bluuebunny/crossref_metadata_2025 huggingface dataset:
Multiplicative and Fractal Process in DNA Evolution
Authors: Bickel David R. , West Bruce J.
Published: August 2003

Darwin's theory of evolution by natural selection revolutionized science in the nineteenth century. Not only did it provide a new paradigm for biology, the theory formed the basis for analogous interpretations of complex systems studied by other disciplines, such as sociology and psychology. With the subsequent linking of macroscopic phenomena to microscopic processes, the Darwinian interpretation was adopted to patterns observed in molecular evolution by assuming that natural selection operate fundamentally at the level of DNA. Thus, patterns of molecular evolution have important implications in many fields of science. Although the evolution rate of a given gene seems to be of approximately the same order of magnitude in all species, genes appear to differ in rate from one another by orders of magnitude, a fact which standard theory does not adequately explain. An understanding of the statistics of rates across different genes may shed light on this problem. The evolution rates of mammalian DNA, based on recent estimates of numbers of nonsynonymous substitutions in 49 genes of human, rodents, and artiodactyls, are studied. We find that the rate variations are better described by lognormal statistics, as would be the case for a multiplicative process, than by Gaussian statistics, which would correspond to a linear, additive process. Thus, we introduce a multiplicative evolution statistical hypothesis (MESH), in which the theoretical explanation of these statistics requires the evolution of different substitution rates in different genes to be a multiplicative process in that each rate results from the interaction of a number of interdependent contingency processes.
Spatial Distribution and Fractal Properties of Aggregating Magnetic and Non-Magnetic Particles
Authors: Provata A. , Trohidou K. N.
Published: August 2003

We study the spatial distribution in aggregating systems of mixtures of magnetic and non-magnetic particles using Monte-Carlo simulations together with scaling arguments. In particular, we show that (a) as the system size grows, the fractal dimension of the composite system is dominated by the smaller fractal dimension, (b) the system is realized as a back-bone consisting of magnetic particles (lower fractal dimension) with denser regions of non-magnetic particles attached to it at random positions. Using simple connectivity features observed in pure magnetic and non-magnetic clusters and self-similarity arguments we predict, via Real-Space-Renormalization, fractal exponents Dm = 1.25 ± 0.05 for the magnetic clusters and Dnm = 1.4 ± 0.1 for the non-magnetic clusters.
On the Fractal Structure of Galaxy Distribution and its Implications for Cosmology
Authors: Baryshev Yurij V. , Labini Francesco Sylos , Montuori Marco , Pietronero Luciano , Teerikorpi Pekka
Published: August 2003

Two fundamental empirical laws have been established in the analysis of galaxy space distribution. First, recent analyses have revealed that the three-dimensional distribution of galaxies and clusters is characterized by large-scale structures and huge voids: such a distribution shows fractal correlations up to the limits of the available samples. This has confirmed the earlier de Vaucouleurs power-law density — distance relation, now corresponding to a fractal structure with dimension D ≈ 2, at least, in the range of scales ~1 ÷ 200 Mpc (H0=55 km/sec/Mpc). An eventual cut-off towards homogenization has not been yet identified. Second, since Huble's discovery, the linear redshift-distance law has been well established within 200 Mpc and also much deeper. The co-existence of these laws within the same scales is a challenge for the standard cosmology, where the linear Hubble law is a strict consequence of homogeneity of the expanding universe. This puzzle is now sufficiently strong to raise doubts for the standard cosmology.
Deterministic Tree Networks for River Drainage Basins
Authors: Errera M. R. , Bejan A.
Published: August 2003

This paper shows that the dendritic patterns formed by low-resistance channels in a river drainage basin are reproducible and can be deduced from a single principle that acts at every step in the development of the pattern: the constrained minimization of global resistance in area-to-point flow. The river basin is modeled as a two-dimensional territory with Darcy flow through a saturated heterogeneous porous medium with uniform flow addition per unit area. From one step to the next, small elements of the porous medium are dislodged and removed in ways that minimize the global flow resistance. The removed elements are replaced by channels with lower flow resistance. The channels form a dendritic pattern that is deterministic, not random. The finest details of this structure are sensitive to internal properties and external forcing, i.e. variations in the local properties of the flow medium, and the manner in which the total area-to-point flow rate varies as the structure develops. Remarkably insensitive to such effects are the basic type and rough size of the flow structure (channels versus no channels, dendrite, number of branches) and the minimized global resistance to flow.
Entropy Spectrum of Self-Affine Fractal Interfaces Created by Generators
Authors: Katsuragi Hiroaki , Honjo Haruo
Published: August 2003

