The significance of trust and renqing in the long-term orientation of Chinese business-to-business relationships

While business relationships with China are receiving increased attention in both practitioner and academic discourse, very little empirical work however, has been undertaken to isolate and examine measures that focus on business-to-business relationships, and as such, research in this area is somewhat scant. In an attempt to bridge this gap, and add to the knowledge in this emerging discipline, the research aims to develop a conceptual framework to explore the relationship between trust and the long-term orientation in Chinese business-to-business market relationships. Based on a survey with Hong Kong companies that have a buyer-seller relationship with Chinese companies, the empirical findings indicate the mediating role and significance of ‘renqing’ for enhancing trust and contributing towards the long-term stability in relational exchange. The results highlight several implications for practicing managers to consider when aiming to establish and develop relationships in a Chinese business-to-business context.     

Can the PRC’S new anti-monopoly law stop monopolistic activities: Let the PRC’S telecommunications industry tell you the answer

A new PRC Anti-Monopoly Law (AML) was enacted on August 30, 2007 and took effect on August 1, 2008. The new AML is a milestone in Chinese economic policy. It will reorganise the competition paradigm in many Chinese domestic sectors.     

Optimality for controlled jump processes: a simple approach

Summary This note presents a very simple method for deriving the necessary optimality conditions for optimal control of jump (point) processes. By means of Bellman's principle of optimality, the original stochastic control problem is transformed into a simple optimization problem. The derivation is remarkably simpler than the existing ones in the literature.I am grateful to the referee for many useful comments and suggestions. This research was supported in part by the Bradley Foundation and the Hewlett Foundation.     

Voluntary Disclosure by State-owned Enterprises Listed on the Stock Exchange of Hong Kong

This study examines the impact of international capital market pressures on the voluntary disclosure of three types of information (strategic, financial, and non-financial) in the annual reports of former wholly state-owned People's Republic of China (PRC) enterprises, listed on the Stock Exchange of Hong Kong (SEHK). Consistent with a cost­benefit framework, we find that PRC H-Share firms disclose significantly more strategic and financial information than other SEHK firms. Additional analysis of disclosures in their home listings on the PRC exchanges, however, suggests an alternative explanation. The fact that these firms have been selected for "showcasing" in international capital markets may also play a role in our findings. While H-Share firm disclosures in the PRC also appear sensitive to management's assessment of the associated costs, the magnitude of differences across listing locations suggests that disclosure practices on the SEHK may also reflect the effects of state-encouraged disclosure policies. Our findings contribute to the understanding of disclosure behavior among former wholly state-owned enterprises and to the emerging literature on the efficacy of the privatization process.     

Carcinoid of the intrahepatic ducts

Carcinoid tumors of the biliary tree are rare. To the best of our knowledge, this is the first reported case of an intrahepatic ductal carcinoid and the thirteenth reported case of biliary carcinoid. The radiographic appearance is variable. A brief review of the previously described cases is presented.     

AN ECONOMIC APPRAISAL OF SECURITIZING INSURANCE RISK VIA ONSHORE SPECIAL PURPOSE VEHICLES

ABSTRACT: The increased risk from natural disasters in the United States has prompted innovations in alternative forms of risk transfer and financing. Among the mechanisms that have been developed are Special Purpose Reinsurance Vehicles (SPRVs) designed to hold and segregate funds supporting a risk securitization. SPRVs have been principally formed outside the United States for tax and regulatory reasons. The National Association of Insurance Commissioners (NAIC) and the states are considering proposed model legislation that will facilitate the formation of SPRVs in the United States. Proponents also will be seeking federal tax legislation that will facilitate onshore securitization. This article examines important economic and tax issues involved with onshore SPRVs. The authors conclude that properly regulated onshore securitization vehicles could aid the diversification of high-layer catastrophe risks and other risks with similar characteristics. The proposed tax changes may create a modest inequity between special purpose vehicles and traditional reinsurers, depending on one's perspective. However, if governed by an appropriate tax and regulatory framework, onshore securitization used for appropriate purposes should benefit consumers and not erode the demand for conventional reinsurance for the types of risks it is best suited to manage.     

The Roles of Justice and Customer Satisfaction in Customer Retention: A Lesson from Service Recovery

Customers complain because they want to be treated fairly by the company when a service failure occurs. The role of perceived complaint justice and its relation to customer satisfaction has been discussed and researched. However, a static view is mostly adopted in previous literature. We argue that satisfaction is cumulative and both prior satisfaction and post-recovery satisfaction should be looked at in relation to complaint justice in the context of service recovery. This study attempts to fill the gap by investigating the mediating role of justice in the relationship between prior satisfaction and post-recovery satisfaction (both with the recovery and with the organization) and examining the mediating role of post-recovery satisfaction in the relationship between the dimensions of justice and customer retention. Hypotheses were tested using a sample of 200 customers that had service failure experience at Chinese restaurants in Hong Kong. Justice dimensions (distributive justice, procedural justice, and interactional justice) were found to fully mediate the relationship between prior satisfaction and satisfaction with recovery. All dimensions, except the interactional justice, were also found to be partial mediators in the relationship between prior satisfaction and post-recovery satisfaction with organization. Findings also revealed the mediating roles of two post-recovery satisfaction variables in transferring the justice dimensions into behavioral intention, with the two variables playing almost opposite roles. Discussion and recommendations are provided for future development and improvement in building long-term relationship with customers.     

On the calibration of mortality forward curves

In 2007, a major investment bank launched a product called “q‐forward,” which may be regarded as a forward contract on a mortality rate. The pricing of mortality forwards is similar to the pricing of other forward‐rate contracts, such as interest‐rate forwards or foreign exchange forwards. In particular, since investors require compensation to take on longevity risk, the forward mortality rate at which q‐forward contracts will trade will be smaller than the expected mortality rate. The relationship between the forward rate and the time to maturity is called a mortality forward curve. In this study, we contribute a method for calibrating mortality forward curves. This method consists of two parts, one of which is the generation of the distribution of future mortality rates, and the other of which is the transformation of the distribution into its risk‐neutral counterpart, using the idea of canonical valuation developed by Stutzer, M. ( 1996 ). To illustrate the method, mortality forward curves for English and Welsh males are calibrated. © 2010 Wiley Periodicals, Inc. Jrl Fut Mark     

钟表巨献,时间轨迹

刚刚过去的第19届日内瓦国际高级钟表展,共有17家品牌亮相,其中首次参加本届展览的两家品牌分别是拉尔夫劳伦(Ralph Lauren),以及瑞士钟表工业联合会(FSWI)。虽然今年的展期较往年提前,参观人数较往年也略有下降,但风采不输以往。媒体关注和交易金额再创新高,充分显示了在当今全球经济环境并不景气的背景下,高级腕表工业并未受到冲击。