Ownership of Cross–Listed Equities: An Investigation of Turnover, Diversification, and Risk

Using data for a sample of Malaysian stocks that are traded in both Malaysia and Singapore, we show that the turnover rate (trading volume relative to shares held) is significantly higher in the foreign market than in the domestic market. We also find that ownership of cross–listed shares by foreign investors is not motivated by diversification benefits. Instead, we find that the proportion of a firm's shares held in Singapore is directly related to the firm's level of systematic risk.     

Self‐help in housing and chengzhongcun in China's urbanization

This article focuses on the housing issues of rural migrants arising from urbanization, with particular reference to chengzhongcun, a topic with considerable impact on policymaking. An attempt is made to understand the underlying rationale of self‐help in housing and the important role of chengzhongcun in sheltering rural migrants in the context of China's rural‐urban dichotomy. As demonstrated in this study, chengzhongcun accommodate, with little in the way of government resources and assistance, millions of rural migrants because of their social accessibility and affordability. While not denying their social problems, we argue that chengzhongcun in fact act as an innovative and positive agent to promote urbanization in present day China by housing massive numbers of rural migrants and assimilating them into cities. Current government policies towards chengzhongcun have generated a wide range of interest conflicts and confrontations. The consequences of such conflicts show that the government policies were problematic and unworkable, as they violated basic market principles as well as citizen rights. Policy strategy towards the redevelopment of chengzhongcun must acknowledge their credibility in the Chinese road to urbanization and requires more thoughtful and prudent consideration of migrants' demands for affordable housing.     

Evidence on agglomeration economies,diseconomies, and growth

Conventional urban economic analysis suggests that a local economy's size is closely related to a number of features, including levels of human capital and the availability of specialized inputs, which are likely to influence positively the rate at which it accumulates further economic activity. At the same time, urban theory also suggests that once cities reach a certain level of size, these agglomeration benefits begin to peter out, while diseconomies rise rapidly. Consequently, we should see an ‘inverted U‐shaped’ pattern of growth with respect to economic size—rates of growth first rise, then fall as size increases. This paper shows that, while such a pattern is largely absent from recent data on growth in metropolitan area population and employment, it emerges strikingly in county‐level data. Copyright © 2002 John Wiley & Sons, Ltd.     

DURATION MOMENTS AND YIELD CURVE MOVEMENTS

In this paper we will analyze the relationship between the value and duration moments of a cash flow and movements in the yield curve. We will show that for changes in the yield curve which can be related to tⁿ , the 1st order changes in the net present value of a cash flow are linearly dependent on the n + lth duration moments, and that the 2nd order changes are dependent on the sum of duration moments of order 2 n + 1 and 2 n + 2. We will use this relationship to tilt tracking portfolios so as to protect them against specific changes in the yield curve.     

Significant Issues for the Future of Product Innovation

The value of a technology strategy has been increasingly discussed by R&D personnel and those involved in product development and business planning efforts. In this issue Albert Rubenstein and Americo Albala elevate this discussion by showing the importance of preparing a firm to compete by stressing the development of important, relevant technologies. Discovery and development must be channeled into areas that will be needed to support business initiatives likely to occur in the future. Albala stresses the importance of this change for the development of economies in nations that have been disappointed by the lack of success of importing technologies from more developed nations, while Rubenstein maintains that the pace of marketplace change requires a technology strategy in order to reduce the misapplication of scarce resources within the firm and the possibility of being blindsided by competitive developments. These essays continue a year-long series of contributions that the editor-in-chief solicited from members of the editorial board. Members were asked to reflect upon changes and opportunities that they see influencing our profession during the coming decade. Both of these short essays are designed to introduce new perspectives. It is not essential that you agree with the recommendations, but we hope that you are stimulated as you reflect on the issues they raise.     

'Technoscience' Education: Empowering Citizens Against the Tyranny of School Science

The status quo for school science and technology is unacceptable. While the former often is required for admission to university engineering, as well as to science programmes, the latter is deemed most appropriate for less able, concrete thinkers. This situation persists, despite the fact school science tends to generate large groups of citizens who are relatively scientifically and technologically illiterate, largely as a result of its preoccupation with identifying and training potential scientists and engineers. This practice is tyrannical. It must be abandoned forthwith. A realistic alternative is a combined technology and science programme – perhaps called 'technoscience' education – that would treat science and technology as equals. Such courses may, as well, be more democratic in the sense that technological problem solving often is more natural to everyday situations that everyone may find useful, not just future scientists or engineers. A framework for combined technology and science courses is described and defended here. Originally developed through collaborative action research amongst practising teachers of science, the approach appears to be feasible, under certain – perhaps ideal – conditions. A number of changes to science and technology education may be necessary for broader implementation, not the least of which is a general retrenchment in expectations for pre-determined learning, along with adjustments to teacher education. Nevertheless, the approach is recommended because of its emphasis on: personalization, inclusion, problematization, explicitness, apprenticeship, authenticity, contextualization and freedom. This revised version was published online in July 2006 with corrections to the Cover Date.     

Substance, Form and PFI Contracts

The Private Finance Initiative (PFI) was launched by the United Kingdom Government in 1992 in order to encourage the private sector in the UK to become more involved in public sector development projects. A key theme of the initiative was that the public should receive 'value for money'. This article investigates the accounting issue as to whether or not the private or the public sector should record any property related to PFI projects on balance sheet. It argues that although both HM Treasury and the Accounting Standards Board (ASB) might agree on the accounting principles, the practical impact is that in order for related properties to stay off the public sector's balance sheet, substantial risk needs to be transferred to the private sector. As a consequence of this, the objective of providing value for money to the public may not be achieved.