Is the expected utility maximization hypothesis refutable by finite market data: The case of two observations

It is shown that with only two observations on the asset demand functions of an investor, it is not possible to refute the hypothesis of expected utility maximization on the part of the investor as long as the axioms of revealed preference are satisfied.     

Enterprise ownership and control in China: Governance with a Chinese twist

Inefficient state-owned enterprises in China were compelled to restructure to remain competitive, which resulted in phenomenal economic growth. While economically successful, China did not initially have any indigenous laws to regulate companies or control this growth, so Chinese lawmakers had to transplant corporate laws from developed Western countries. However, this transplantation process did not occur without problems, and certain domestic attributes had to be supplemented in corporate legislation to correspond with Chinese socialistic objectives and cultural values. This article analyzes the key attributes of Chinese corporate governance and regulations concerning shareholders’ rights and, in the process, highlights provisions that are peculiar and characterized as uniquely Chinese, ultimately raising more questions than answers for shareholders.     

Wages Pressures

Wages are rising in China. In order to assess the scope of wage adjustments, the influence of minimum wage hikes and labour unions,and the magnitude of labour productivity improvements,we carried out surveys of clients of Standard Chartered Bank(China) over the past month.We spoke to Hong Kong manufacturers operating in the Pearl River Delta(PRD);Taiwan companies operating outside of Shanghai;and companies operating in Chongqing,in south western China.Our main findings are as follows:·Wages are up 9-15%t...     

Production Relocation: Choice Versus Satisfaction Factors: A Preliminary Study

ABSTRACT

This article examines the satisfaction level of production relocation of export oriented firms. We introduce a conceptual model, by incorporating the Expectancy Disconfirmation Paradigm (EDP) model and the Perception model, and use Hotelling T² statistics and paired t-test to measure management's satisfaction levels toward production at the relocated location. Most of the extant literatures focus on the choice decision of production relocation; this report, however, focuses on the manufacturer's satisfaction level toward the selected location. While location choice is an ex ante analysis, satisfaction analysis is an ex post analysis on production relocation. Findings of the study show that among the 20 location factors, political stability and sufficient industrial engineers are the best predictors of electronics manufacturers' satisfaction on production relocation. A firm may consider relocating the production again if dissatisfaction grows. This may explain, at least partly, the international movements of production relocation during the past decades.     

Selection attributes of wedding banquet venues: An exploratory study of Hong Kong prospective wedding couples

Despite the significant contribution of the wedding business to the hospitality industry, few studies of wedding banquet venues have been conducted. This study aimed to investigate the perception of Hong Kong prospective wedding couples of the importance of venue selection attributes. Among the 25 venue attributes identified, employee attitude was viewed by the 205 respondents as the most important, followed by cleanliness and food quality. Among the 11 extrinsic and intrinsic personal attributes, first impression was the most influential while an auspicious wedding date was the least. Marketing strategies are recommended to industry practitioners on the basis of the findings.     

It’s only words: idiom processing,language knowledge and consumer memory of Chinese print advertisements

This study investigated the effects of employing Chinese idioms in headlines on consumer memory. The results indicated that, as hypothesized, the use of idiomatic headlines in print advertisements produced superior aided recall of headlines and recognition of brand names than employing non-idiomatic headlines. High language knowledge individuals also had greater aided headline recall and brand name recognition. However, this knowledge advantage was only observed for advertisements with idiomatic headlines. Aided headline recall generally mediated brand name recognition. Finally, the language knowledge results were robust across different knowledge measures.     

Still on hold? A retrospective analysis of competitive implications of the Telecommunication Act of 1996, on its 10th year anniversary

This study provides a retrospective analysis exploring competition in the US telecommunication industry, a decade after passage of the highly deregulatory Telecommunications Act of 1996. Using history as a guide, it reviews recent merger activity facilitated by the Act, profiles the present state of concentration in cable and telephony and explores prospects for cross-media competition permitted by the Act.     

Where We Are with CNY Invoicing

It ain＇t easy replacing the US dollar. Some see the Chinese yuan （CNY） as the imminent replacement of the US dollar （USD） as the world＇s dominant reserve currency. However, those involved in the CNY＇s first forays overseas as a means of invoicing and payment for cross-border trade have known from the start that this process will take some time. Nine months into the CNY trade settlement pilot scheme, this seems like a good time to report on the progress and examine the outstanding challenges.     

The use of on-line summative assessment in an undergraduate financial accounting course

According to the Quality Assurance Agency [QAA (2006). Section 6: Assessment of students, Code of practice for the assurance of academic quality and standards in higher education. <http://www.qaa.ac.uk/>. Accessed 14.03.2007] “Assessment describes any processes that appraise an individual’s knowledge, understanding, abilities or skills” and is inextricably linked to a course or programme’s intended learning outcomes. Assessment also has a fundamental effect on students’ learning where it serves a variety of purposes including evaluation, feedback and motivation. Assessment also provides a performance indicator for both students and staff. Computer-aided assessment (CAA) offers an option for “sustainable assessment” and provides opportunities for creating innovative assessment practices that help engage students and increase their motivation for learning. This paper reports the findings of a qualitative study where a series of on-line summative assessments were introduced into a first-year financial accounting course. Feedback from students obtained from an evaluative survey and focus group interviews indicates that assessment played a significant role in the teaching/learning process. That is, students perceived a beneficial impact on learning, motivation, and engagement.     

Do REITs Manipulate Their Financial Results Around Seasoned Equity Offerings? Evidence from US Equity REITs

This study addresses two questions: Is there earnings management in the REIT industry around seasoned equity offerings (SEO)? How is earnings management affected by financial and governance factors? Discretionary accruals methods are used to measure earnings management. In addition, the difference between actual and calculated FFO is used to capture the potential FFO manipulation. We examine how these manipulation measures change in the five quarters around SEOs. Moreover, we investigate how a REIT’s earnings management decision is affected by its financial structure, operating style, external auditor and corporate governance. We find clear evidence of FFO manipulation around SEOs, but the extent of earnings management is relatively weaker. We find that REITs issuing SEOs more often are more aggressive in manipulating FFO than earnings. Moreover, there is a notable difference between these two types of financial results manipulation. A mean-reversion trend is found in discretionary accruals, but not for FFO manipulation. Manipulation in financial results is influenced by various factors. A diminished capability to generate cash flow, high leverage, volatile cash flow, frequent SEOs and slack corporate governance are all the features of REITs more likely to manipulate financial results.