energy embodied in the international trade of china an energy input output analysis abstract growing international trade has not only positively affected the people s republic of china s china s economic development but also expanded the exportation of energy embodied in goods during their production this energy flow out will pose risks to china s rational utilization of natural resources as well as environmental protection in this paper we evaluate the energy embodied in goods produced in china during 1992 2005 and use input output structural decomposition analysis to identify five key factors causing the changes of energy embodied in exports direct primary energy efficiency primary energy consumption structure structure of intermediate inputs structure of exports and scale of exports for the three sub periods of 1992 1997 1997 2002 and 2002 2005 results show that china is a net exporter of energy and the energy embodied in exports tends to increase over time the expanding total volume of exports and increasing exports of energy intensive goods tend to enlarge the energy embodied in exports within all three sub periods but these driving forces were offset by a considerable improvement of energy efficiency and changes in primary energy consumption structure from 1992 to 2002 and the effects of structure of intermediate input only in the sub period from 1992 to 1997 from 2002 to 2005 the sharp augmentation of energy embodied in exports was driven by all the five factors our research has practical implications for the chinese economy results of this study suggest that the energy embodied in trade should receive special attentions in energy policies design to limit the energy resource out flow and pollution generation

emissions embodied in chinese exports taking into account the special export structure of china abstract quantification of co 2 emissions embodied in china s trade is important for an informed debate on whom to blame for the recent rise in chinese emissions or the calculation of border carbon adjustments applying input output io techniques we calculate these emissions in 1 a standard model 2 a regionally disaggregated model taking into account that export production is concentrated in more advanced and more emission efficient provinces and 3 in a model with export processing taking into account that almost half of the chinese exports rely on a large share of imported intermediates and little domestic value and emissions added we compare year 2007 emissions embodied in chinese exports in a unified framework we also report emissions embodied in chinese imports used for intermediate production of exports by combining calculations for china with data from global io models we find that both a model with 30 provinces 1730 mt co 2 and a model accounting for export processing 1630 mt yield lower chinese emissions embodied in exports compared to the standard model 1782 mt in the regional model emissions are even lower 1522 mt if interprovincial trade is not taken into account

from production based to consumption based national emission inventories abstract under the united national framework convention of climate change unfccc countries are required to submit national emission inventories nei to benchmark reductions in greenhouse gas ghg emissions depending on the definition and system boundary of the nei the mitigation options and priorities may vary the territorial system boundary used by the unfccc has been critiqued for not including international transportation and potentially causing carbon leakage to address these issues past literature has argued in favour of using consumption based nei in climate policy this article discusses several issues in moving from the standard production based nei to consumption based nei first two distinct accounting approaches for constructing consumption based nei are presented the approaches differ in the allocation of intermediate consumption of imported products second a consistent method of weighting production based and consumption based nei is discussed this is an extension of the previous literature on shared responsibility to nei third due to increased uncertainty and a wide system boundary it may be difficult to implement consumption based nei directly into climate policy several alternative options for incorporating consumption based inventories into climate policy are discussed

embodied energy and intensity in china s normal and processing exports and their driving forces 2005 2015 abstract international trade has important impacts on a country s energy consumption this paper first uses the time series 2005 2015 extended input output database to study china s embodied energy and intensity in both normal and processing exports structural decomposition analysis sda is then applied to analyze the driving forces behind the embodiment changes the empirical results show that china s energy embodied in both normal and processing exports first increased in 2005 2008 dropped in 2009 due to the global financial crisis and then rose again after 2009 and finally dropped in 2014 2015 the embodied energy in trade as a percentage of total energy consumption in china was relatively stable before and after the global financial crisis at around 28 over the 2005 2008 period and 22 over the 2009 2015 period the contribution of the aggregate embodied intensity aei of exports to china s aggregate energy intensity dropped from 30 in 2005 to 21 in 2015 among china s trading partners the united states japan and korea together accounted for around half of china s embodied energy and aei in exports in 2005 but their shares dropped to only one third in 2015 energy efficiency improvement played the key role in reducing the embodied energy and intensity in china s exports similar analysis can be applied to other regions and indicators

