Effects of Risk-Based Capital Requirements and Asymmetric Information on Banks' Portfolio Decisions

This paper examines if asymmetric information about earnings prospects caused low-capital banks to reduce assets rather than raise capital between 1989 and 1992, the transition period from the leverage ratio to the risk-based capital requirement. The measure of asymmetric information here is the residual of an earnings prediction model based on publicly available information. If managers are significantly better informed than outside investors, a large residual indicates that inside information is more favorable and that the bank's stock is undervalued. The empirical results show an insignificant effect of asymmetric information on banks' portfolio decisions.     

Does fiscal decentralization affect local governments' strategic behaviours? Evidence from South Korea

Local governments tend to show strategic behaviours when making their spending decisions. However, few studies have examined strategic behaviours when promoting fiscal decentralization. Thus, this study empirically examines the presence of strategic interactions in expenditure decisions in South Korea as well as how fiscal decentralization affects those interactions, using a panel data set from 2010 to 2017. The results demonstrate that a local government mimics other governments' spending when those governments' residents share similar age demographics. Moreover, local governments in South Korea engage in strategic interactions as their expenditure side becomes more decentralized. However, local governments tend to demonstrate less isomorphic behaviour in welfare spending decisions when they have higher revenue decentralization. This is because local governments have no motive to emulate other welfare policies, as the central government delegates the provision of social services to local governments by providing grants with strings attached.     

Envirox™ fuel-borne catalyst: Developing and launching a nano-fuel additive

The paper presents a product case study tracing the challenges of commercialization from research and product development to market launch. Envirox™ is a diesel fuel additive containing nanoparticles of cerium oxide, which enables fuel efficiency gains alongside reductions in harmful emissions such as black carbon (soot). The case traces developmental stages from lab experimentation and performance data sets, to raising finance, securing manufacturing capability and market testing in Hong Kong and the UK. The paper raises a number of generic and specific issues facing innovative small, university spin-out companies engaged in introducing nano-products to the market-place.     

Digital identity: How users value the attributes of online identifiers

This paper examines online identifiers from an economic perspective. It uses conjoint analysis survey techniques to develop empirical data on how users value the attributes of online identifiers. It is concerned in particular with three issues: (1) the degree to which identified subjects value increasing the scope of an identifier, i.e., the ability to use a single identifier to access services offered by several organizations; (2) the degree to which users’ choice may be constrained by switching costs; and (3) the value individuals place on privacy and data security relative to other attributes such as cost or scope. The survey population was located in South Korea. The results indicate that e-mail addresses dominate the world of online identifiers for ordinary consumers; that consumers highly value increased scope (e.g., single sign-on capabilities) and the security of their private data; and that switching costs are high.     

RAM: A Range Adjusted Measure of Inefficiency for Use with Additive Models,and Relations to Other Models and Measures in DEA

Generalized Efficiency Measures (GEMS) for use in DEA are developed and analyzed in a context of differing models where they might be employed. The additive model of DEA is accorded a central role and developed in association with a new measure of efficiency referred to as RAM (Range Adjusted Measure). The need for separately treating input oriented and output oriented approaches to efficient measurement is eliminated because additive models effect their evaluations by maximizing distance from the efficient frontier (in ₁, or weighted ₁, measure) and thereby simultaneously maximize outputs and minimize inputs. Contacts with other models and approaches are maintained with theorems and accompanying proofs to ensure the validity of the thus identified relations. New criteria are supplied, both managerial and mathematical, for evaluating proposed measures. The concept of approximating models is used to further extend these possibilities. The focus of the paper is on the physical aspects of performance involved in technical and mix inefficiencies. However, an Appendix shows how overall, allocative and technical inefficiencies may be incorporated in additive models.     

Evidence of latecomers’ catch-up in CoPS industries: a systematic review

ABSTRACT

There has been a controversial issue in existing literature regarding whether latecomers can catch up in Complex Products and Systems (CoPS) industries. In an attempt to address this issue, we employ systematic review method and analysed 39 previous studies. We found substantial evidences of catch-up or leapfrogging in CoPS industries. The catch-up patterns in the CoPS industries were similar to those in the mass-produced goods sectors. There were 15 success or failure factors for catch-up across CoPS industries, and the top five most frequently appeared factors were government support, technology transfer, in-house R&D, industry ecosystem or cluster, and external alliances.