The Effectiveness of Capital Regulation on Bank Behavior in China

This paper examines the impact that ownership and governance structures have on how Chinese banks react to regulatory pressure. We find that the current regulatory regime induces banks to increase their capital, but its effectiveness in doing so varies based on whether the bank is listed or not, and also who is the majority shareholder. We also find that the degree of central government ownership and the political ties the chief executive officer of the bank has play an important role in the risk‐taking behavior of banks. Overall, our results have a number of policy implications supporting the need to further reduce state ownership of banks in China to mitigate the prevailing moral hazard and dual‐agency problems that arise from the government being both the regulator and the majority shareholder.     

The product development process of an enterprise from an SSME perspective

This study empirically explores a real-world manufacturer product development process from a service science perspective. In this era of keen global competition, the process of product development is crucial for companies before the final product is launched to the market. The poor development of a product can fail to meet customer needs and result in product failure, which can even lead to significant losses for manufacturers. However, traditional product development processes are much more manufacture-oriented rather than customer-involved. In this paper, we aim to use the Service science, management, and engineering (SSME) perspective, proposed by IBM, to improve product demand asymmetries by discovering true user requirements in order to enhance customer involvement and lead to better product development. We show how SSME is applied in the context of product development and in the discovery of customer needs, and propose a modified process based on SSME to the product development process.     

Determinates of financial behavior: insights into consumer money attitudes and financial literacy

As consumer requirements for financial services permeate society, they link various financial institutions more closely together, developing divergent financial products. This research develops a conceptual framework for discussing consumer money attitudes, financial literacy regarding financial decisions, and financial behavior. Study findings suggest that consumers who have retention-planning and achievement-esteem attitudes toward money make high-risk financial decisions; anxiety toward money tends to exist mainly in low-risk investors. Financial literacy affects consumer financial behaviors, and demographic variables play segmentation roles. Theoretical contributions and management implications are provided in the study for related research, education departments and financial firms.     

On the rate of convergence of binomial Greeks

This study investigates the convergence patterns and the rates of convergence of binomial Greeks for the CRR model and several smooth price convergence models in the literature, including the binomial Black–Scholes (BBS) model of Broadie M and Detemple J ( 1996 ), the flexible binomial model (FB) of Tian YS ( 1999 ), the smoothed payoff (SPF) approach of Heston S and Zhou G ( 2000 ), the GCRR‐XPC models of Chung SL and Shih PT ( 2007 ), the modified FB‐XPC model, and the modified GCRR‐FT model. We prove that the rate of convergence of the CRR model for computing deltas and gammas is of order O(1/n), with a quadratic error term relating to the position of the final nodes around the strike price. Moreover, most smooth price convergence models generate deltas and gammas with monotonic and smooth convergence with order O(1/n). Thus, one can apply an extrapolation formula to enhance their accuracy. The numerical results show that placing the strike price at the center of the tree seems to enhance the accuracy substantially. Among all the binomial models considered in this study, the FB‐XPC and the GCRR‐XPC model with a two‐point extrapolation are the most efficient methods to compute Greeks. © 2010 Wiley Periodicals, Inc. Jrl Fut Mark     

Approach and avoidance motivations in response to being envied at work and their effects on proactivity

The goal of the present study is to provide a deeper analysis of the envy-proactivity link. Drawing upon regulatory theories and Smith's model on envy appraisal, we theorize that when envied individuals focus on the potential negative impact of envy on themselves, they adopt avoidant coping strategies, which hinder proactivity, whereas concern toward others stimulates approach-motivated coping strategies, which foster proactivity. Specifically, our model operationalizes a parallel mediating mechanism between perceptions of being envied and proactivity via the serial mediation of self-oriented concern and distancing, and other-oriented concern and courtesy. Results from a multi-source survey confirm that being envied indirectly decreases proactivity via the serial mediation of self-oriented concern and distancing, and indirectly increases proactivity via other-oriented concern and courtesy.     

Does a Friendly Hotel Room Increase Senior Group Package Tourists' Satisfaction? A Field Experiment

This study uses a field experiment to investigate whether senior-friendly facilities in a hotel affect the satisfaction levels of senior tourists. This research also identifies the staff explanation effect with respect to tourists' satisfaction. A field experimental design was applied to examine the senior tourists' satisfaction with the group package tour. Senior-friendly attributes were obtained from the literature reviews, three focus groups, and in-depth interviews. Hotel rooms with senior-friendly facilities were designated as the first experimental group and senior-friendly rooms with staff explanation were designated as the second. A total of 397 valid questionnaires for senior group package tourists were retrieved. The results indicate that a room with facilities could significantly increase customers' satisfaction with respect to cleanliness, comfort, decoration, illumination, overall satisfaction, and room recommendation. However, staff explanation did not further increase or influence customers' satisfaction for a room with friendly facilities.     

Disappointment and the Optimal Insurance Contract

This paper studies the optimal insurance contract under disappointment theory. We show that, when the individuals anticipate disappointment, there are two types of optimal insurance contract. The first type contains a deductible and a coinsurance above the deductible. We find that zero marginal cost is just a sufficient but not a necessary condition for a zero deductible. The second type has no deductible and the optimal insurance starts with full coverage for small losses and includes a coinsurance above an upper value of the full coverage.     

Dynamic Use Diffusion Model in a Cross‐National Context: A Comparative Study of the United States,Sweden, and India

This study proposes a model of dynamic use diffusion that serves as a basis for investigating post‐adoption technology‐usage behavior. Dynamic use diffusion measures the extent to which technology usage has evolved since the time of adoption. Herein, antecedents and consequences of dynamic use diffusion are investigated. A large‐scale, random sample survey was conducted in the United States, Sweden, and India on the use of Internet and computing technology. The survey results suggest that while the antecedents of dynamic use diffusion are similar across the three countries, the consequences are somewhat different for India. These differences can be attributed to the national cultural differences of India compared with the United States and Sweden with regard to power distance beliefs.     

How can corporations adopt Confucianism in business practices? Two representative cases

Ethics is one of the oldest scholarly topics, whether in Eastern Confucianism, Daoism, and Buddhism, or Western Deontology, Utilitarianism, and Virtue Theory, among others. Traditional ethics focuses on providing guidelines for behavior at a personal level. However, business ethics focuses more on corporations, with related studies addressing why corporations should practice social responsibility and embed ethics in business practices. Applying ethics to firms requires a variety of considerations in many areas. This is especially the case in Confucianism, which emphasizes self‐cultivation, self‐reflection, and self‐discipline. This study investigates two modern representative cases of Confucian firms and observes how they integrate Confucianism into their business practices. It finds that despite the prevalence of a complex environment, Confucianism can still be adopted by them if they use certain methods. Besides, we also identify the common outcomes across these companies. These findings provide a reference for companies that want to incorporate Confucianism in their operations.