market and political regulatory perspectives on the recent accounting scandals not surprisingly the recent accounting scandals look different when viewed from the perspectives of the political regulatory process and of the market for corporate governance and financial reporting we do not have the opportunity to observe a world in which either market or political regulatory processes operate independently and the events are recent and not well researched so untangling their separate effects is somewhat conjectural this paper offers conjectures on issues such as what caused the scandalous behavior why was there such a rash of accounting scandals at one time who killed arthur andersen the securities and exchange commission or the market did fraudulent accounting kill enron or just keep it alive for too long what is the social cost of financial reporting fraud does the united states in fact operate a principles based or a rules based accounting system was there market failure or was there regulatory failure or both was the sarbanes oxley act a political and regulatory overreaction does the united states follow an ineffective regulatory model

promises and pitfalls in environmentally extended input output analysis for china a survey of the literature abstract as the world s largest developing economy china plays a key role in global climate change and other environmental impacts of international concern environmentally extended input output analysis ee ioa is an important and insightful tool seeing widespread use in studying large scale environmental impacts in china calculating and analyzing greenhouse gas emissions carbon and water footprints pollution and embodied energy this paper surveys the published articles regarding ee ioa for china in peer reviewed journals and provides a comprehensive and quantitative overview of the body of literature examining the research impact environmental issues addressed and data utilized the paper further includes a discussion of the shortcomings in official chinese data and of the potential means to move beyond its inherent limitations

financial fraud a literature review financial fraud a literature review this paper describes the empirical universe of financial fraud as it has been documented in the academic literature specifically it describes the different forms of fraudulent behaviour in the context of financial market activities the prevalence and consequences of such behaviour as identified by previous research and the economic and market structures that scholars believe facilitate it to structure the discussion a conceptual distinction is made between three types of financial fraud false financial disclosures financial scams and financial mis selling the findings of the literature review highlight a number of recent developments that scholars think have facilitated the occurrence of financial fraud including 1 the development of new fundamental conflicts of interest and perverse incentive structures in the financial industry 2 an influx of unsophisticated gullible participants in the financial marketplace 3 the increasing complexity involved in financial market transactions as a result of rapid technological legal and financial innovation and an ever widening menu of financial products 4 an increase in the use of justified secrecy in the form of a mystification of trading models adopted by fund managers

financial credibility ownership and financing constraints in private firms as shown in the international business literature the ability of controlling owners to extract private benefits is greater in countries with weaker legal institutions in these countries providing credible financial information could play an especially important role in reducing information asymmetry between private firms and external providers of finance for our sample of firms across 68 countries we find that firms with greater financial reporting credibility i e annual financial statements reviewed by an external auditor experience significantly lower perceived problems in gaining access to external finance further the impact of financial credibility in reducing financing constraints in the presence of a controlling owner is more pronounced in countries with weaker creditor rights given the predominance of private firms around the world their economic significance and the fact that an increasing number of private firms now operate in multinational environments with different institutional features we contribute to the literature on the role of financial information firm characteristics and country level institutions for an important and interesting group of firms

trade off analysis between embodied energy exports and employment creation in china moving towards sustainable consumption in china must factor in the drivers of production china s domestic energy demand is affected not only by domestic demand but also by foreign trade the accounting of energy embodied in china s international trade has attracted much attention in recent years in fact embodied energy imports exports are a part of the normal pattern of economic phenomena occurring through international trade with exports of embodied energy contributing significantly to china s economic development this research suggest that china s net embodied energy exports remained relatively stable before 2002 and then increased dramatically from 73 mtoe in 2002 to 502 mtoe by 2007 with an average annual growth rate of 47 2 over that period the total employment creation reliant on these exports is 191 3 million people including direct employment of 44 1 million people and indirect employment of 147 2 million people in 2007 and the total employment creation increased quickly between 2002 and 2007 with an average annual growth rate of 9 1 the share of employment created by exports in china s total employment increased from 16 5 in 1997 to 18 6 in 2002 and a more dramatic increase can be observed in 2007 of 28 1 the exports oriented sectors in china are energy intensive from the perspective of embodied energy consumption and the energy intensive exports are located in nearly the same sectors as the labor intensive exports china will find it difficult to sustain the trade off in costs due to unemployment if it wishes to reduce embodied energy exports china needs to exercise patience and long term reform to change the current development model because of its large economy and population base