Entropy spectrum of self-affine fractal interfaces created by contraction maps is investigated. Interfaces are created by a single (or multi-) generator(s) all of whose segments have the same anisotropy of scaling and different scaling factors. The whole interface is decomposed into many subsets and h (topological entropy), λ (decay exponent), DD (divider dimension) and DB (box dimension) of each subset are calculated. Entropy spectrum is obtained from the relation between h and λ. We find that H (Hurst or roughness exponent), DD and DB for only the remaning subset at n =∞ are related as [Formula: see text] and DB = 2 - H.
On Stability of Fractal Interpolation
Authors: Feng Zhigang , Xie Heping
Published: August 2003

In this paper, a special kind of FIF (fractal interpolation function) is studied. The authors prove the stability of the fractal interpolations. When the interpolation data have a small perturbation, the corresponding FIFs also have a small perturbation.
Fractal Based Image Analysis of Human Trabecular Bone using the Box Counting Algorithm
Authors: Osman Daniel , Newitt David , Gies Alice , Budinger Thomas , Truong Vu Hao , Majumdar Sharmila , Kinney John
Published: August 2003

An image texture measure based on the box counting algorithm is evaluated for its potential to characterize human trabecular bone structure in medical images. Although bone images lack the self-similarity of theoretical fractals, bone images are candidates for characterization using fractal analysis because of their highly complex structure. The fractal based measure, herein called the box counting dimension (BCD), is an effective dimension, and does not imply an underlying fractal geometry. The importance of resolution in quantifying bone characteristics using the BCD is addressed. The relationship of BCD to standard measures of trabecular bone structure is also analyzed. To evaluate the variability of the BCD with change in resolution, the BCD is determined for two sections from each of seven 3D X-ray Tomographic Microscopy (XTM) images of human radius bone specimens, while the resolution is varied using lowpass filtering. An automated method of choosing the range of scales for the fractal analysis curve regression is used. The relationship of BCD to trabecular bone width and spacing is analyzed both for the XTM images and for simulated images representing idealized structures. The range of BCD values is 1.21–1.54. Variation in BCD over a range of resolutions is found to be small compared to the variation in BCD between different bone specimens. Maximum change in BCD over a large range of resolutions (17.60–176 microns per pixel) is 0.08. BCD decreases as space between trabeculae increases. Fractal based texture measures may potentially allow clinical monitoring of changes in bone structure — for example, using Magnetic Resonance Imaging at 150–200 micron resolution.
Morphology of Polymer-Salt Complex Films Crossover from Fractal to Compact Aggregation
Authors: Bhattacharyya Aninda Jiban , Banerjee S. , Middya T. R. , Tarafdar S.
Published: August 2003

In this paper we present a study of the variation of morphology of polyethylene oxide (PEO) films complexed with ammonium perchlorate ( NH 4 ClO 4) formed by evaporating a methanolic solution. Films with salt concentration x = 0 - 0.35 (x is the weight fraction of salt) were prepared for the morphology study. The wide varitey of structures obtained were systematically studied by photographs and polarizing microscopy. Some preliminary studies of x-ray diffraction, differential scanning calorimetry and variable temperature polarizing microscopy have also been done to identify the various phases present in the films.
Similarity between the Dynamic and Parameter Spaces in Cubic Mappings
Authors: Cheng Chia-Chin , Liaw Sy-Sang
Published: August 2003

We have extended the work of Lei Tan on the similarity between the Mandelbrot set and the Julia sets. We show that the fractal structures of dynamic and parameter spaces are asymtotically similar at Misiurewicz points for the cubic mappings.
How to Quantify 'Small-World Networks'?
Authors: Herzel Hanspeter
Published: August 2003

Recently Watts and Strogatz emphasized the widespread relevance of 'small worlds' and studied numerically networks between complete regularity and complete randomness. In this letter, I derive simple analytical expressions which can reproduce the empirical observations. It is shown how a few random connections can turn a regular network into a 'small-world network' with a short global connection but persisting local clustering.
(max, +) Dynamics Systems for Modeling Traffic with Long-Range Dependence
Authors: Chapeau-Blondeau François
Published: August 2003

A simple first-order recurrence in a (max, +) dynamic system is numerically investigated and shown to exhibit statistical long-range dependence, characterized by slowly decaying aggregated variances and power-law evolutions of the autocorrelation and spectrum. We propose this model as a basis for a very parsimonious modeling of some long-range dependent processes such as data traffic.
Diffraction by a Fractal Transmittance Obtained from a Multiplicative Superposition of Periodical Rectangular Functions
Authors: Lehman M.
Published: August 2003

The Fraunhofer region of one-dimensional fractal diffraction grating is studied when this grating is defined using a set of scaled periodical (and rectangular) functions. The fractal structure is obtained through a Cantor density function, which is defined from an incremental product of such periodical components. Each of these components can be filtered individually and so, the corresponding intensity pattern can be evaluated. A mathematical foundation for such decomposition is developed using the concept of characteristic (or indicator) function of a set.

