Does Corporate Short-term Financing Bills Mitigate Bank Credit Risk？

The corporate short-term financing bill is one of the financial innovation products in 2005 in China, whose purpose is to solve the unbalance enterprise financing structure. On the basis of overview of the corporate short-term financing bills, the paper researches its effect on the bank＇s risk management and reaches the conclusion that the corporate short-term financing bills can reduce the bank＇s credit risk only by improving the systematic and technical environment in China.     

Restriction of cost of capital＇s property right and financing preference of listed companies

Opposite to the financing preference of creditor＇s rights in western firms, Chinese listed companies obviously have the financing preference of shareholding. This paper uses the theory of property for reference, and redefines the concept of cost of capital in a higher level, and considers it as the property of investors. Through a mathematics model, the author analyzes that how restriction of cost of capital＇s property right makes influence on the financing preference of firms, and considers that it is the restriction of cost or the imperfect cost of capital＇s property right that influences the financing cost of shareholding and creditor＇s rights, hence, determining the financing preference of listed companies. In other words, it is the restriction of cost of capital＇s property right that causes the financing preference of creditor＇s rights in western firms, and the imperfect cost of capital＇s property right is the reason for the financing preference of shareholding of Chinese listed companies.     

The institutional innovation and improvement in building of the East Asian corporate governance model

The East Asian corporate governance model is gradually established based on institutional innovation of western corporate governance. This paper holds that institutional innovation of the East Asian corporate governance model is mainly manifested in following aspects： the relational style of governance mechanisms, more intervention of government, high concentration of ownership structure and unique operation of the power institutions etc. This unique model of corporate governance is considered as one of the motivations of ＂East Asian Miracle＂, but it also causes many problems. After the Asian financial crisis, the East Asian countries and regions reform and improve their pattern of corporate governance and obtain some results. The paper deems that reduction of government intervention and legal protection provided by judicial system are crucial for corporate governance.     

From State to State: Quasi-privatization and Firm Performance

This paper uses a sample of Chinese listed companies whose controlling shareholders have changed from government agencies to state-owned enterprises＇ （SOEs）, to examine whether reducing government intervention while maintaining government＇s ultimate control could improve firm performance. The results show that the overall performance of these firms improves after the transfer of their controlling shareholders, due to improvements in both operating and non-operating performance. When we separate all samples into solely SOEs and other SOEs based on the controlling shareholder, we find that operating performance improved significantly in the solely SOE group, whereas non-operating performance improved significantly in the SOE group. In addition, we identify sources of performance improvement from two perspectives： corporate governance and related party transactions. The results imply that the Chinese Government should continue to decentralize control and, at the same time, continue to monitor firm operating efficiency.     

Debt financing and tunneling of Chinese listed firms

Unique institutional structure of Chinese stock market often leads to the distortion of corporate financing behavior, which is a phenomenon widely documented in the literature. However, most previous studies in this field have concentrated on equity financing, especially rights offering, while ignoring debt financing as an important alternative. This paper examines the debt financing behavior of firms after making the decision to utilize rights offering. Empirical findings suggest that debt financing increases significantly after rights offering, which results in a higher leverage ratio. Changes in leverage are positively influenced by rights offering scale, which is consistent with the ＂money encirclement＂ hypothesis. Our evidence also indicates that with the increase in ownership concentration, the leverage also increases.     

Discussion of the External Corporate Governance

External corporate governance mechanism, which takes effect through capital market, manager market, and product market, is an indispensable part of corporate governance system. To build external corporate governance mechanism on the basis of party at interest of theory will form an effective supervision and control system, deduct agency cost, encourage external governance entity to make efforts for the company＇s long-term achievement, and create fine external environment for corporate governance. Thus, in China, it should be considered to form an effective external corporate governance mechanism for external governance entity, which takes part in corporate governance.     

Corporate Governance of Enterprise Groups in China

Clear property right is the core of modem enterprise system, but it can＇t become all-powerful medicine to an enterprise because many enterprises with clear property rights in some countries can＇t avoid bankruptcy in market competition yet. Good corporate governance as a system arrangement will be good to the organization management operation. The research to the corporate governance of enterprise groups will be advantageous to corporate groups＇ standard operation. But the existing research is almost pointed to single enterprise not enterprise groups. The structural complexity of enterprise groups will increase the difficulty in corporate governance. The paper is based on and oversteps the traditional corporate governance theories to research the corporate governance of enterprise groups. We try to summarize the domestic and foreign correlation materials in order to provide the argument basis for the research to the corporate governance of enterprise groups.     