input output analysis of co2 emissions embodied in trade and the driving forces processing and normal exports in recent years energy related co2 emissions embodied in international trade and the driving forces have been widely studied by researchers using the environmental input output framework most previous studies however do not differentiate different input structures in manufacturing processing exports and normal exports using china as an example this paper exemplifies how implications of results obtained using different export assumptions differ the study posits that the utilization of traditional i o model results in an overestimation of emissions embodied in processing exports and an underestimation in normal exports the estimate of co2 emissions embodied in china s exports drops by 32 when the extended i o model is used the choice of export assumption has more impact on the decomposition results for processing exports the study further highlights that for a country with an export structure similar to china it is meaningful to look into the impact of export assumption in embodied emission studies

firm ownership china s export related emissions and the responsibility issue abstract china s co 2 emissions and those embodied in its exports have been extensively studied one often neglected aspect is the prevalence of foreign invested enterprises fies in china s exports for which a substantial portion of benefits return to the investing countries in this paper we revisit china s export related co 2 emission responsibilities by viewing them from a new gross national income perspective using a recently developed environmental input output framework one which distinguishes firms by ownership and trade mode we find that china s co 2 emissions responsibility for each yuan of national income from fie exports is actually higher than that attributable to chinese owned enterprise coe exports the result has a somewhat surprising implication it suggests another source of conflict between china s and global interest in reducing co 2 emissions from a purely chinese as opposed to global standpoint a higher share of exports by coes rather than fies is favorable even though coes emit more co 2 when producing each unit of exports this finding should sound an additional warning to those who still think that global climate change mitigation can be effectively pursued by allocating country by country emissions responsibility

the anatomy of corporate fraud a comparative analysis of high profile american and european corporate scandals this paper presents a comparative analysis of three american enron worldcom and healthsouth and three european parmalat royal ahold and vivendi universal corporate failures the first part of the analysis is based on a theoretical framework including six areas of ethical climate tone at the top bubble economy and market pressure fraudulent financial reporting accountability control auditing and governance and management compensation the second and third parts consider the analysis of these cases from fraud perspective and in terms of firm specific characteristics ownership structure and environmental context coverage in media and academic literature regulatory and corporate governance frameworks the research analyses shed light on the fact that despite major differences between europe and u s in terms of political institutions laws and regulations as well as managerial practices there are significant similarities between six groups the analysis also demonstrates that the ethical dilemma has been coupled with ineffective boards inefficient corporate governance and control mechanisms distorted incentive schemes accounting irregularities failure of auditors dominant ceos dysfunctional management behavior and the lack of a sound ethical tone at the top significant similarities were also observed in the analysis from the fraud triangle perspective however there are several major differences between the six corporate failure cases particularly with regard to ownership structure coverage in media and legal regulatory and governance frameworks this research study may have several academic and practical contributions particularly because of multidisciplinary international features and comparative analyses used in the paper

input output analysis of co2 emissions embodied in trade competitive versus non competitive imports energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output framework in the literature two different approaches to deal with emissions embodied in a country s imports can be found one of the approaches is based on the assumption of competitive imports while the other is based on the assumption of non competitive imports we show that the implications of the results obtained using different imports assumptions are not the same the approach using the competitive imports assumption gives estimates larger than those obtained using the non competitive import assumption the differences between the two embodiment estimates come from the transition of embodied emissions in china s imports for intermediate consumption to those in china s exports this explains why relatively high estimates of co2 emissions embodied in china s exports are reported in several recent studies appearing in energy policy

the driving forces of china s energy use from 1992 to 2010 an empirical study of input output and structural decomposition analysis abstract the energy consumption in china has accelerated since the early 2000s and china became the largest energy consumer in the world by 2010 to examine the driving forces of china s energy use this paper conducts a structural decomposition analysis based on hybrid input output tables in addition we describe the framework of china s energy system by using two energy flow charts the results show that china s current energy use is investment led demand between 1992 and 2007 the three main final demand categories gross fixed capital formation household consumption and exports contributed approximately one third each to the changes of total energy use in china between 2007 and 2010 however three quarters of energy consumption changes came from investment activity only technological improvement saved approximately five percent of the total energy use annually during the periods of 1992 1997 1997 2002 and 2007 2010 in the period of 2002 2007 however its contribution dropped to only three percent p a due to the rise of the indirect energy requirement coefficient in the construction sector these results suggest that adjusting the final demand structure and improving energy efficiency further will meet china s energy challenges in the future

