Institutional Ownership,Risk Disclosure,and Potential Benefits： From the Perspective of Internal Control and Firm Risk

This study investigates risk reporting practices of Chinese listed manufacturing companies. More specifically, it empirically examines the relationship between the percentage of institutional shareholding, the disclosure of risk related information and the impact of risk disclosure on internal control and firm risk. Three risk disclosure attributes indicative of good risk related information disclosure are employed in this research. As hypothesized, we find that firms with higher institutional ownership provide more informative disclosure on distinct risk factors and take more actions in response to the risk factors. Results drawn from the potential benefits of risk reporting suggest that risk disclosure has positive effects on the quality of internal control. We also find that risk disclosure can effectively decrease future downside systemic risk.     

Auditor Experiences,Accounting Firm Size,and Client Ownership

This study investigates whether accounting firms match the experience level of individual auditors with the risk level of clients in order to control audit risk. We find that accounting firms tend to assign more experienced auditors to non-state-owned clients that typically have higher tendency to engage in earnings management. Such an assignment pattern is more pronounced for non-Big 4 accounting firms. Further analysis suggests that auditors＇ experience helps reduce clients＇ earnings management level, proxied by abnormal accruals, and thus improves the audit quality. This study enriches the literature on the allocation of human resources and the risk control mechanism in the audit services industry, which has been seldom explored in prior studies.     

Interview with Sun Bingzhong,and His Sunmart

On the morning of August 15, 2007, with a clear ring of gong, Wuxi Sunmart Holdings Pte Ltd officially got listed on the Singapore Stock Exchange. From this moment, anew member joined in ＂Jiangyin block＂ in Singapore. Following the successful listing of Yangtze Shipping and Junxin Science ＆ Technology respectively in Singapore Stock Exchange and London Stock Exchange, Wuxi Sunmart entered the stock market full of completion as a dark horse. The major leaders of Wuxi government, Zhu Minyang, Gao Pei and Zhang Shixian, all attended the Wuxi Sunmart＇s listing ceremony.     

Strengthen Business Management, Improve Internal Control System

Sarbanes-Oxley Act, is known as the strictest financial act enacted by US government since 1930s.Any enterprise that violates this act is to be severely punished with possible imprisonment of its top management, which will definitely put the company in the danger of losing reputation and refinancing ability as well as investors' trust.The development of the company will be inevitably jeopardized.As an enterprise listed in the US, starting from 2006, PetroChina shall be under the strict verification and assessment of the Sarbanes-Oxley act and construct a well-designed internal control system based on Section 404 in the act.An integrated internal     

Strong Renminbi Policy ＆ the Coming of Age of China＇s Outward FDI

This, we believe, will be the year of Beijing＇s strong renminbi policy. Despite concerns about exports, we believe Beijing will keep the CNY pegged against a strong dollar. Combined with cheaper commodity prices and the pressing need of many overseas commodity firms to deleverage, this will create the perfect opportunity for China＇s firms to significantly ramp up their outward foreign direct investment （FDI）. China＇s outward FDI flows are focussed on three sectors： energy, raw materials, and agricultural land. The beginning of 2009 has seen a flurry of deals in which Chinese investors have secured ownership or long-term supply contracts to such things.     

Survivor Is King

＂The greatest agony for Private Equity （PE） is that when the good projects loom, we do not have enough capital.＂ aninvestor said. His words reflect the fact that, with the financial tsunami in Wall Street, overseas LPs are all lapsing into a shortage of cash flows, which is also causing difficulty for all kinds of funds that want to raise capital. Obviously, every sector in the financial chain has been affected, as shown by an urgent report from Sequoia Capital, a venture capital firm specializing in seeding, startups, and early growth stage investments, which reminds all enterprise partners to restrain their expenditures; this is compounded by the foreboding news that the United States has witnessed a his- toric ＂longest-ever IPO vacuum period＂ -toric ＂longest-ever IPO vacuum period＂ - there have been no IPOs on the NY Stock Exchange for ten consecutive weeks.     