Graphic results are shown and the partial self-similarity of lateral intensity distribution calculated in any transversal plane to the optical axis for a certain value of magnification. With these results, fractal, periodical and intrinsic periodical domains can be distinguished to characterize the intensity patterns.

The self-similarity of intensity distributions and the contrast of that function are calculated for different states of the Cantor transmittance.
Obtaining Variable Pulse Fractals in Fabry-Perot Interferometer
Authors: Gascon F. , Galvan A.
Published: August 2003

This article aims to define the conditions required in order that the series given by the amplitude transmitted in a non-constant pulse in a Fabry-Perot interferometer is a fractal series. This means obtaining the appropriate expressions so that the amplitude transmitted by a beam whose rays change amplitude in time, that is, a beam whose energy varies while is incident on the interferometer produces fractal figures.
Unique Dendritic Patterns in Organic Thin Films
Authors: Gao Hongjun , Canright Geoffrey S. , Pang Shijin , Sandler Ilya M. , Xue Zengquan , Zhang Zhenyu
Published: August 2003

We present the formation of unique and striking dendritic "seahorse" patterns in the growth of fullerene-tetracyanoquinodimethane ( C 60-TCNQ) or pune TCNQ thin films. The films were fabricated by an ionized-cluster-beam deposition method. Energetic neutral and charged clusters were deposited on amorphous carbon substrates. Transmission electron microscopy reveals that the elemental pattern is a "seahorse" — that is, an S-shaped form, with "fins" on the outer edges of the curved arms forming the S. Such forms possess an approximate symmetry under rotations by π, but strongly break two-dimensional inversion symmetry. A novel formation mechanism is proposed, involving the aggregatio of neutral and charged clusters, such that some electrostatic charge is trapped on each growing island. This charge gives rise to a long-range field which biases the growth in a nontrivial way. The broken symmetry arises from the strong amplification of noise in the diffusive aggregation process by the effects of the electro-static field — that is, the symmetry breaking is spontaneous. This picture is tested by applying a transverse electric field during growth: for sufficiently strong fields, the S-shaped "seahorses" lose their curvature, while retaining the feature of having two main arms. These results demonstrate the importance of electrostatic effects in the growth process, and are consistent with the growth mechanism described here.
Fractality and Self-Organized Criticality of Wars
Authors: Roberts D. C. , Turcotte D. L.
Published: August 2003

This paper considers the frequency-size statistics of wars. Using several alternative measures of the intensity of a war in terms of battle deaths, we find a fractal (power-law) dependence of number on intensity. We show that the frequency-size dependence of forest fires is essentially identical to that of wars. The forest-fire model provides a basis for understanding the distribution of forest firest in terms of self-organized criticality. We extend the analogy to wars in terms of the initial ignition (outbreak of war) and its spread to a group of metastable countries.
Analysis of Terrestrial Radioactive Contamination
Authors: Makarenko N. , Karimova L. M. , Demchenko B. I. , Novak M. M.
Published: August 2003

The physics of terrestrial radioactive contamination is complex, primarily due to the mixtures of radionuclides, their migration, the effects of soil chemistry, and the prevalent climate. Consequently, application of classical techniques is inappropriate in modeling such an environment. The classification of territories contaminated with radioactive isotopes is vital in establishing a detoxification plan. Application of the fractal geometry provides a good insight and helps in such classification. Several techniques are implemented to determine geometric aspects of contaminated fields, and these show a way to differentiate between natural and man-made isotopes.
Self-Similar Functions Generated by Cellular Automata
Authors: Peitgen Heinz-Otto , Rodenhausen Anna , Skordev Gencho
Published: August 2003

The self-similarity properties of the functions (closed relations) associated with one- and two-sided cellular automata are studied. It turns out that these functions are generated by sequential machines, and their graphs are fractal sets generated by hierarchical iterated function systems. The Hausdorff dimensions of the graphs is one for one-sided cellular automata and two for two-sided automata.
Spectral Analysis of Multichannel Meg Data
Authors: Chen Zhihau , Tretyakov Alex , Takayasu Hideki , Nakasato Nobukazu
Published: August 2003

