The effects of corporate governance compliance on market valuation in Malaysia

This study investigates the effects of corporate governance compliance on market valuation in Malaysia using a sample of 164 companies listed on the Main Board in Bursa Malaysia from 5 different industries （consumer, trading ＆ services, industrial, constructions and properties） within 2001 to 2005. Throughout, this study will use correlation and regression analysis in the SPSS software to determine the effects of corporate governance practices on Market Valuation. In analyzing firms＇ market valuation, we will use the Tobin＇s Q formula and for the corporate governance compliance, we will look at 4 criteria to compare with market valuation, which are （1） Board of Director＇s composition, （2） Board of Director＇s remuneration （salaries）, （3） Board of Director＇s training and development, （4） Board of Director＇s meeting. In order to determine the effects between the corporate governance compliance and market valuation, we will use regression analysis. Based on the correlation analysis, the first null hypothesis must be rejected and the alternative hypothesis is accepted, in which dependent variable and independent variables are significantly correlated with BOD remuneration and BOD training availability. Overall, there is a significant relationship between Tobin＇s Q and independent variables （BOD remuneration and BOD training）. This study also recommends that for the company who did not comply with the code, they should follow the best practice because it will be a pivotal weapon in facing with the fierce competition in era globalization.     

A comparison of empirical models used to infer the willingness to pay in contingent valuation

The essence of the contingent valuation method consists of creating a hypothetical market where respondents are asked about their willingness to pay (WTP) for a non-market good. Different empirical models can be formulated to estimate the expected WTP of a sample of respondents and, then, through aggregation, the social valuation of the good is inferred.This paper outlines the relevance of the distributional assumptions when estimating mean WTP. Several parametric and non-parametric methods are discussed and applied to calculate the existence value of a natural space. Results show that WTP is extremely sensitive to the empirical model used.First version received: November 2002 / Final version received: January 2004     

品牌强度的影响因素分析及评估方法研究

本文通过分析世界著名品牌价值评估方法，并结合我国品牌管理及评估行业的现状和特点，对品牌价值评估中所涉及到的品牌强度进行了研究，分析了品牌强度的影响因素，并在此基础上应用主成分分析法对品牌强度进行了度量，旨在为实践领域提供可操作性的评估方法。     

A note on parental and child risk valuation

The paper develops a model that allows the estimation of parent’s valuation of own and child health, in an endogenous risk framework, where parents can employ multiple activities to protect themselves and their children from a health risk. These risk-reducing activities may differ in their effectiveness and their intensity of use. We suggest how to estimate the parent’s ex ante marginal willingness-to-pay for a reduction in the ambient level of health risk, unencumbered by expected utility terms.

The product market opportunity loss of mandated disclosure

In the interests of protecting decision makers in the financial markets, the Securities and Exchange Commission requires publicly traded companies to publicly disclose certain accounting information. Such disclosure requirements however create a potential opportunity loss. They may destroy firms’ opportunities for implementing an alternative information acquisition and exchange regime – one that would optimize the firms’ product market profits. Nevertheless, we show that despite the previous imposition of an opportunity loss, firms may still favor future increased disclosure requirements. Finally, when information cost declines, although firms’ welfare may decrease, their desire for increased disclosure requirements always strengthens.     

The impact of the market transparency unit for fuels on gasoline prices in Germany

Increasing horizontal as well as vertical transparency in oligopolistic markets can be advantageous for consumers, due to reduced search costs. However, market transparency can also affect incentives to deviate from collusive agreements and the punishment by rival firms in the market. Using a panel of 27 European countries, we analyse the impact of increased market transparency via the introduction of a market transparency unit for fuels in Germany. Applying a difference-in-differences approach, we find evidence that both gasoline and diesel prices have increased. While consumers may be better off using a retail price app for fuels, gas stations are also able to compare prices at almost no cost.     

浅谈发出存货计价方法的选择

对存货计价问题的产生进行说明,详细介绍了5种发出存货计价方法,并且通过它们之间的比较,重点阐述了企业如何根据自己选择恰当的存货计价方法。这样,选择比较合理的发出存货计价方法,可以有效达到企业管理的目标。     

Costing the traffic barrier effect: A contingent valuation survey

When considering the environmental damage caused by road traffic, one traditionally focuses attention on the consequences of accidents, or on the impact of air and noise pollution. This somewhat narrow definition should be enlarged to capture other, more psychological nuisances. The barrier effect created by heavily travelled streets belongs to this group of nuisances, rarely described and never estimated in monetary terms. It particularly affects children, the disabled and elderly people for whom the street becomes too large to cross. In a survey carried out at Neuchâtel, Switzerland, a contingent market was proposed to suppress the barrier effect around the city centre. A valuation function to predict the bids is estimated and used to infer the annual cost of the nuisance.     

