Double signals or single signal? An investigation of insider trading around share repurchases

We examine directors’ dealing activity around share repurchasing periods in Hong Kong. There are significant insider trading activities before the share repurchasing period. Consistent with the signaling hypothesis, the directors’ purchase activities during the share repurchase period are significantly higher than the expected level while the directors’ sale activities are significantly lower than the expected level. Double signals of share repurchase and directors’ purchases create a stronger signal in conveying undervaluation, while insider sales around share repurchase reduces the undervaluation signal. We find some evidence that is consistent with the free cash flow and signaling arguments for share repurchases.     

The entry and exit decisions of foreign banks in Hong Kong

This paper presents a theoretical framework for explaining the entry and exit decisions of a firm, motivated by the differential returns in its home and a host market. Within this framework, the factors underpinning the entry and exit decisions of foreign banks in Hong Kong are examined, using a duration (accelerated failure time) model. It can be seen that a foreign bank, with international experience from having more overseas markets will take a shorter (longer) time to enter (exit) the Hong Kong market. Faster (slower) growth both in home trade with Hong Kong and in the Hong Kong banking sector itself will increase the likelihood of entry (exit). Ceteris paribus, Asian banks enter at a faster rate and survive longer in the Hong Kong market. Copyright © 2008 John Wiley & Sons, Ltd.     

The performance of enhanced-return index funds: evidence from bootstrap analysis

We apply the bootstrap technique proposed by Kosowski et al. [J. Finance, 2006, 61, 2551–2595] in conjunction with Carhart's [J. Finance, 1997, 52, 57–82] unconditional and Ferson and Schadt's [J. Finance, 1996, 51, 425–461] conditional four-factor models of performance to examine whether the performances of enhanced-return index funds over the 1996 to 2007 period are based on luck or superior ‘enhancing’ skills. The advantages of using the bootstrap to rank fund performance are many. It eliminates the need to specify the exact shape of the distribution from which returns are drawn and does not require estimating correlations between portfolio returns. It also eliminates the need to explicitly control for potential ‘data snooping’ biases that arise from an ex-post sort. Our results show evidence of enhanced-return index funds with positive and significant alphas after controlling for luck and sampling variability. The results are robust to both stock-only and derivative-enhanced index funds, although the spread of cross-sectional alphas for derivative-enhanced funds is slightly more pronounced. The study also examines various sub-periods within the sample horizon.     

Students,Patients, Citizens,and Believers as “Customers”: A Cross-National Exploratory Study

ABSTRACT

Executives in 94 large UK companies engaging in cause related marketing (CRM) completed a questionnaire concerning (i) their firms' approaches to the management and evaluation of CRM, (ii) the benefits perceived to accrue to the practice, and (iii) whether these businesses applied commercial rather than philanthropic principles when selecting CRM partners. It emerged that, in general, the sample firms employed mainly commercial criteria when choosing CRM projects, that selections were frequently influenced by employee opinion, and that most of the evaluation techniques conventionally used to appraise commercial sponsorship and advertising were also utilised to assess CRM programmes. Companies were reported to demand close and obvious links between their products and the activities of partner charities. Typically, they preferred to affiliate with well-known charities and tended to dislike “controversial” causes. In the main the respondents held low opinions of their charity partners' marketing abilities. The article concludes with a number of recommendations regarding the ways in which charities should formulate proposals when inviting businesses to participate in CRM programmes.     

Outward Foreign Direct Investment by Chinese National Oil Companies

Developed countries have become increasingly suspicious about the rapid growth of Chinese investments in their home countries and abroad, commonly citing potential threats to national security and global governance as the main sources of anxieties. As a result, policy measures in some developed markets have been put in place to create additional regulation and oversight, specifically in highly regulated and strategic industries, such as the oil sector. This article refutes a number of popular myths about Chinese investments in the global oil industry, and suggests a more rigorous dialogue with the Chinese authorities relating to their integration into international institutions.     

