The effect of the recent insider-trading scandal on stock prices of securities firms

This paper addresses the impact of the unethical business conduct of a few individuals that shook the financial market in 1986. Specifically, in the study undertaken for this paper, the wealth status of the shareholders of securities firms was examined in relation to the public disclosure of the insider-trading scandals involving Dennis Levine, Ivan Boesky, and their confederates. It was hypothesized that the expected market-adjusted stock returns for the securities firms would be negative as a result of the scandals. The findings of the study supported the hypothesis. Khalil M. Torabzadeh is Associate Professor of Finance at Radford University in Virginia. He earned his DBA in Finance from Mississippi State University in 1984. He began his teaching career at Appalachian State University, Boone, North Carolina, in 1982, and joined the faculty of Radford University in 1985. He has had articles published in the Journal of Financial Research and the Journal of Applied Business Research. Dan Davidson is Professor of Business Law at Radford University in Virginia. He has five teaching awards, including the Razorback Outstanding Business Faculty Award from the University of Arkansas. He is the author of four textbooks published by PWS Kent Publishing Co., and his articles have been published in the Journal of Business Ethics, the Business Law Review, the Education Forum, and the Journal of Insurance Issues and Practices, among others.Hamid Assar is an Assistant Professor of Finance at Radford University in Virginia. His educational background includes a PhD in Financial Economics (expected in 1989) from Southern Illinois University, an MBA from Central State University in Oklahoma, and a Masters degree in Economics from the University of West Virginia. His research interests are in the areas of mergers and acquisitions, financial markets, and international finance.     

The impact of crude oil inventory announcements on prices: Evidence from derivatives markets

This study examines the impact of weekly crude oil storage announcements on oil futures and options prices. We document evidence of a strong announcement day effect on both markets, and find prices to move in anticipation of the inventory surprise. Futures returns significantly decrease with positive surprises and increase with negative surprises. There is no evidence of an asymmetric impact on futures prices. Near‐the‐money options exhibit the greatest price sensitivity, and the magnitude of the price response of both futures and options declines with maturity. The results remain robust even after controlling for various macroeconomic and other storage‐related news variables.     

Of markets,products and prices: The effects of the euro on European firms

The introduction of the euro was initially expected to boost trade by an enormous percentage. Following many downward revisions of original estimates the current consensus estimate amounts to an increase of about 5 per cent. In view of the initial high expectations this is often seen as a dismal result. It is, however, based on aggregate data and may therefore hide important microeconomic gains that arise even for a given level of trade fl ows. This paper uses detailed product and firm level data to shed light on these hidden gains. This paper is based on the EFIGE Report 2008, issued under the same title as Bruegel Blueprint Series Volume VIII. The research leading to these results has received funding from the European Community’s Seventh Framework Programme (FP7/2007-2013) under grant agreement No. 225551 and from the Bank of France. The views expressed in this publication are the sole responsibility of the authors and do not necessarily reflect the views of the European Commission or the Bank of France. We are grateful to Andrew Fielding for editorial support. Opinions expressed in this publication are those of the authors alone.     

我国企业非市场行为影响因素的实证研究

Drawing upon the resource dependence theory, this paper examines the determinants of nonmarket behaviors in the Chinese context. Using survey data of 175 top managers in China, we test 13 firm and environment characteristics likely influencing nonmarket behaviors. Results show that a firm’s economic resources, top management orientation, and uncertainty in the nonmarket environment are significantly related to Chinese firms’ nonmarket behaviors. Translated and revised from Zhongguo gongye jingji 中国工业经济 (China Industrial Economy), 2007, (5): 104–112     

全球经济危机对中国石化和化学工业的影响与对策

恶化的世界经济已使化学工业自2007年底起进入循环周期的下行通道，预计到2011年才能回复增长。评述了世界经济危机对中国石化和化工行业以下领域的影响：化工产品生产和出口减少；在建乙烯项目将推迟投产；乙二醇、PTA和聚酯产业链发展减速；危及氯丁橡胶行业；轮胎行业掀起减产限产潮；部分装置停产或限产。并提出了相应的对策。     