Impacts of meat product recalls on consumer demand in the USA

The impact of meat product recall events on consumer demand (beef, pork, poultry, and other consumption goods) in the USA is tested empirically. Beef, pork, and poultry recall indices are constructed from both the Food Safety Inspection Service's meat recall events and from newspaper reports over the period 1982–1998. Following previous product recall studies, recall indices are incorporated as shift variables in consumers’ demand functions. Estimating an absolute price version of the Rotterdam demand model, findings indicate that Food Safety Inspection Service's meat recall events significantly impact demand, and newspaper reports do not. Moreover, although elasticities related to recall events are significant they are small in magnitude relative to price and income effects. Any favourable effects on the demands of meat substitutes for a recall are offset by a more general negative effect on meat demand. The general negative effect indicates a shift out of meat to non-meat consumption goods.     

Monetary valuation of aircraft noise: A hedonic analysis around Amsterdam airport

In densely-populated countries and in particular in large metropolitan areas, the presence of so much human activity causes all sorts of negative externalities, for example traffic noise disturbance. These externalities call for corrective measures by the government. Economists have developed a number of procedures that provide reasonable estimates on the monetary value of some amenities and externalities. In this paper we develop a spatially-explicit hedonic pricing model for house prices in order to quantify the social cost of aircraft noise disturbance in monetary terms. While focusing on aircraft noise around Amsterdam airport in the urban fringe of the Amsterdam region, a key point in our analysis is that we account for background noise. We do this by taking multiple sources of traffic noise (i.e. road, railway and aircraft noise) into account simultaneously and by setting threshold values for all three sources of noise above which sound is generally experienced as nuisance. Based on our regression results we conclude that a higher noise level means ceteris paribus a lower house price. Air traffic has the largest price impact, followed by railway traffic and road traffic. These model outcomes can subsequently be used to estimate the marginal and total benefits of aircraft noise reduction in the studied area around Amsterdam airport. We find a marginal benefit of 1 dB noise reduction of 1459 Euro per house, leading to a total benefit of 1 dB noise reduction of 574 million Euros.     

Selling licences for a process innovation: the impact of the product market on the selling mechanism

Abstract.  This article considers the sale by a research lab of licences for a cost-reducing innovation. The marginal cost of a firm that wins a licence is private information and the acquisition of a licence imposes a negative externality on the other firms. The lab's optimal revenue is determined from a class of mechanisms in which the lab selects the number of licences and the reserve price before the sale. The role of the downstream product market in the determination of the number of licences is analyzed. Furthermore, it is also shown that the optimal reserve price may be zero.     

走出缺陷产品召回制度的认识误区

目前对缺陷产品召回制度存在一些颇具代表性的认识误区,如认为召回的发生是由于生产者不负责任才造成的.实际中,因三包就可以解决产品质量问题从而替代召回,鉴于召回成本高,可用产品责任保险和产品质量保证保险来转嫁这种风险等.导致实践中产品一经召回生产者即备受抨击的局面,对召回生产者则极力掩饰,不愿也不敢进行.严重影响了召回制度的有效实施和相关制度的进一步完善.客观而言,在现代化大生产条件下,系统性缺陷产品的产生是不可避免的.基于社会公共利益的考量,召回制度是有效消除该缺陷的唯一选择.显然,三包制度的局限性决定了它不可能替代召回制度.为化解召回风险,保险公司应加强对召回保险的研究、开发和应用.     

Reasons for the low valuation of Russian shares

This note analyses the valuation of Russian assets focusing on the market capitalization of major Russian firms trading in Moscow. It documents that valuations are very low compared to similar assets in mature economies. Several reasons are advanced to explain this phenomenon. The most important of these seems to be the poor record of Russian firms with respect to honouring shareholder rights. Some policy proposals are made to address this problem.     

Contingent valuation of inhaled insulin: a Canadian perspective

Summary

The objective of this study was to assess the preference and willingness-to-pay (WTP) for inhaled insulin from a random sample of general public perspective in Ontario, Canada. This was carried out using a mail survey using the contingent valuation method. Significantly more respondents preferred inhaled insulin (n=114) over subcutaneous insulin (n=6; p<0.001). The mean monthly WTP for inhaled insulin was CAN$68.59 ± 44.65 (95% confidence interval CAN$58.87–78.07), significantly more than the average subcutaneous insulin cost in Ontario of CAN$50. The WTP for inhaled insulin in the diabetic subgroup was CAN$98.52 ± 48.57, which is significantly higher than that of the general public (p<0.001). Multiple regression analysis showed a strong association between respondents’ income and diagnosis of diabetes and their WTP for inhaled insulin (p<0.001). Major influencing factors were convenience and household budget. The results of this study suggest that the general public in Ontario prefer inhaled insulin and are willing to pay significantly more per month than the current cost of subcutaneous insulin.     

Treating respondent uncertainty in contingent valuation: A comparison of empirical treatments

This research examines the impact of uncertainty on contingent valuation responses using (1) a survey of Canadian landowners about willingness to accept compensation for converting cropland to forestry and (2) a survey of Swedish residents about willingness to pay for forest conservation. Five approaches from the literature for incorporating respondent uncertainty are used and compared to the traditional random utility model with assumed certainty. The results indicate that incorporating uncertainty has the potential to increase fit, but could introduce additional variance. While some methods for uncertainty can be an improvement over traditional approaches, it is imperative to exercise caution when making systematic judgments about the effect of uncertainty on contingent valuation responses.     

