impact, and knowledge diversity, moderate such an impact. We find that on average an innovative technology product increases the firm's return on assets (ROA) (relative to control firms) by 2.18% in the second year after product introduction. However, the value of an innovative technology product varies with the knowledge characteristics of the firm that invented it. We find that the financial impact of technology products is stronger when firms have higher knowledge absorptive capacity, and more impactful and less diversified knowledge (as measured by patents). We classify firms into three categories based on their knowledge characteristics. We find that firms with a high knowledge fit increase their ROA by 4.55% after product introduction, while those with a low knowledge fit receive no benefit from the innovative technology products at all.     

The effect of performance measurement systems on firm performance: A cross-sectional and a longitudinal study

Performance measurement (PM) systems have been popularized over the last 20 years and the operations management literature is replete with discussion of metrics and measurement systems. Yet, a comprehensive nomological network relating types of PM system uses to organizational capabilities and performance is lacking. Furthermore, there is scant empirical evidence attesting to the explanatory efficacy of PM systems as it relates to organizational performance. We view PM system uses through the lenses of the Resource Orchestration Theory (ROT) and explore specific relationships of underlying variables by relying on the Organizational Information Processing Theory (OIPT). Resting on the extant literature, we identify two types of uses which include Diagnostic Use (the review of critical performance variables in order to maintain, alter, or justify patterns in an organizational activity) and interactive use (a forward-looking activity exemplified by active and frequent involvement of top management envisioning new ways to orchestrate organizational resources for competitive advantage) and relate them along with their interaction (i.e., dynamic tension) to organizational capabilities. We further link capabilities to target performance, which subsequently impacts organizational performance (operationalized through both perceptual and objective financial performance measures). The nomological network is tested via a cross sectional study (386 Italian firms) while the efficacy of PM systems to explain organizational performance is examined by using longitudinal panel data approaches over a 10 year period. There is sufficient evidence to suggest that the use of PM systems leads to improved capabilities, which then impact performance. Contrary to the extant literature, however, we discovered that Diagnostic Use appears to be the most constructive explanatory variable for capabilities. On the other hand, in light of a longitudinal study, we also uncovered that Diagnostic Use experienced depreciating returns as far as objective financial measures are concerned. Also, when high levels of Diagnostic Use were coupled with low levels of Interactive Use, they produced the lowest levels of organizational capabilities. Conversely, high levels of both types of PM system use generated extraordinary high levels of capabilities. There is sufficient evidence to suggest that organizations cannot rely merely on Diagnostic Use of PM systems. We also learned that the effects of PM systems (measured via adaptation) fade unless high learning rates are applied. We offer detailed recommendations for future research which have theoretical as well as empirical implications.     

The impact of the WARN Act on firm value

The Worker Adjustment and Retraining Notification (WARN) Act of 1989 mandated that at least 60 days advance notice be given to employees. Critics argued that its passage would decrease managerial flexibility in closing plants, subsequently reducing firm values. This study addresses this issue by examining the stock market's reaction to announcements leading to the eventual enactment of the WARN legislation. We find evidence indicating negative effects of the legislation on stock returns of small firms.     

The effect of earnings forecast precision on firm value and insider trading under voluntary disclosure in Taiwan

Taiwan changed its earnings forecast policy from mandatory to voluntary disclosure in 2005. In this study, the inferences of voluntary earnings forecast are examined based on forecasts issued by listed firms. This study suspects that insiders have a temptation to strategically manipulate financial forecast information to influence markets and thus receive extra rents. Under the new earnings forecast disclosure policy, the number of disclosing firm decreases but the precision of earnings forecast increases. The empirical result from dynamic panel data evidences the forecast error of voluntary disclosure may negatively impact firm values. Furthermore, there is a positive relationship between insiders＇ trading profit and manipulation of earnings forecasts. As volatility in insider manipulation increases, it is difficult for the investors to predict the real intention of insiders, and insiders may achieve greater benefits from trading. This study also observes that many listed companies hold investor conferences to provide earnings guidance in Taiwan. The reason may be that investor conference is more flexible and has less forecast error cost than the formal financial forecast. This study provides important insights into earnings forecast policy in emerging markets. The competent authority should improve corporate governance and develop monitoring functions to abate forecast manipulation.     

Green entrepreneurship and SME performance: the moderating effect of firm age

International Entrepreneurship and Management Journal - Green entrepreneurship has been increasing with growing attention to environment protection by a variety of stakeholders. Green innovation,...     

金融衍生工具的风险特点与恰当选择

本文分析了金融衍生工具的特点和风险种类,指出应当充分认识金融衍生工具的风险性,以风险控制为主,根据需要,选择恰当的金融衍生工具,从而更好地防范汇率风险。     

财权分层理论与财务主体一元性

根据财权分层理论,财权割裂是对财权分层理论的违背.但财权分割不同,它是建立在财权分层理论的基础之上的,是对财权分层理论的推进,然而它并不能取代财权分层理论.根据财务主体的涵义,所有者和经营者都不能成为财务主体,而仅仅是财务管理主体(财务治理主体).只有企业才是真正的财务主体.因此,财权的分层管理是在企业这个财务主体范围内财务管理主体(财务治理主体)之间的分层管理.     

The discussion on audit risk and prevention of accounting firm

This paper analyses audit quality control, brain gain, time pressure of CPA, follow-up education of auditors by firms. The reasons of audit risk rising of CPA are discussed. Based on the foregoing analysis, the author puts forward some measures about self-construction, processes and others of firms and CPA to reduce audit risk of CPA.