Would China＇s Sovereign Wealth Fund Be a Menace to the USA？

The sovereign wealth club acquired a new member with the official launch of the China Investment Corporation （CIC） on 29 September 2007. The arrival of CIC has further heated up debate regarding sovereign wealth funds （SWFs） and their potential implications for global financial markets. This is because, in carrying out its investments, CIC can tap into China＇s huge official foreign exchange reserves, which by April 2008 had surged to US$1.76tn. CIC＇s initial working capital of US$2OObn makes it the fifth largest SWFs in the world today. This article seeks to analyze CIC＇s investment strategies, as well as their potential economic and political implications for global as well as US financial markets.     

How Good Is Corporate Governance in China？

Based on the revised OECD Principles of Corporate Governance of 2004 and China＇s regulatory framework, we develop a corporate governance index （ CGI） to measure overall corporate governance and disclosure practices of the 100 largest listed companies in China. The results show that Chinese companies have been making progress in corporate governance reform and there is significant difference in CGI between the top and the bottom companies＇ performance. Among the six parts of CGl, Chinese listed companies perform better in disclosure and transparency, but show weakness in board of supervisor and stakeholders roles. Further tests show that the improvements in corporate governance of state-owned enterprises have resulted in some initial signs of success.     

Study on Real Estate Investment Trusts and application in China

The Real Estate Investment Trusts （REITs） is a mature investment and financing tool in the real estate market abroad. RE1Ts is able to deploy resource, circulate necessary funds and disperse risk effectively. It is the feasible effective way and necessary choice during the real estate finance innovation. But there is a big gap between RE1Ts in China and the mature RE1Ts abroad. Because RE1Ts in China puts more attention on the financing function of the real estate. Besides, because the relevance law and the market environment are not perfect, REITs couldn＇t exploit its advantages very well in China. It needs to be developed in the practice. This paper starts with introducing the concept of REITs. Then the paper goes on to tell the types and characteristics of REITs aboard. It continues to study the experience of mature RE1Ts in the market and finds out disadvantages which China＇s RE1Ts have. Based on above research, the paper considers about the situation in China and states the mode of RE1Ts we should choose in China. At the same time, the paper points out the important problems we should deal with when we develop REITs in China.     

A Theoretical Probe on the Establishment of Chinese Union Pay among Chinese Banks

With China＇s entering WTO and the gradual opening of finance market, domestic banks, whether large or small, state-owned or not, are confronted with challenges and fierce competitions from foreign consortiums and banks. Consequently, it arouses a warm debate over whether China Union Pay should be established among native banks. This paper focuses mainly on this issue, through game theory analysis; it clearly articulated the significance and necessity of setting up China Union Pay among native banks and also compared between the benefits and loss of them to get the final recommendation.     

Competitive Neutrality of the OECD Consensus Myth or Reality

This research paper gives into context ongoing changes in the balance of forces in the international markets caused not only by the crisis and the need to restore market-neutral internationally agreed system for state participation in the support for exports based on real economic criteria. The aim of this research is to demonstrate the changes of the balance of forces in the international markets. This paper presented the statistical data relating to development of GDP, indebtedness or value of exports or imports that the present changes in international markets and open discussion about the topic problem. This article recalled the basic principles of insurance and export financing with state support and also are presented current problems of implementation rules of the CONSENSUS. Due to the fact that state support for exports is an important internationally respected system it is necessary to overcome some doubts and bring to the system real market neutrality. Therefore, we ask whether are respected in practice the agreed principles of international state aid exports and what problems currently international markets and fundamentally different countries are struggling. It can be said that the rules CONSENSUS OECD has contributed to the creation of fair market conditions in international markets, but it can be also monitored over time to some extent being away from the demands of market neutrality. In view of these facts it can be considered as the basis of the current situation primarily to ensure a truly market and competitive neutrality of state support for exports.     

Reforming the Financial Health Care System： The Case of the Republic of Albania

The Albanian health care system is currently in a period of deep transformation as well as the country is reflecting the future reforms after the turbulent development of the most recent years. The admission of Albania among future members of the European Union requires also an innovation in the health care system in order to build a model more compliant with the European performance and standards. These innovations are required also in the managerial approach to the health care and in its financing system. The aim of this paper is to analyze the actual financing model of the Albanian health care sector while highlighting the possible future managerial development. First of all, this article presents a history review of the Albanian health-care system, analyzing the current governance model. The goal of this approach is to describe the starting point of the reform paths for the future policy makers. Afterwards the research underlines the transition from a financing model based on historical public expenditure to a system based on the performance as one of the main innovation in the managerial approach to the health care. The introduction of management thinking will then allow developing a cost-based financing model, an accounting system in the teaching hospital and, finally, a financing system able to pay for services provided by private health care entities. The article then offers also a contribution to policy makers in order to define the ＂paths＂ of the Albanian health care system in the next years.     