a theory of corporate scandals why the usa and europe differ a wave of financial irregularity in the usa in 2001 2 culminated in the sarbanes oxley act a worldwide stockmarket bubble burst over this same period with the actual market decline being proportionately more severe in europe yet no corresponding wave of financial scandals involving a similar level of companies occurred in europe given the higher level of public and private enforcement in the usa for securities fraud this contrast seems perplexing this paper submits that different kinds of scandals characterize different systems of corporate governance in particular dispersed ownership systems of governance are prone to the forms of earnings management that erupted in the usa but concentrated ownership systems are much less vulnerable instead the characteristic scandal in such systems is the appropriation of private benefits of control this paper suggests that this difference in the likely source of and motive for financial misconduct has implications both for the utility of gatekeepers as reputational intermediaries and for design of legal controls to protect public shareholders the difficulty in achieving auditor independence in a corporation with a controlling shareholder may also imply that minority shareholders in concentrated ownership economies should directly select their own gatekeepers copyright 2005 oxford university press

input output analysis of co2 emissions embodied in trade the effects of sector aggregation abstract energy related co2 emissions embodied in international trade have been widely studied by researchers using the environmental input output analysis framework it is well known that both sector aggregation and spatial aggregation affect the results obtained in such studies with regard to the latter past studies are often conducted at the national level irrespective of country or economy size for a large economy with the needed data studies may be conducted at different levels of spatial aggregation we examine this problem analytically by extending the work of su et al su b huang h c ang b w zhou p 2010 input output analysis of co2 emissions embodied in trade the effects of sector aggregation energy economics 32 1 166 175 on sector aggregation we present a numerical example using the data of china and by dividing the country into eight regions it is found that the results are highly dependent on spatial aggregation our study shows that for a large country like china it is meaningful to look into the effect of spatial aggregation

calculation of embodied energy in sino usa trade 1997 2011 abstract in order to find efficient trade measures to reduce china s energy consumption and to provide theoretical support for the climate talks between china and america we investigate the impact of sino usa trade on energy consumption from the perspective of embodied energy an environmental input output life cycle assessment eio lca model was established to calculate the total energy consumption coefficient the direct consumption coefficient and the complete consumption coefficient of the sectors of the national economies of china and america after taking into consideration the data of every sector of the national economy in sino usa trade energy embodied in the import and export trade between china and america was calculated to verify the real energy flows in sino usa trade the research results suggest the following china is the net exporter of embodied energy in sino usa trade and coal crude oil and natural gas are the major components in 1997 2011 the net exports of china s embodied energy totaled 1523 082 200 t of standard coal the amount of china s energy consumption increased by 895 527 900 t of standard coal and america s energy consumption decreased by 11 871 200 t of standard coal as a result of sino usa trade on this basis corresponding policies and recommendations are proposed

attribution of changes in divisia real energy intensity index an extension to index decomposition analysis abstract in this paper we extend the methodology of index decomposition analysis ida in energy studies by quantifying the contribution of individual attributes to the percent change of factors such as the real energy intensity index and structural change index we apply the proposed method to the real energy intensity index in the multiplicative logarithmic mean divisia index m lmdi approach a major ida technique since the m lmdi is based on geometric mean type indices and chain computation we need some appropriate method to cope with the difficulties that arise we present a numerical illustration of the proposed method using the energy consumption and real value added data of the us manufacturing industry and compare the results obtained by the fisher real energy intensity index

the influence of unrelated and related diversification on fraudulent reporting this study suggests that unrelated diversification has a positive influence on the probability of fraudulent reporting whereas related diversification has a negative influence on the probability of fraudulent reporting the strength of the influence of these corporate level strategies is contingent on the moral character of the firm unrelated diversification provides opportunity for financial innovation within the firm s internal capital market which can result in fraudulent reporting this is more likely when the moral character of the firm is driven by a conscienceless financial self interest motive as implied by the firm s contempt toward the larger community in terms of damage inflicted on the interests of people outside the firm in contrast related diversification where product divisions focus on mutual sharing and monitoring of operational activities can reduce the probability of fraudulent reporting this is more likely when constituents within the firm view themselves as moral citizens as implied by the firm s benevolence toward the larger community hence while unrelated diversification focuses the energies of managers within the firm on financial manipulation related diversification focuses these energies on productive purposes