Mainland Companies Become Main Force in HK Stock Market

According to the latest statistics issued by Hong Kong Stock Exchange that among ten enterprises of which raised over HK$10 billion when first listed on     

Banks to List:Rome was not Built in a Day

It's the trend for commercial banks tolist on the stock market, nearly all theworld's leading banks are listed. Onthe New York Stock Exchange forinstance, there are some 900 listed banks,in the Tokyo Stock Exchange, there aremore than 160 listed banks, and in HongKong alone,thereare 40. By comparison,only two banks in China are listed(Shenzhen Development Bank andShanghai Pudong Development Bank).In 1987, the Shenzhen DevelopmentBank became the first listed bank inChina, and not until …     

The Effect of Board Characteristics on a Firm＇s Strategic Change

The purpose of this study is to identify the relationship between the characteristics of the board of directors and strategic change of a firm in the Chinese context. In this study, strategic change is defined as strategic deviation relative to industry norms and strategic variation relative to historical experiences. The size, independence and leadership structure of the board of directors are defined as the board characteristics. We then propose hypotheses on the effects of board characteristics on a firm＇s strategic change. This study takes strategic resource allocation profile as measure to calculate strategic deviation and strategic variation, and then empirically tests and verifies the hypotheses using data from Chinese publicly listed companies in the information technology industry from the year 2006 to 2010. We find that the size, independence and leadership structure of the board of directors significantly affect both strategic deviation and strategic variation. Therefore, we conclude that board characteristic affects a firm＇s strategic change. The conclusion of the study indicates that moderate reductions in the size of the board, increasing the proportion of independent directors and separating the roles of chairman and chief executive officer can facilitate promoting the process of strategic change for a firm in a dynamic environment. Through this study we re-examine the role and significance of the board of directors in strategic decision-making for a firm, and provide useful suggestions on how to form a board that can meet the needs for strategic change for a firm in a dynamic business environment.     

GAO to SEC:Improve Your Controls

<正>The Government Accountability Office has asserted that the Securities and Exchange Commission did not main- tain effective internal control over financial reporting as of the end of its September 2005 fiscal year. The congressional watchdog agency cited continued ma- terial internal-control weaknesses in the areas of prepar- ing financial statements and related disclosures, record- ing and reporting disgorgements and penalties,and information security.The GAO added that it would rec- ommend corrective actions in a separate report.     

Canada Finance Minster： Welcome China＇s Investment in Canada

To forward the relationship between China and Canada in financial and trade sectors and strengthen the cooperation in avoiding the worse impact of international financial crisis, Canadian financial high-level leaders involving Bank of Canada Governor Mark Carney, Canada＇s Minister of Finance Jim Flaherty, Federal Superintendent of Financial Institutions Julie Dickson, as well as five major banks and the two biggest insurance companies in Canada, who are looking to strengthen and expand business ties with China, visited China from August 8 to August 14, 2009. Also they send warm invitations to China enterprises to invest and to be listed in Canada. This visit is a preparation for Canadian Prime Minister Stephen Harper＇s coming visit to China in November.     

Insurers Encouraged to Invest in Banks

Domestic insurance firms should speed up their strategic cooperation with local banks to help the reform of China＇s financial sector, the country＇s insurance regulator said on Dec.21.     

郑州宇通客车股份有限公司

Zhengzhou Yutong Bus Co., Ltd. （hereinafter referred to as ＂Yutong Bus＂）, situated in Zhengzhou Yutong Industrial Park, occupying an area of 1,120,000m^2, can produce 120 complete buses per day. At present, the company has grown into the largest and the most techni- cally advanced large-and medium-sized bus manufacturing base in the world. Since being listed on the Shanghai Stock Exchange （referred to as ＂Yutong Bus＂, stock code： 600066） in 1997, the company has contributed a long-established bluechip high-growth stock to China＇s A stock market. In 2008,     

Financial Services are Emerging

With the rapid development of China＇s economy and the growing need for financial services, both domestic and foreign banks hope to offer the right products and expand their business. These financial products are not limited to normal deposits or loans,but also include new items,such as cash management services,trade finance and supply chain financing solutions,etc.In recent years,these new services have become more and more recognized by customers＇ as Chinese commercial banks focus on developing trade finance,supply chain financing solutions,and cash management services.     

