A Study on Pollutant Emission Through Gas Consumption in the Hong Kong Hotel Industry

A survey of 11 hotels in Hong Kong was carried out to collect three years' energy consumption data. Regression analysis indicated that gross floor area was a major and statistically acceptable factor in explaining the gas consumption in new hotels. Based on past consumption data and some established pollutant emission factors, the amount of sulphur dioxides, nitrogen dioxides, carbon dioxides and particulate created by the Hong Kong hotel industry's gas usage during a 10-year period from 1989–1998 was estimated. The study predicts the increase in these amounts in 1999–2003 accompanying the rise in the number of hotels. The findings indicate that emissions will rise by nearly 40% in the next few years, requiring urgent discussions. The study also finds that a heat pump running on coal-fired electricity and with a coefficient of performance (COP) greater than 3 could produce lower level emissions than a gas-fired boiler. It is further suggested that an effective method to reduce the emissions is to substitute naptha with natural gas as the fuel for generating town gas and electricity. We believe the hotel industry should adopt a more proactive approach to reduce gas usage and propose the inclusion of environmental reporting in trade journals.     

A macro stress test model of credit risk for the Brazilian banking sector

This paper proposes a model to conduct macro stress test of credit risk for the banking sector based on scenario analysis. We employ an original bank-level data set that splits bank credit portfolios in 21 granular categories, covering household and corporate loans. The results corroborate the presence of a strong procyclical behavior of credit quality, and show a robust negative relationship between the logistic transformation of non-performing loans (NPLs) and GDP growth, with a lag response of up to three quarters. The results also indicate that the procyclical behavior of loan quality varies across credit types. This is novel in the literature and suggests that banks with larger exposures to highly procyclical credit types and economic sectors would tend to undergo sharper deterioration in the quality of their credit portfolios during an economic downturn. Lack of sufficient portfolio granularity in macro stress testing fails to capture these effects and thus introduces a source of bias that tends to underestimate the tail losses stemming from the riskier banks in a system.     

A study of biotechnology start-ups undergoing leadership change: Antecedents of change and endogenous performance consequences

One of the most important decisions that a new biotechnology firm faces is whether to replace its founding CEO, who often has been involved with the invention of the firm's core technology, with a more professional manager, who has broader commercialization skills to help the firm to grow into a viable business. In this paper, we argue that leadership change away from the founding CEO is influenced strongly by the interests of key stakeholders and that the endogeneity inherent in the change (or non-change) influences firm performance. As the context surrounding decision-making changes from pre-patent to post-IPO, key stakeholders often may not view what is best for the firm and best for self-interest in the same way. Using data on change in leadership at 135 U.S. biotechnology equipment firms, we find evidence that the context in which decisions are being made influences which of the various competing interests will take precedence. The results further confirm the importance of controlling for endogeneity in decision-making when examining firm performance.     

Using uncensored communication channels to divert spam traffic

We analyze a simple, feasible improvement to the current email system using an uncensored (open) communication channel. Such a channel could be an email folder or account, to which properly tagged commercial solicitations are routed without filtering along the way. We characterize the circumstances under which senders would voluntarily move much of their spam into the open channel, leaving the traditional email channel dominated by person-to-person mail. We then show that under certain conditions all email recipients are better off when an open channel is introduced. Only recipients wanting spam will use the open channel enjoying the less disguised messages and cheaper sale prices, and for all recipients the dissatisfaction associated with both undesirable mail received and desirable mail filtered out decreases.     

Portfolio diversification into the Asia-Pacific capital markets: A currency perspective

This paper examines the potential benefits of international investment in the Asia-Pacific capital markets. Using the viewpoints of U.S., Hong Kong and Japanese investors, the study shows that the returns from international investment within the region are more dependent upon the state of exchange rate changes. For the Hong Kong investors, despite the adopted pegged-rate between the Hong Kong dollar and U.S. dollar, the pattern of exchange returns from investing in the region resembles that of Japan rather than that of the U.S.     

Global diversification strategy and corporate profit performance

Based on a sample of 62 multinationals, this paper examines the impact of global diversification strategy on corporate profit performance by integrating the product and the international market dimensions of diversification. The results suggest that the corporate profit performance impact of related and unrelated diversification varies contingent upon the extent of a firm's international market diversification. One important lesson of this work is that both business strategy researchers and managers should review corporate diversification as having distinct yet interactive strategic dimensions—product and international market—and they would do well to recognize both the different and the joint effect of these dimensions on corporate profit performance.     

On Option-Pricing Models in Real Estate: A Critique

This paper considers the problems peculiar to options on real estate, because of the special set of institutional factors influencing real estate markets. It is intended to serve as a reply to Johnson and Wofford [15] as well as provide an overall critique of option-pricing models in a real estate context. Our major point is that a variety of real estate decisions, such as the abandonment decision, the option to refinance, or the option to exercise a contingent real estate purchase contract, may be modeled using option-pricing techniques. However, both the theoretical and institutional aspects of real estate markets must be taken into account in both developing and applying option models in a real estate context.     

The Resource Dependence, Service and Control Functions of Boards of Directors in Hong Kong and Taiwanese Firms

Since the Asian financial crisis of the late 1990's, there have been numerous calls for the reform of East Asian corporate governance. Without reform, fears abound that the crisis will return. However, a baseline understanding of corporate governance in East Asia needs to be established before reform efforts can begin. In the West, three major functions of boards are commonly recognized: resource dependence, service, and control. These functions have yet to be examined in the context of boards of directors of Overseas Chinese firms in East Asia. In this exploratory study, we examine the extent to which these functions are performed, primarily by outside board members, in Overseas Chinese firms in Hong Kong and Taiwan. We find that the service and control functions are less pronounced for East Asian boards than what would be expected in the West, while the resource dependence function is more pronounced. We also findthat the governance of the region is being moved closer to international practices by a new generation of leaders that have been exposed to Western influences and intense global competition. The implications of our findings for managers, educators, and researchers are discussed.     

A further analysis of the lead-lag relationship between the cash market and stock index futures market

The intraday lead-lag relation between returns of the MajorMarket cash index and returns of the Major Market Index futuresand S&P 500 futures is investigated. Empirical results showstrong evidence that the futures leads the cash index and weakevidence that the cash index leads the futures. The asymmetriclead-lag relation holds between the futures and all componentstocks, including. those that trade in almost every five-minuteinterval. Evidence indicates that when more stocks move together(market-wide information) the futures leads the cash index toa greater degree. This suggests that the futures market is themain source of market-wide information.     

Comparative Ethical Report Card: A Study of Australian and Canadian Manager's Perceptions of International Marketing Ethics Problems

This research study sought to identify and categorize international marketing ethical problems that confront business managers in Australia and Canada. The study focused on ten major ethical problems developed from previous exploratory research. Managers from both countries indicate that the most frequently cited ethical problem is "gifts/ favors/entertainment" and the most important ethical problem is "large-scale bribery". However, there exist significant differences in terms of rankings and mean values of frequency and importance ratings for other ethical problems.