Gains from Corporate Multinationalism: Evidence from the China Experience

This paper examines the valuation impact of U.S. multinational corporations' expansion into the Peoples Republic of China (PRC during 1979 to 1987. The market response to the announcement of a firm's initial entry into the PRC is found to be positive and statistically significant, suggesting that expansion into China was a value-enhancing activity. Equity joint venture modes of entry are found to result in greater shareholder gains than nonequity expansion modes. The influence of degree of multinationality, market share, growth, and technology-related variables on the size of shareholder gains is also analyzed.     

各行动态

人民银行十堰中支建成金融信息港十堰中支以“科技兴行”作为发展战略,重视科技投入和科技创新,大力推进办公自动化,依托人行内联网,于近日开通了金融信息港。十堰中支金融信息港覆盖中支各科室和辖区7个县支行。信息港的开通,标志着十堰中支的办公、业务、管理等诸多方面的工作又上了一个新的层次:一是各科室的材料、工作汇报、情况反映通过电子邮件传递,加快了信息传递速度和质量,节约了费用开支;二是可以上网查询和浏览全行的工作情况,如金融监管、金融服务、内部管理等;三是行内重大问题、焦点问题的讨论通过网上发布,增强了全行干部职…     

各行动态

人民银行 平顶山市中文认真做好 金融科技服务工作 ２００１年以来，人行平顶山市中心支行紧紧抓住“服务第一，规范管理，科技创新”二条主线，认真做好金融科技服务工作。 该行根据科技发展和新技术的应用，建立了计算机网络及安全管理相关制度，完善了设备和内控制度，对各种软件、备份介质及文档资料等进行现范化管理；不断加大科技创新力度，启动了“同城清算系统” 和“大地对接系统”两大系统业务量也较手工处理时提高了四倍，建成开通了“会议电砚系统”和“信息服务系统”，顺利将Ｎｏｔｅｓ系统延伸到县支行，为普及安全知识、提…     

小处做起

到英国投资中小企业是明智的选择.英国政府为中小企业的发展提供了良好的环境,并制定了扶持中小企业发展的政策.     

各行动态

人民银行　　林州市支行　　加大科技监管力度　　人行河南省林州市支行在搞好科技服务的同时,不断加大科技监管力度,提高技术风险的防范能力。一方面,配备专职网络管理员,对现存技术设施、技术手段进行定期检查,及时发现微机运行中存在的问题,全面防范科技设施引入的技术风险;     

Learning from Trading

The incorporation of diverse information into asset prices isempirically examined in an actual securities market with multiplerounds of trade. Using prices of Israeli index and nominal bondsof equal maturity, we calculate implied expectations of inflationthat has already occurred but for which the official statistichas not yet been announced. Learning is defined as the convergenceof these expectations to the actual level of inflation in theperiod after the end of the month but before the announcementof the official statistic. We find that the variance of theinflation expectation errors decreases with trading days inthis period. The decline in the variance suggests that investorslearn, by repeatedly observing prices, about the distributionof other investors' information. We also find a positive relationbetween the dispersion of relative price changes and the sizeof the inflation-expectation errors on the first round of trade.The correlation diminishes as investors learn about the distributionof inflation information in the economy.     

从“责任”谈起

"责任"一词是个新词,在汉语里才有一百多年的时间.在古代汉语里,"责"与"任"没有连接在一起使用过.     

各行动态

工商银行州中心支行召开计算机安全管理培训班(本刊通讯员冯青)　　根据公安部和人民银行总行《关于开展计算机安全管理专(兼)职人员培训的通知》精神,为了尽快提高河南省辖区人民银行系统计算机安全专(兼)职人员的业务管理水平,2000年10月15日～20日,郑州中心支行与河南省公安厅联合举办了计算机安全管理专(兼)职培训班。来自河南省辖区的16个地市人民银行中心支行的计算机安全管理人员,全省112个人民银行县支行计算机安全管理人员,人民银行郑州中心支行保卫处、内审处、科技处的安全专职人员以及河南省公安厅监管监检处人员,共计136人参加…     

各行动态

人民银行 东营市人行网络化帐户管理系统投入运行 (济南分行科技处刘建平 )为了实现帐户管理、同城清算、信贷管理等系统的有机互联，做到数据共享，近日，帐户管理系统在东营市人民银行中心支行推广使用。 考虑到东营市中心支行清算系统早已投入运营，在推广时帐户管理系统与同城清算系统使用同一个运行环境，人民银行及各开户行使用现有的同城清算网点机器，其运行环境紧紧依托于同城清算系统，但两套系统在业务上是完全独立的，分别使用不同的数据库空间、通讯软件、注册用户。 东营市帐户管理系统分帐户管理中心、人民银行、开户行三部…     