Errors in variables and spatial effects in hedonic house price models of ambient air quality

In the valuation of the effect of improved air quality through the estimation of hedonic models of house prices, the potential “errors in variables” aspect of the interpolated air pollution measures is often ignored. In this paper, we assess the extent to which this may affect the resulting empirical estimates for marginal willingness to pay (MWTP), using an extensive sample of over 100,000 individual house sales for 1999 in the South Coast Air Quality Management District of Southern California. We take an explicit spatial econometric perspective and account for spatial dependence and endogeneity using recently developed Spatial 2SLS estimation methods. We also account for both spatial autocorrelation and heteroskedasticity in the error terms, using the Kelejian–Prucha HAC estimator. Our results are consistent across different spatial weights matrices and different kernel functions and suggest that the bias from ignoring the endogeneity in interpolated values may be substantial. This paper is part of a joint research effort with James Murdoch (University of Texas, Dallas) and Mark Thayer (San Diego State University). Their valuable input is gratefully acknowledged. The research was supported in part by NSF Grant BCS-9978058 to the Center for Spatially Integrated Social Science (CSISS), and by NSF/EPA Grant SES-0084213. Earlier versions were presented at the 5th International Workshop on Spatial Econometrics and Statistics, Rome, Italy, May 2006, the 53th North American Meetings of the Regional Science Association International, Toronto, ON, Nov. 2006, the 2007 Meetings of the Allied Social Science Assocations, Chicago, IL, Jan 2007, and at departmental seminars at the University of Illinois. Comments by discussants and participants are greatly appreciated. A special thanks to Harry Kelejian for his detailed and patient clarification of the HAC estimator. The usual disclaimer holds.     

Qualitative valuation of environmental criteria through a group consensus based on stochastic dominance

This paper introduces a qualitative valuation method to elicit stakeholders' intensities of preferences for a complex environmental issue and multiple social groups. Environmental valuation studies have shown that in any complex environment with a diversity of environmental services, stakeholders have difficulties using a monetary valuation to make trade-offs between different environmental services. Stated preference methods such as the Contingent Valuation Method (CVM) have been criticised for their individualistic format and assumptions of commensurability between environmental criteria. To alleviate both of these criticisms, we propose a qualitative valuation method. The method contains a discursive step to allow stakeholders to discuss and construct a list of environmental criteria and alternative plans. The list of criteria and plans is subsequently used by a group of experts to formulate an Impact Matrix (IM), which is to be used in the succeeding individualistic steps of the methodology. The first individualistic step consists of asking the stakeholders to rank Alternative Impacts (AIs) in the IM for each single criterion. The stakeholders are then asked to express intensities of their preferences through pairwise comparisons between the AIs of the constructed rank order on each single criterion. These intensities are expressed on a qualitative scale. Subsequently, to provide social intensities of preferences, a social preference (social rank order) is first determined for each single criterion. We propose to use the median value among the intensities of preferences as the social intensity of preference by assuming interpersonal comparability and taking into account stochastic monotonocity. This is a pre-processing step, which allows us to reach social intensities of preferences in the Lar rangeland (Iran), where several social groups have conflicting interests on rangeland services, leading to conflicting preferences on environmental criteria.     

Choice modeling at the “market stall”: Individual versus collective interest in environmental valuation

The market stall, or valuation workshop, has recently been proposed as a way of addressing some of the limitations of conventional stated preference analysis. In this paper, we attempt to combine a participatory technique similar to the “citizens' jury” with choice modelling, a stated preference technique increasingly being applied in environmental economics. Our focus is on how changes in the context of decision-making (between choices made in isolation and those made in a group setting, and between choices made on individual well being versus collective criteria) produce differences in estimated welfare measures. The empirical context used is that of water quality improvements under the Water Framework Directive, the most significant reform in water legislation in the European Union for many years. We find that the choice experiment format can be successfully implemented in a valuation workshop and that moving from individual to collective choice produces, in this instance, a rather interesting change in both values and preferences which depends on the respondent's interests.     

Currency internationalization and valuation effects: based on the threshold model

ABSTRACT

Based on the three functions of currency internationalization, including exchange medium, pricing currency and foreign reserve, this paper explores how the degree of currency internationalization affects the impact of the exchange rate and the asset price on valuation effects. Using samples of 161 countries or regions from 2001 to 2016 and the threshold regression method, we find that, firstly, there is a threshold effect of the exchange rate on valuation effects due to currency internationalization. The higher the comprehensive level of currency internationalization is, the greater the positive impact of the exchange rate on valuation effects will be. Secondly, the threshold effect of the asset price on valuation effects due to currency internationalization is not significant because of the high stickiness of asset price. Besides, compared with developed countries, currency internationalization is more important to increase valuation effects through exchange rate channel and asset price channel in developing countries or regions. Finally, there are some differences in the three types of currency internationalization functions. The promotion of exchange medium function will lead to a greater positive impact of the exchange rate on valuation effects, as well as pricing currency function. However, the foreign reserve function has no such effect.