Factors Affecting Outbound Tourists' Destination Choice: The Case of Hong Kong

Trip expenditure, length of stay during the trip, size of the travel party, monthly household income, discovering new places and/or things, and getting away from daily routine, role, obligation, stress and troubles have significant influence on Hong Kong residents' destination choice. Hong Kong residents' destination choice is highly associated with trip characteristic in comparison to socio-demographics and travel motivation factors. Destinations close to Hong Kong can focus on packaging their products with shorter trip lengths and making the packages attractive to travel companions in addition to the travelers. Destinations that are relatively far away from Hong Kong should focus on packaging their products to attract the Hong Kong outbound travelers with longer trip lengths and plan activities that cater to individual needs.     

Temporal Changes of Airfares Toward Fixed Departure Date

Despite the existence of numerous published articles that examined the online fares for air-tickets, no prior studies have investigated the issue of temporal changes of airfares toward a fixed departure date. In other words, consumers have no knowledge of when the best time is to purchase their lowest fared air-tickets from the Internet. This study investigated the daily changes of fares for return air-tickets on five online travel agency (OTA) websites with fixed dates of departure during shoulder and high seasons. Empirical findings showed the lowest airfares from Hong Kong to Beijing and Bangkok, representing two most popular short-haul travel destinations, were not found at the initial stage of the data collection period. In other words, consumers should not make online purchase of air-tickets too early.     

Residents' Perceptions Toward the “Chinese Tourists' Wave” in Hong Kong: An Exploratory Study

Mainland China experienced an extraordinary progress in its economy in the past two decades which directly stimulates more outbound travels. Considering the geographical proximity and political ties between Hong Kong and Mainland China, the share of inbound tourists to Hong Kong has been, and will continuously be, largely occupied by Mainland Chinese tourists on an uprising basis. The phenomenon of the “Chinese tourists' wave”, operationalizing as the influx of tourists from Mainland China, has brought tremendous change on Hong Kong's tourism industry, economy and local community. It is, thus, of necessity to understand the perceptions and response toward this phenomenon from local residents' perspective as they are the stakeholders of local tourism. Drawing on the findings from three focus group interviews with 18 Hong Kong residents, three conventional dimensions, namely “Economic”, “Social-cultural” and “Environmental” were identified and discussed to demonstrate the local residents' perceptions toward the impact of “Chinese tourists' wave” phenomenon. Generally, residents tend to recognize the positive economic impacts as well as negative social–cultural and environmental impacts generated from this tourism phenomenon. The recommendations suggested in this study also serve as a reference for tourism authorities concerned to redress the existing problems.     

Hotel Employees' Perception of the Statutory Minimum Wage Policy in Hong Kong

Employee compensation is one of the largest expenses for businesses. Given the labor-intensive nature of the hotel industry, hotel employees' perceptions of the statutory minimum wage (SMW) policy have become a major concern for hotel operators since the introduction of the policy in Hong Kong. This exploratory study examines these perceptions, together with hotel employees' job and compensation satisfaction and intention to leave, since the introduction of the SMW policy. A survey of 161 hotel employees in Hong Kong was carried out. Respondents demonstrated high awareness of the SMW policy but viewed its effect on the hotel industry as limited. The largest gap between the perceived importance of, and satisfaction with, a factor related to job satisfaction was found for the benefits package. As well as making a contribution to the academic literature, this study provides practical implications of the SMW policy for the hotel industry in Hong Kong and other countries considering adopting a similar measure.     

Robustness of Distance Decay for International Pleasure Travelers: A Longitudinal Approach

Distance decay explains tourism demand in terms of destination distance from the origin. Although travelers tend to travel further over time, scant research studies have examined the relationship between temporal variant and distance decay. This study examines the relationship between distance and destination choice of Hong Kong international pleasure travelers’ activity over a decade. A constant pattern of distance decay with two secondary peaks was identified for a decade. This study suggests a threshold of a three‐hour flight for a five‐day trip before demand declined exponentially. The findings imply that the no traveling zone would result from weak pulling power. Copyright © 2011 John Wiley & Sons, Ltd.