We use the Discrete Wavelet Transform in order to study the power spectrum of data obtained in magnetoencephalographical measurements. α-wave phenomenon is found to occur independently 1/fβ noise, which is present over almost all channels. the β value is close to 1.
Fractal Modeling Applied to Reservoir Characterization and Flow Simulation
Authors: Smidt Jesper M. , Monro Donald M.
Published: August 2003

Image analysis was carried out on images of laboratory-made synthetic sandstone, which is used in air injection/in situ combustion experiments, and statistically similar sandstone was computer modeled in two (and three) dimensions. The pore space of both the synthetic and the modeled sandstones was found to be fractal. The equations governing the flow through porous rocks were developed, approximating the in situ combustion process with an immiscible displacement of resident oil by injected gas maintained at a constant pressure. A successive over-relaxation (SOR) scheme was applied to solve these equations. Finally, the similarity of simulations of flow through the laboratory-made synthetic and the computer-modeled sand-stones was demonstrated.
Quality Assurance at Continuous Hot-Dip Galvanizing Lines by Neuro-Model Assisted Fuzzy-Control
Authors: Wagner Stefan , Kochs Hans-Dieter
Published: September 2003

The importance of improving product quality at continuous hot-dip galvanizing lines with air knives steadily grows. So the developed solutions have to be intelligent, adaptive and modular. This paper describes the revision of a conventional non-adaptive control strategy towards a modern solution using methods of computational intelligence. The already existing feedforward control is complemented by a neural process model and a neuro-fuzzy controller replaces the previously used conventional process controller. Both components are embedded carefully into the control environment so that consumption of time and material for the installation period can be held low. The neural process model is optional and is used for model-based control so that the process inherent measurement dead-time is avoided. The new control arrangement is adaptive, saves zinc, guarantees a more constant coating and relieves the operators.
A Development Tool for Analog Fuzzy Controllers: Features and Applications
Authors: Scheffler Michael , Rovatti Riccardo , Bellini Alberto
Published: September 2003

This paper describes an integrated development tool for analog fuzzy controllers which exploits analog hardware implementation and fuzzy logic flexibility to allow an easy and extremely low-cost synthesis of non-linear control laws. The core of the final implementation is a modular general-purpose analog fuzzy engine (AFE) with good speed performance and built-in temperature compensation. To ease field prototyping, a digitally-programmable version of AFE is provided with a software layer computing the biasing voltages needed by the circuit to fit numerical data and/or linguistic rules specified by the users. Once that the application is fine-tuned, a further software module is able to generate an optimized version of AFE dedicated to the task. An example application shows that this approach can lead to the implementation of effective analog controllers fulfilling industrial requirements.
Possibilistic Residuated Implication Logics with Applications
Authors: Liau Churn-Jung
Published: September 2003

In this paper, we will develop a class of logics for reasoning about qualitative and quantitative uncertainty. The semantics of the logics is uniformly based on possibility theory. Each logic in the class is parameterized by a t-norm operation on [0,1], and we express the degree of implication between the possibilities of two formulas explicitly by using residuated implication with respect to the t-norm. The logics are then shown to be applicable to possibilistic reasoning, approximate reasoning, and nonmonotonic reasoning.
Type 2 Fuzzy Sets: An Appraisal of Theory and Applications
Authors: John Robert
Published: September 2003

This paper provides a guide and tutorial to type 2 fuzzy sets. Type 2 fuzzy sets allow for linguistic grades of membership thus assisting in knowledge representation. They also offer improvement on inferencing with type 1 sets. The various approaches to knowledge representation and inferencing are discussed, with worked examples, and some of the applications of type 2 sets are reported.
Separating Power of a Fuzzy Set and Decreasing Rearrangement
Authors: Dujet Christiane , Kaddour Hamza Si
Published: September 2003

Let E be a set and f a characteristic property of E. The problem is that often elements of E have the property f with some degree and then we must find some process to make a "good partition" of E. In 1980, Dujet introduced the notion of separating power of a fuzzy set which gives, in many cases, a "good partition" called max-separating partition. In this paper, we discuss some ways to give a "good partition". This is achieved by the use of the decreasing rearrangement of a function. We prove that the measure of separation of a function is invariant through the corresponding decreasing rearrangement function and moreover it is possible to recover the initial max-separating partition by a knowledge of the max-separating partition of the decreasing rearrangement by an algorithmic way.
Interval Methods in Knowledge Representation
Authors: Kreinovich Vladik
Published: September 2003