Spatial productivity spillovers from public infrastructure: Evidence from state highways

Is public-sector infrastructure a key determinant of productivity? Traditional, project-based analyses of benefits and costs typically do not find large rates of return. Proponents of infrastructure spending instead point to regressionbased analyses of the links between private productivity and public infrastructure that imply large productivity effects from public spending. The disparity in estimated returns is often attributed to geographic spillovers in productivity benefits that are not captured by disaggregated analyses. We examine the degree to which state highways provide productivity benefits beyond the narrow confines of each state's borders. Despite the fact that state highways-especially the interstate highway system-are designed at least in part with interstate linkages in mind, we find no evidence of quantitatively important productivity spillovers.     

Noise from online discussion forums: Evidence from IPOs in China

In this study, we use initial public offerings (IPOs) in China to investigate how online stock forums influence information asymmetry and IPO valuation. The empirical analysis isolates the underpricing and overvaluation components of initial returns. The number of forum comments, postings, and readings are positively associated with initial returns and the degree of underpricing, implying that forums create noise that exacerbates information asymmetry during IPOs. This effect is amplified by the quiet period regulation, which drives investors to rely on online discussion forums to obtain information. Through sentiment analyses of forum posts and media coverage, we find that the negative effect of online forums is more prominent when bad news prevails. We clarify the role of online stock forums in IPO pricing and information asymmetry by separating underpricing from overvaluation in initial returns.     

Learning from repetitive acquisitions: Evidence from the time between deals

Knowledge gleaned from previous acquisitions may confer valuation expertise and other benefits. But numerous acquisitions also entail costs, due to problems of incorporating diverse units into an ever larger firm. Such benefits and costs are not directly observable from outside the firm. This article proposes a simple model to infer their relative importance, using the time between successive deals. The data requirements are minimal and allow the use of all mergers and acquisitions during 1992–2009 (more than 300,000 deals). The results provide evidence of learning gains through repetitive acquisitions, especially under CEO continuity and when successive deals are more similar.     

Information from Relationship Lending: Evidence from Loan Defaults in China

Using a proprietary database from a large Chinese state‐owned bank, we examine whether information evolved from banking relationships predicts commercial loan default by industrial firms. We find that the bank's relationship information is significantly linked to the incidence of default, and that its contribution to prediction accuracy is larger than any hard information. Furthermore, the effect of relationship information is stronger among firms that have a more sustained banking relationship. Our findings indicate that, at least in the emerging markets, a bank's relationship information still matters for large firms, despite the fact that hard information for such firms is abundant.     

Do Insiders Learn from Outsiders? Evidence from Mergers and Acquisitions

I find that the market reaction to a merger and acquisition (M&A) announcement predicts whether the companies later consummate the deal. The relation cannot be explained by the market's anticipation of the closing decision or its perception of the deal quality at the announcement. Merging companies appear to extract information from the market reaction and later consider it in closing the deal. Furthermore, the relation varies with deal characteristics, suggesting that companies seem to have a higher incentive to learn from the market when canceling the announced deal is easier or when the market has more information that the companies do not know.     

Do corporations learn from mispricing? Evidence from takeovers and corporate performance

In this article we form the simple prediction that mispricing encourages traders to collect costly information that guides managerial decisions at corporate level. Our findings support this prediction based on evidence derived from both the US market for corporate control and the overall variation in aggregate corporate profits. The trading activity in response to the temporary mispricing of the merging companies provides useful information that leads to the design of high-synergy deals. Such synergies are reflected in an increase in the announcement period acquirer abnormal returns and are not reversed in the long-run. At the market-wide level, our results suggest that the growth in the overall stock trading volume in response to market mispricing is associated with high future corporate profit growth. Overall, after controlling for several economic and financial conditions, the temporary mispricing in a developed and generally efficient stock market stimulates informative trading, ultimately leading to value- and performance-enhancing corporate decisions.     

Learning from a Keynote speaker: Lessons from Merton Miller's PACAP addresses

For 10 of its first 11 years, Professor Merton Miller served as the Keynote speaker for the PACAP conference. This article reviews and synthesizes Professor Miller's remarks. His Keynote Addresses were wide-ranging and covered such topics as index arbitrage, stock market bubbles, portfolio insurance, regulation of financial markets, derivatives, capital controls and others. The connecting theme of Professor Miller's Addresses was his unyielding belief that capital markets, especially when unfettered by regulation, can and do play a critical role in facilitating economic growth and opportunity. He coupled that theme with a call for PACAP and its members to contribute to that growth and, thereby, to the well-being of the people of the Pacific Basin countries.