Firm value and its relation to equity retention levels, forecast earnings disclosures and underpricing in initial public offerings in Hong Kong

This study helps extend our understanding of the factors underlying the valuation of initial public offering (IPO) firms within the Hong Kong market context. The issues investigated are all the more important given Hong Kong's unique position in China, where free and unfettered capital markets entice global institutions wishing to partake in the ‘China investment story’. We find support for three signals of initial firm value: the fraction of equity retained by pre-listing stakeholders [Leland, H., & Pyle, D. (1977). Information asymmetries, financial structure and financial intermediation. Journal of Finance, 32, 371–387], the voluntary disclosure of a prospectus earnings forecast [Trueman, B. (1986). Why do managers voluntarily release earnings forecasts. Journal of Accounting and Economics, 53–71] and the amount of funds ‘given-up’ through IPO underpricing [see Allen, F., & Faulhaber, G. R. (1989). Signalling by underpricing in the IPO market. Journal of Financial Economics, 23, 303–323; Grinblatt, M., & Hwang, C. Y. (1989). Signalling and the pricing of new issues. Journal of Finance, 44, 393–420; Welch, I. (1989). Seasoned offerings, imitation costs, and the underpricing of initial public offerings. Journal of Finance, 44, 421–449]. Moreover, the signals appear robust to different firm valuation measures (i.e., market-to-book and Tobin's Q) and to the inclusion/exclusion of PRC state-owned H-share issuers.A number of other important contributions also emerge. First, we develop a new measurement form for the pre-listing shareholders’ equity retention level (α) by decomposing it to reflect differential effects from primary and (‘voluntary’ and ‘involuntary’) secondary offers. We further show that after accounting for listing rule effects—which partially drive the choice of the retained equity level in the Hong Kong setting—the equity retention-firm value relation is seen with much greater clarity.In a later stage of analysis we deepen the signal-firm value findings by relating the three signals to post-IPO earnings. We note a positive association between the fraction of equity retained by pre-listing owners and earnings growth. However, this association weakens somewhat beyond the first two accounting year-ends post-listing. Significantly, earnings appreciation appears markedly weaker for issuers going to market with a secondary offer component within their overall IPO. Finally, consistent with Jain and Kini's [1994. The post-operating performance of IPO firms. Journal of Finance, 49(5), 1699–1726] US evidence, IPO underpricing appears to have little or no association with post-listing earnings.     

Satisfied with red tape? Leadership,civic duty,and career intention in the military

We examine how the coerciveness of HR procedures and leadership behaviours affect job satisfaction (JS) and career intention (CI), and how civic duty (CD) mediates these relationships. Within the framework of the human resource management performance chain, we draw on leadership and motivational theories and test the proposed relations in a structural equation model with data from a survey of the Federal Armed Forces Germany (n = 1,331). The findings show that the behaviour of supervisors, rather than red tape, influences JS and CI. The results extend our understanding of the interplay between leadership behaviours and followership attitudes under high degrees of organizational coercion.     

保险营销员薪酬绩效制度对员工留存率的影响分析

经济新常态下,保险行业利润率被不断压缩,同业竞争压力却不断增加。可以对保险营销员工作稳定性产生影响的因素较多,其中,薪酬绩效制度的影响最为明显,员工留存率较低也与薪酬绩效制度的不合理具有密切关联。论文分析了薪酬绩效制度对员工留存率的具体影响,以及薪酬绩效制度存在的不足,并就如何优化薪酬绩效制度提出合理建议。     

The Relationship Between Employee Fit Perceptions,Job Performance,and Retention: Implications of Perceived Fit

Meaningful work has become an increasingly important job outcome for individuals in recent years. Studies indicate that many employees lack experienced meaningfulness in their work and that organizations have not done a good job at creating meaningful and emotionally satisfying work experiences for employees. A person–job fit approach to meaningful work and employee retention is described that consists of matching individual self-concept with job tasks and behaviors. It is proposed that this self-concept–job fit will be strongly related to meaningful work. It is also proposed that meaningful work is related to important outcome variables valued by organizations, such as increased worker performance and employee retention. Path analysis supports the proposed relationships. Implications for human resource management activities and future research are discussed.     

Examining the ‘black box’ of human resource management in MNEs in China: exploring country of origin effects

We examine the impact of HPWS on the attitudes and retention of Chinese employees in multinational enterprises (MNEs) operating in China. More specifically, we examine the extent to which the degree of HPWS and the impact of these practices differ according to the country of origin of the MNE. We surveyed a sample of 410 Chinese employees currently working in Western and Asian MNEs. The findings indicate significant ‘country of origin’ effects, where employees of Western and Asian MNEs perceive different levels of HPWS are in operation in their respective organisations. Employee trust, job satisfaction and affective commitment are all important factors in the retention of Chinese employees of MNEs, with high levels of commitment being the most significant factor. However, the relative impact of these factors on employee retention differs by country of origin of the MNE.     

Recruitment and Retention Practices in Independent and Chain Restaurants

Abstract

The management of employees in the restaurant industry is a major challenge that operators must address as companies work to find the best employees in a shrinking labor market. An exploratory study of twenty restaurants (ten independent and ten chain restaurants) investigated similarities and differences in employee recruitment and retention practices. Personal face-to-face interviews with managers disclosed a variety of interesting practices and ideas in the management areas of recruitment, interviewing and hiring, incentives, discipline, and retention. Environmental issues (relating to atmosphere and work environment) were most frequently cited by managers as reasons employees choose to work and remain in restaurants. Compensation and monetary awards were second in importance, followed by work schedule. This analysis provides an understanding from the manager's viewpoint of why employees work in restaurants and offers a perspective in current practices in employee recruitment and retention processes.     

Ignoring Your Best Customer?

Abstract

Many organizations devote considerable amounts of money and human resources to develop systems aimed at improving customer retention and profitability. The conventional wisdom is that if retaining the most profitable customers is a good way to increase profitability, then allocating resources to increase the satisfaction of those customers has to be a great objective. However, managers do not observe clear link between satisfaction, retention and profitability. The reason is that different customers have different preferences for convenience as well as different costs associated with switching service providers. These preference and cost heterogeneities have important implications for how companies should target their customer service efforts.

In this paper, we adopt a latent class model to examine the interrelationship amongsatisfaction, retention and profitability. Applying the model to a data of customer satisfaction, self-reported switching propensity, and profitability provided to us by a large Midwestern bank, we make normative statements about which customers are the most criticalones for the company to satisfy and how to satisfy them. The results of this research help to explain why managers have been frustrated by the apparent lack of actionable information present in customer satisfaction data and points to more intelligent ways to use this data.     

Securitization and optimal retention under moral hazard

Securitization improves liquidity in capital markets by allowing originators to remove issued loans from its balance sheet and use the proceeds for other purposes. Securitization is often suspected of being one of the main reasons for the recent financial crisis. One concern is that securitization leads to moral hazard in lender screening and monitoring. By selling loans to investors and removing them from their books, banks have a lesser incentive to carefully evaluate and monitor borrowers’ credit quality to ensure that they can repay their loans. One problem in the literature is that the analysis of securitization is very general and suffers from a lack of specific security design analysis under asymmetric information. We address the moral hazard problem using a principal–agent model where the investor is the principal and the lender is the agent. We show that the optimal contract must contain a retention clause in the presence of moral hazard. The optimal retention is affected by tranching and credit enhancement.