MUTUAL FUND PERFORMANCE EVALUATION – APPLICATION OF SYSTEM BCC MODEL

For the first time, this research adopts the system BCC model in data envelopment analysis in order to evaluate mutual fund performance and compares the results between the BCC model and the system BCC model. This study is based on the sample of stock funds and balanced funds in Taiwan, with the empirical results summarised as follows. (i) Under the system BCC model, the average score of balanced funds is greater than the average score of stock funds. (ii) There is a significant difference in efficiency scores between the BCC model and the system BCC model, and it is proper to adopt the system BCC model. (iii) The number of major reference sets that have been referenced under the BCC model is larger than under the system BCC model. (iv) If we neglect the distinctions between stock funds and balanced funds, there will be errors on performance assessment. Ultimately, the results reveal that there is a significant difference between the two models. Provided no consideration is made for the funds belonging to two different systems, errors in performance evaluation are inevitable. This research provides investors with both a more accurate and comprehensive evaluation method.     

Unpacking Institutional Distance: Addressing Human Capital Development and Emerging‐Market Firms’ Ownership Strategy in an Advanced Economy

As latecomers to global business competition, emerging‐market multinational companies (EMNCs) utilize cross‐border mergers and acquisitions (M&As) to quickly acquire strategic assets, resulting in an improved competitive position. Advanced markets with well‐established firms and well‐developed market‐supporting institutions become particularly important destinations for EMNCs’ foreign operations. Institutional distance, which represents conflicting legitimacy requirements between the host and home institutional environments, is expected to be negatively associated with the foreign acquirer's ownership position. The current study examines a sample of EMNCs’ cross‐border M&As in the United States between 2005 and 2011 and reveals the unique nature of EMNCs’ ownership strategies. Taking both formal and informal institutions into consideration, our findings suggest that EMNCs originating in countries with lower levels of human capital development may have more urgency in seeking ownership control in advanced markets and are less influenced by the negative association of institutional distance in their ownership strategy. © 2016 Wiley Periodicals, Inc.     

Mobil Oil: Defending market leadership in synthetic lubricants in China. Comment on Mobil Oil: Defending market leadership in synthetic lubricants in China

China's lubricant market was dominated by PetroChina and Sinopec. Foreign brands together controlled about 25% of the market, and these brands offered the higher‐grade lubricants. Most vehicle lubricants used in China were low‐grade lubricants. However, this was expected to change. Continued economic growth and rising incomes had led to increased demand for cars. New models and luxury cars would likely stimulate demand for higher‐grade lubricants. The case focused on synthetic lubricants of which Mobil was the market leader. Mobil's leadership position here was being threatened. Local brands were gradually improving in quality, and a few have secured rights to supply joint venture car manufacturers. Armed with deep pockets, their aggressive advertising had helped their brands gain prominence. The case required some recommendations on how Mobil should respond. © 2008 Wiley Periodicals, Inc.     

The operating efficiency of financial holding and nonfinancial holding banks—Epsilou‐based measure metafrontier data envelopment analysis model

Previous bank efficiency studies assumed that the same efficient frontier system exists in different types of banks, but the conventional radial data envelopment analysis (DEA) model slacks are not counted in efficiency scores, and nonradial DEA models do not consider radial features. This paper develops an Epsilou‐based measure meta‐DEA approach for measuring the efficiencies and technology gaps of different bank types. The results are as the follows: The average efficiency and technology gaps of nonfinancial holding banks are better than those of financial holding banks. The nonfinancial holding banks are more efficient than financial holding banks in investment and other income.     

Convergence or divergence?*: The South Korean state after the Asian financial crisis

This study suggests that the government's attempt to replace the developmental state by introducing neo‐liberal axioms is slim. The state that is to emerge in consequence of the economic and financial reforms carried out by the Kim government is distinct from the neo‐liberal regulatory state at the ideological level; moreover, the embedded characteristics of the developmental state hinder changes in the nature of the state. It is the paper's argument that the economic reform that has been implemented by the Kim Dae‐Jung government since its establishment (in 1998) is merely a form of “self‐help” to correct those mistakes committed by the developmental state. Despite the neo‐liberal reform attempted by the Kim government, the social, political and historical conditions in which a liberal regulatory state may be born are pre‐mature, and the embedded legacies of the developmental state are far from becoming a thing of the past.