康迪是谁？——中国汽车业的新机会

Who is Kandi--- New Chance for China Auto Makers
Kandi was an automobile manufacturer established only in 2003, it formerly specialized in manufacturing mini service vehicles, but profited as little as the size of the vehicles they produced. Three years ago, they found the globe demand for recreation vehicles was huge; they began to produce recreation vehicles with a conception of environment protection and recreation, their annual production value leaped suddenly from tens of million RMB yuan to 5 hundred million yuan, besides, Kandi has listed on the main board of Nasdaq Stock Market. Now, what troubles Kandi is not that they don＇ t have purchasing orders, but have too many of them.     

Sun Bingzhong's Miracle with His Sunmart

The story goes to four years ago.With a clear ring, Wuxi Sunmart Holdings Pte Ltd (hereinafter referred to as Sunmart) officially got listed on the Singapore Stock Exchange, on the morning of August 15, 2007.From this moment, a new member joined in "Jiangyin block" in Singapore.     

Entrepreneurial Orientation and Performance of Chinese High-Tech Firms： The Mediating Role of Organizational Learning and Moderating Role of Firm Life Cycle

The evidence about how entrepreneurial orientation （EO） affects firms＇ performance remains inconclusive. This study joins the research by incorporating organizational learning （OL） as a micro-macro link and by extending empirical work to the largely underexplored context of Chinese high-tech industries. Results from a survey of 252 Chinese high-tech firms demonstrate： （1） entrepreneurial orientation is positively related to firm performance; （2） organizational learning is also positively related to firm performance; （3） organizational learning partly mediates the positive impact of entrepreneurial orientation on firm performance; and （4） high-tech companies in the start-up and growth stage are likely to demonstrate stronger linkages in the EO-OL-performance relationship than in mature stage, which shows that the EO-OL-performance relationship is moderated by firms＇ life cycle.     

Have You Conducted Due Diligence Investigations?

Many Chinese enterprises don't perform comprehensive and full due diligence investigations prior to their investments and acquisitions overseas.Though some do go through this process,their investigations are mostly incomprehensive and even formalistic.Ihe question is,do due diligence investigations really count that much? Jia Dian'an,a lawyer at the Baker & McKenzie Law Firm,told reporters that an often mentioned case about due diligence investigation is TCL's cross-border merger and acquisition failure.Li Dongsheng,CEO of TCL,regretted very much not having performed a due diligence investigation before the M&A transaction.He saved the cost of more than 20 million in this process,but this brought bad consequences to his company.Businesses in any fields should conduct a proper and comprehensive due diligence investigation on the potential target,including such areas as the financial,legal,tax,environment and market situation,and its intellectual property ownership.     

IM ＆ EX, A ROCKY ROAD

Subprime mortgage crisis, which was triggered by a dramatic rise in mortgage delinquencies and foreclosures in the United States,has interrupted china＇s peaceful rise and has major adverse consequences for banks and financial markets around the globe. Although the direct impact of the subprime crisis is rather small to china＇s economy since the exposure of several national banks to the U.S. subprime lending market is relatively limited, there is no denying that the U.S. subprime crisis has been dragging down world＇s major stocks for months and making it difficult for china＇s foreign trade. It is predictable that the impact of this financial tsunami will shed its shadow on china＇s economy sooner or later. Experts are of the view that China may not be directly hit by the crisis as a result of its strong economic fundamentals, limited exposure to this particular variety of assets,     

Harmonious Stock Prices

Stock price movements in China still remain highly harmonious, in spite of the many significant regulatory and structural changes over the recent years. A survey of the literature reveals that harmony in the stock price movements is related to a few salient features in China＇s capital market： high ownership concentration, high incidence of the use of pyramidal ownership structure, significant state ownership, and a lack of active institutional investors. In addition, we also point out that harmonious stock prices may generally result from low intensity of private information acquisitions by risk arbitrageurs.