the effect of ethical orientation and professional commitment on earnings management behavior the purpose of this study is twofold the first objective is to examine the impact of an individual s ethical ideology and level of professional commitment on the earnings management decision the second objective is to observe whether the presence of a personal benefit affects an individual s ethical orientation or professional commitment within the context of an opportunity to manage earnings using a sample of 375 undergraduate business majors our results suggest a significant relationship between an individual s ethical orientation and decision making further participants with higher levels of professional commitment seem to be less likely to engage in earnings management behavior and less likely to behave opportunistically these results have the potential to add to our understanding of certain behaviors in entry level personnel and should be of interest to managers practitioners academicians and researchers

evaluating the effects of embodied energy in international trade on ecological footprint in china based on sub sectoral level of economy and detailed traded items embodied energy ee in international trade flow in china is estimated during 1996 2004 and the effects of ee on sustainability are quantified by using one of the most popular indicators ecological footprint ef a framework of ef method which is more relevant to realism of specific country is proposed in this paper the results show that china is a net importer of ee during the period covered by this study except for the year from 1997 to 1999 imported exported and net imported ee tends to increase sharply along time series net imported energy would increase 38 and energy consumption would increase 2 8 in 2004 if ee were taken into account footprint energy is the most important part of ef components and is significantly affected by ee and the effects of ee on ef are similar to that of footprint energy footprint energy ef and ecological deficit of 2004 will be underestimated about 2 92 1 36 2 83 respectively if ee is not taken into the national energy budget continuous increase of ef and ecological deficit along time series indicates that china is moving away from sustainability 1 47 times chinese territories are accurately occupied by china in 1996 while 1 71 times in 2004 obviously unsustainability procedure of china is accelerated by ee the contribution of ee to ef and ecological deficit is small in absolute terms expressed in per capita but the effects on whole nation are huge if the population of china multiplies them to curb the increase of ef and ecological deficit and to achieve the goal of sustainability some policy and measures are also proposed c 2006 elsevier b v all rights reserved

misdeeds matter long term stock performance of firms after the filling of class action lawsuits consistent with theory this study of shareholder litigation found a broad transformation in company characteristics and risk exposures and generally negative short and long term performance effects that differed substantially between two types of allegations the findings have important implications for both regulator and institutional investor monitoring and decision making strategies

insider ownership and financial flexibility this study examines the cash flow sensitivity of external financing financial flexibility ff of firms from the perspective of the agency by focusing on whether and how insider ownership has a modifying effect on the ff of firms given the documented relationship between corporate governance and cost of external financing insider ownership an important proxy of corporate governance should affect ff via the agency cost channel a review of the us nonfinancial firms from 1992 to 2009 indicates that insider ownership aids in determining the ff of firms more specifically results indicate the existence of optimal insider ownership and any deviation from it causes ff to decrease in addition ff is higher when ceo ownership is lower 0 08 and this phenomenon is more pronounced for financially unconstrained firms furthermore ff is higher when non ceo insider ownership is in the middle range 0 12 0 43 for financially constrained firms whereas non ceo insider ownership has minimal impact on ff fo

an examination of the empirical relationship between the dividend and investment decisions a note this paper empirically examines the separation principle which asserts that investment decisions are not influenced by dividend decisions existing empirical evidence on this proposition is inconclusive in this paper we employ causality tests to examine whether investment decisions are in fact statistically exogenous with respect to dividend decisions these tests are undertaken using both firm specific and aggregate data the results indicate no causal relationship from dividends to investment which provides support for the separation principle as an empirical proposition miller and modigliani 12 m m have demonstrated that in perfect capital markets the value of a firm is independent of the way the firm chooses to finance its investments one implication of this theorem is that investment decisions should not be influenced by dividend decisions although dividend decisions may or may not be influenced by investment decisions fama and miller 6 chapter 4 term this result the separation principle although extant capital markets are not perfect the validity of the separation principle as an empirical proposition has some natural appeal the empirical evidence on the subject is limited two of the better known studies dhrymes and kurz 4 and fama 5 use two stage least squares to estimate explicit models of the dividend and investment decisions dhrymes and kurz find that dividend investment decisions affect investment dividend decisions while fama concludes that no significant relationship exists between the two decisions fama suggests that the difference in results arises because dhrymes and kurz omitted certain lagged variables constrained the parameters of the dividend and investment models to be equal for all firms and chose inappropriate deflators fama admits however that his own results may be influenced by sampling errors that obscure the true relationship between dividends and investment thus the existing empirical evidence must be considered inconclusive