Analyzing yield, duration and convexity of mortgage loans under prepayment and default risks

In this article, we construct a general model, which considers the borrower’s financial and non-financial termination behavior, to derive the closed-form formula of the mortgage value for analyzing the yield, duration and convexity of the risky mortgage. Since the risks of prepayment and default are reasonably expounded in our model, our formulae are more appropriate than traditional mortgage formulae. We also analyze the effects of the prepayment penalty and partial prepayment on the yield, duration and convexity of a mortgage, and provide lenders with an upper-bound for the mortgage default insurance rate. Our model provides portfolio managers a useful framework to more appropriately appraise the mortgage and more effectively hedge their mortgage holdings. From the results of sensitivity analyses, we find that higher interest-rate, prepayment and default risks will increase the mortgage yield and reduce the duration and convexity of the mortgage.     

The strategic choice of payment method in takeovers: The role of environmental,social and governance performance

Payment method choice in takeovers is mainly driven by both asymmetric information between the acquirer and the target and the acquirer's financial capability. In this paper, we examine whether increased transparency and better access to finance induced by environmental, social and governance (ESG) performance are associated with the strategic choice of payment method in takeovers. More specifically, we investigate how the acquirer's and the target's ESG coverage and different levels of ESG performance affect the probability of cash offers in a sample of 836 US takeovers from 1992 to 2014. In examining the target, our results suggest that ESG coverage is positively associated with the probability of cash offers, whereas we find a negative relationship for ESG concerns and no effect for ESG strengths. Upon examining the acquirer, ESG coverage and ESG concerns both increase the probability of cash offers; however, we do not find results supporting our prediction regarding the acquirer's ESG strengths. We infer that ESG coverage and level affect strategic considerations in the choice of the payment method in takeovers because they not only reduce information asymmetry, but also enhance financing capability.     

Exploring the dynamic spillover of cryptocurrency environmental attention across the commodities,green bonds,and environment-related stocks

We analyze the dynamic spillover impact of cryptocurrency environmental attention (ICEA) on three asset classes: commodities, green bonds (GBs), and environment-related stocks. Our wavelet-based analysis suggests that ICEA is sharply escalated after the first quarter of 2021. During this period of intense attention, only the soybean commodity and Solactive GB tend to move positively and negatively with ICEA, respectively. Accordingly, the clean energy, sustainability, and Environmental, Social, and Governance (ESG) stock indices are positively associated with ICEA during 2018–2019 at the medium frequency bands. In most periods and frequency domains, most commodities, GBs, and environment-related stocks are not strongly linked to ICEA. Moreover, Diebold and Yilmaz’s (2014) spillover estimations signify no strong spillover effect of ICEA on the asset classes considered in this study. These findings are further corroborated by the wavelet-based Granger causality analysis. Moreover, our quantile regression (QR) estimations suggest that most assets are adversely influenced by ICEA, depending on the market conditions. Our research conveys some novel and vital policy ramifications to both investors and policymakers.     

Organizational commitment in Chinese small- and medium-sized enterprises: the role of extrinsic,intrinsic and social rewards

In this paper, there is an assessment of the likelihood of the social dimension of the 1992 EC programme amounting to a new model of social development for the community. The conclusion is that the centripetal forces required for the creation of a fully fledged social union are absent from the integration process. Hence, despite the upsurge of Europeanization, considerable centrifugal forces remain inside the Community, preventing the immediate enactment of a big policy model. Above all, no heavy intrusion is likely to occur into existing national systems of welfare and labour market regulation.     

深入贯彻落实十七大精神 切实加强和改进党的作风

作风建设同思想建设、组织建设和制度建设一样是马克思主义政党建设的重要组成部分,更是中国共产党人长期坚持和不断探索的重大课题,党的十七大对切实加强和改进党的作风提出了新的要求。加强作风建设、狠抓工作落实是党的建设的根本,是加强党的执政能力建设、巩固党的执政地位的关键。     

Human resource management in Chinese multinationals in the United Kingdom: The interplay of institutions,culture, and strategic choice

This is a study of the challenges faced by Chinese expatriate managers and their strategic responses in securing a workable degree of alignment in UK subsidiaries, against a backdrop of competing home‐country and host‐country pressures. Although much of the literature on home‐country and host‐country effects tends to either adopt a culture or an institutional approach, this study highlights the intermeshed nature of the two. In locating cultural dynamics within an institutional firmament, this study juxtaposes the effects of each and draws conclusions as to their intersection. It is founded on in‐depth interviews with home‐country and host‐country managers. The findings suggest, on the one hand, Chinese expatriate managers tended to see local regulations as an obstacle to efficiency, rather than as a means to access context‐specific complementarities. On the other hand, these managers recognized the need to fit in with established locally specific ways of doing things and in securing sufficient staff buy in to sustain operations, and played a key intermediary role between headquarters and subsidiary.