The impact of domestic diversification and top management teams on the international diversification of Chinese firms

Despite increasing research on outward foreign direct investment (OFDI) by firms from emerging economies, our understanding of the relationship between domestic operations and international diversification of these firms is still limited. Using a unique dataset of Chinese listed firms, we examine the impact of domestic diversification on their international diversification. We find that international diversification is positively affected by firms’ domestic industrial and domestic regional diversification. We also find that top management team (TMT)’s previous international experience strengthens the impact of domestic diversification on firms’ international diversification, whereas TMT's prior political connections weakens the impact of domestic diversification on international diversification.     

Strategic decision making within Chinese firms: The effects of cognitive diversity and trust on decision outcomes

Basing the hypotheses on group process theory, the effects of cognitive diversity on commitment and decision quality were examined, as well as the moderating effects of cognition-based and affect-based trust on cognitive diversity and decision outcomes. Using a survey of 252 Mainland Chinese executives from different firms, it was found that cognitive diversity has a strong negative relationship with commitment and decision quality. In addition, results show that affect-based and cognition-based trust have moderating effects on cognitive diversity and decision outcomes.     

Does it transfer? The effects of pre-internationalization experience on post-entry organizational learning in entrepreneurial Chinese firms

Although organizational learning plays a critical role in the internationalization of firms, researchers have largely focused on learning that occurs after a firm’s international entry (“learning by doing”). Few studies have discussed how a firm’s experiences prior to international entry affect its organizational learning after entry. Using a sample of Chinese internationalizers, we argue that pre-entry characteristics will influence organizational learning after international entry. We argue and show that prior experience with international companies in the domestic market is transferable and does affect an organization’s post-entry learning through a mechanism called analogical reasoning or “learning by analogy.”     

The effect of corporate philanthropy on corporate performance of Chinese family firms: The moderating role of religious atmosphere

Drawing on sustainable family business theory and stakeholder theory, this study explores how corporate philanthropy affects corporate performance with the consideration of the moderating effects of religious atmosphere. Based on data of Chinese 534 listed family firms, the results show that corporate philanthropy is positively associated with corporate financial performance (CFP) and corporate social performance (CSP). Moreover, religious atmosphere negatively moderates the relationship between corporate philanthropy and CFP, but positively moderates the relationship between corporate philanthropy and CSP. Our findings provide systemic understandings of family firms' CFP and CSP by drawing important insights of corporate philanthropy and religious atmosphere.     

Global Chamions in Wating——Prospects and challenges of Chinese Automobile firms M&A activities on the world stage

In recent years,Chinese companies have accelerated their global activities in line with China's ascent as a major economic power.While some Chinese companies globalize organically,many others have pursued mergers and acquisitions (M&A) to accelerate their global presence.High-profile deals such the SAIC's 50.6% acquisition of Korea's Ssangyong in 2004,Nanjing Auto Group purchased British auto company MG in 2006,and more recent Geely Automobile Holdings acquire' Australia's Drivetrain Systems International,or DSI,the world's second largest auto transmission supplier in 2009,have introduced the world to a new generation of Chinese companies with aspirations to be global competitors.     

Who rides the tide of regionalization: Examining the effect of the China-ASEAN Free Trade Area on the exports of Chinese firms

This study draws on the institutional economics and the resource-based view to examine the impact of regional institutional changes on firm exports. Specifically, we utilize the establishment of the China-ASEAN Free Trade Area as our research context. Our difference-in-difference analysis of a four-year panel of 700 Chinese listed firms lends support to our arguments that (1) regional institutional changes aimed at increasing economic incentives for intraregional business exchanges will stimulate firm exports in the regional market and that (2) private firms, more technologically competent firms, and firms with richer regional exporting experience are affected more strongly by this institutional influence.