Becoming a more effective manager： Reality versus hype

In our dynamic global environment, strategic requirements are for more effective managers who understand the realities of achievement through others （Service ＆ Arnott, 2006; Welch, 2001）. Unfortunately, management as is practiced in money making businesses is not a requirement in politics, religion, health care or education. Moreover, management within profit making organizations is often not highly effective as demonstrated by the economic meltdown of 2008. Better managing education, religion, politics and health care can solve many societal issues. Also, more effective management in for profits is a must if we are to generate wealth to support these un-poorly-managed societal arenas. This requires knowledge beyond what is in most management courses. This paper attempts to help less effective managers improve by describing the realities of managerial problems （realms and functions） that occur because of disconnects between the ＂is＂ of ＂difficult＂ practical application versus the ＂should be＂ of theory. Moreover, hindsight has replaced strategic foresight as the method of choice among so many business leaders （some of which have failed）, governmental entities （may be about to fail） and scholars （Sorkin＇s, ＂Too Big to Fail＂, contents wishful thinking was a key devise in the mess described, 2009）. This article asserts a good number of these ＂mistakes＂ are caused by an idealistic form of realism.     

Capital structure： The Italian market perspective

This article first investigates the determinants of＂capital structure＂ and the extent to which financial structure policy contributes to the creation of shareholder value in Italian companies through a survey of 76 CFOs of Italian listed non-financial companies, and revealed that the key driver is the quest for financial flexibility, necessary to combine effectively capital structure policy with the other two levers of value creation, investment policy and payout policy. These three value creation drivers are autonomous, but this empirical study reveals a clear hierarchy that links liability policy （capital structure and payout） to asset policy （investments） leading companies to make sub-optimal financial structure decisions that may not minimize the weighted average cost of capital, though ensuring the financial flexibility necessary to activate their principal lever of value creation, investment policy, effectively and without excessive constraints. A major finding in a subsequent benchmarking exercise is that Italian ＂family capitalism＂ affects corporate governance and therefore capital structure decisions. This finding may not be restricted to the Italian market, but could apply to all countries in which ownership structures are centered on very few shareholders with weak financial market control and where banks often play a crucial role in the governance of companies.     

On Making Monetary Policies by U.S. Federal Reserve Board and Direction of Development

The debate on Rules and the discretionary approach is a long-term topic in the implementation of Central Monetary Policy. Time inconsistency enables rule advocates to have a firmer theoretical foundation in the degree of confidence, but the discretionary approach is adopted by U.S. FRB more often due to feasibility. The Taylor rule, as a simple tool, is only used as a guideline, which cannot better account for the making of complex monetary policy. A general targeting rule is relatively thorough and U.S.FRB can adopt the discretionary approach based on rules. Moreover, it can predict and judge the possible economic situation in the future. This paper probes into the micro-pitfalls in U.S. FRB＇s monetary policy theories, and puts forward proposals on how tochange them, through the general equilibrium model of money and deflation.     

The Analysis of Influencing Factors on Customer＇s Purchasing Decision-making

The success of marketing activities relies on whether the enterprise can attract customers to buy its products or not. It is important for developing marketing activity to understand the customer＇s purchasing behavior. This article researches the influencing factors of the complicated degree in customer＇s purchasing activity and the behavior, even repurchasing. Based on the study, it also makes some suggestions on marketing tactic.     

Does Foreign Direct Investment Provide Desirable Development Finance？ The Case of China

Foreign direct investment (FDI) is often considered as a cost-effective and risk-reducing source for development finance. This paper,however,shows that FDI finance often entails underestimated risks and costs. FDI might react sensitively to business cycles and might not be as "permanent" as conventionally believed. FDI might also accelerate other forms of capital flow in times of financial difficulties and,hence,destabilize financial order. In addition to the risks,compensations to FDI and the high import-dependency of FDI-related trade lead to a considerable drain on the balance of payments. Moreover,the reliance on foreign capital for development finance is equivalent to building a Ponzi financing scheme and,therefore,is unsustainable. Given the fact that FDI financing is risky and costly and China does not lack savings,it is suggested in the present paper that China's efforts in attracting FDI should not aim at external capital provisioning.     

An empirical analysis of the growth of it enterprises in China

The paper makes an empirical analysis to the main factors effecting IT corporate growth-human resource and R＆D. By using data of China＇s listed IT companies, we focus on the relationship among corporate value （net return of equity, ROE） or development of corporate value （Tobin＇s Q） and manager＇s salary, R＆D fee, R＆D employee, etc. The conclusion shows that development of corporate value （Tobin＇s Q） has positive correlativity with the plurality of board chairman and general manager, independent directors＇ proportion, R＆D fee, and R＆D employees while it is non-obvious positive with salary of superior managers, holding stocks of general manager, capital investment, and negative with corporate scale. The conclusion is accordant with the development status of Chinese IT corporation.