Family control, board independence and earnings management: Evidence based on Hong Kong firms

In this study, we document that independent corporate boards of Hong Kong firms provide effective monitoring of earnings management, which suggests that despite differences in institutional environments, corporate board independence is important to ensure high-quality financial reporting. The findings also show that the monitoring effectiveness of corporate boards is moderated in family-controlled firms, either through ownership concentration or the presence of family members on corporate boards. The results based on firms reporting small earnings increases provide additional support for our finding that the monitoring effectiveness of independent corporate boards is moderated in family-controlled firms.     

Emergency relief vent sizing for fire emergencies involving liquid-filled atmospheric storage vessels

For large atmospheric vessels the potential occurrence of sufficient liquid swell resulting in two-phase flow is of special importance. Based upon an extension of analytical work it would appear justifiable to ignore two-phase flow effects for non-foamy systems.     

The Influence of Culture on Organizational Design and Planning and Control in Australia and the United States Compared with Singapore and Hong Kong

This study draws on the national cultural dimensions of power distance, individualism, and Confucian dynamism to predict and explain differences in philosophies for, and approaches to organizational design and management planning and control systems in Australia and the US, representing Anglo-American nations, and Singapore and Hong Kong, representing the 'five dragons' of East Asia. Data were gathered by survey questionnaires mailed to senior accounting and finance executives in 800 organizations.
The results were largely as predicted and, in general, provide support for the importance of national culture in influencing organizational design and management planning and control systems. In particular, the cultural values of Anglo-American society relative to East Asian society are associated with a greater emphasis on decentralization and responsibility centres in organizational design, and a greater emphasis on quantitative and analytical techniques in planning and control. By contrast, the cultural values of East Asian society are associated with a greater emphasis on long-term planning and on group centred decision-making. The results are important to managers in global organizations who need to understand the cultural bases of observed differences in organizational and management planning and control practices in Anglo-American and East Asian nations.     

What moves German Bund futures contracts on the Eurex?

The German 10‐year Bund futures contract traded on the Eurex futures and options exchange in Frankfurt became the world's most actively traded derivative product by the end of 1999. In this article, we provide a detailed exploration of the interday and intraday return volatility in the Bund futures contract using a sample of five‐min returns from 1997 to 1998. The evolution of interday volatility is described best by a MA(1)‐fractionally integrated process that allows for the long‐memory features. At the intraday level, we find that macroeconomic announcements from both Germany and the U.S. are an important source of volatility. Among the various German announcements, we identify the IFO industry survey of business climate, industrial production (preliminary), and Bundesbank policy meeting as being by far the most important. The three most significant U.S. announcements include the employment report, the National Association of Purchasing Managers (NAPM) survey, and employment costs. Overall, U.S. macroeconomic announcements have a far greater impact on the Bund futures market than their German counterparts. © 2002 Wiley Periodicals, Inc. Jrl Fut Mark 22:679–696, 2002     

Health investment, saving, and public policy

Abstract.  This paper develops an overlapping‐generations model in which agents invest in health to prolong life in both working and retirement periods. It explores how unfunded social security with or without health subsidies affects life expectancy, economic growth, and welfare. In particular, by extending life at a possible cost of capital accumulation, health subsidies and a pay‐as‐you‐go pension can improve welfare, especially in the short run. JEL classification: I12, J14, J18, O11     

Optimal static quadratic hedging

We propose a flexible framework for hedging a contingent claim by holding static positions in vanilla European calls, puts, bonds and forwards. A model-free expression is derived for the optimal static hedging strategy that minimizes the expected squared hedging error subject to a cost constraint. The optimal hedge involves computing a number of expectations that reflect the dependence among the contingent claim and the hedging assets. We provide a general method for approximating these expectations analytically in a general Markov diffusion market. To illustrate the versatility of our approach, we present several numerical examples, including hedging path-dependent options and options written on a correlated asset.     

Enhancing online-to-offline specific customer loyalty in beauty industry

Customer loyalty is one of the core values for business success in beauty industry; however, there is insufficient research on weighing the importance of critical factors contributing to customer loyalty for the industry. This study, for the first time, investigates and ranks empirically the critical factors contributing to O2O specific customer loyalty in beauty industry by using Analytical Hierarchical Process. Results show that customer satisfaction, customer’s perceived switching costs, customer trust, corporate image and customer value positively influence O2O specific customer loyalty (in decreasing order of importance). Attributes contributing to the five critical factors have also been studied and ranked.     

The impact of basic human needs on the use of retailing self-service technologies: A study of self-determination theory

Self-service technologies (SSTs) are becoming increasingly popular in retailing contexts. Previous theories of SST adoption have largely ignored the basic human needs, such as competence, autonomy and relatedness, that drive customer motivation and the use of SSTs. We address this theoretical gap and examine self-determination theory (SDT) in the context of the supermarket self-checkout. Based on the argument proposed by SDT, self-determined motivation is hypothesized to mediate the relationships between autonomy, competence, and perceived anonymity, and the intention to use SSTs. Data collected from 361 respondents form a structural equation model and support these hypotheses. The current study is important as it helps understand the role of customers' participation in the self-service. Managerial and theoretical implications are suggested.     

Job attitudes and organizational justice in joint venture hotels in China: the role of expatriate managers

In a survey of local employees in joint venture hotels in China, perceived interactional justice was found to be predictive of job attitudes, and perceived salary fairness in comparison with expatriate managers explained additional variance in job attitudes. Compared to previous results, local employees now perceived their pay as much more unfair when compared with that of expatriate managers. In addition to perceived justice, perceived managerial practices of expatriate managers and incentives received were also predictive of job attitudes of local employees. Consistent with previous results, employees working with overseas Chinese and Japanese managers reported less positive job attitudes than those working with Western and other Asian managers. These differences were related to neither perceived differences in managerial practices or managerial experiences of the expatriate managers nor perceived differences in incentives received. The justice framework provides the best explanation for these results.