This section is maintained by Vladik Kreinovich. Please send your abstract (or copies of papers that you want to see reviewed here), to vladik@cs.utep.edu, or by regular mail to: Vladik Kreinovich, Department of Computer Science, University of Texas at El Paso, El Paso, TX 79968, USA.
A Multi-Country Analysis of Bank Capital and Earnings
Authors: Barth James R. , Gropper Daniel M. , Jahera John S.
Published: August 2003

The purpose of this paper is to analyze the relationship between bank capital and earnings. However, because banks and other financial service firms are increasingly operating in a global marketplace, it is important to examine bank relationships beyond the borders of a single country. This paper, therefore, analyzes the relationship between bank capital and earnings employing a sample of 231 banks in ten Pacific basin countries and the United States. More specifically, following the lead of earlier research, the study examines the relationship between the capital-to-asset ratio and return-on-equity. The empirical results indicate that, contrary to the case of U.S. banks during the 1980s, a significant negative relationship exists between these two variables for the sample banks in the eleven countries in 1994. This relationship generally holds when various control variables, including both firm- and country-specific variables, are included.
Money Markets in the U.S. and Taiwan
Authors: Francis Jack C. , Wu Tsing Tzai
Published: August 2003

This paper compares and contrasts the money markets and related markets for financial commodities that exist in the U.S. with those in Taiwan. The contrast is enriched because the U.S. markets are larger and more highly developed than those in Taiwan. This difference is enlightening because the two countries are similar in terms of their willingness to let economic competition shape progress.

Several decades ago the U.S. markets were what the Taiwan markets are today. But, decades of growth and competition have created an efficient model in the U.S. in which smaller and/or younger countries can emulate if they wish to develop a free market system that is able to grow and compete in the world economy. Taiwan's policy-makers must decide if they want to ignore the U.S. model, copy some parts of the existing U.S. model, or try to pattern their development after the U.S. model as closely as possible.

The paper begins by explaining the difference between brokers and dealers. Then the bill markets in the U.S. and Taiwan are compared and the credit guarantees sold by money market dealers in Taiwan are discussed. The market for federal funds in the U.S. is described and it is observed that Taiwan does not have a similar market. The existing markets for bankers acceptances, certificates of deposits (CDs), Eurodollars, and commercial paper in the U.S. and Taiwan are compared and found to be similar in nature, if not in size.

The paper also offers suggestions that Taiwan could implement to improve the liquidity and growth of its money market, and this discussion is generalized to Taiwan's broader economic development. Essentially, Taiwan suffers from limited cross-border activity and from its lack of a derivatives market. Derivatives include financial futures contracts, put and call options on economic quantities, swaps, and other hybrid financial instruments. Derivatives markets have been developing rapidly in New York City, Chicago, London, and Tokyo during the past 25 years. The derivatives markets that exist at organized exchanges in these cities are easy to observe, but over-the-counter derivatives market is larger and is growing more rapidly.
Some Problems on Commercial Banking in China
Authors: Jen Frank C.
Published: August 2003

In this paper, I discussed two problems faced by commercial banks in China in the early to mid 90's when inflation rate was high. The first problem is the use of interest rates indexed to inflation to stop disintermediation of bank deposits during the high inflation period. I observed that commercial banks cannot easily recover the additional cost of funds due to inflation from their borrower. Nor can the banks hedge the inflation risk in a public market. Banks accepting inflation-indexed deposits will then be exposing themselves to high bankruptcy risk. A proposal of offering deposit products that are denominated in RMB but indexed to gold or US$ prices is recommended as replacements for inflation-indexed deposits because for both deposit products, banks can hedge the fluctuations in interest rates through international public markets. The second problem is how banks can serve as effective monitors of economic performances of the State-Owned-Enterprises (SOEs) by allocating more credit to more efficient SOEs and by refusing credit to very weak ones. I review the problems currently faced by managers in the SOEs and in the commercial banks. I then recommend managers in commercial banks to be trained as effective loan managers capable of helping SOE managers build good businesses. Further, they have to conduct their own businesses in a very professional manner.
A Brief Introduction to Capital Markets in Taiwan, R.O.C.
Authors: Yang Chau-Chen , Chen David M. , Lee Cheng-Few
Published: August 2003

The main purpose of this paper is to provide a brief introduction to the current status and future prospects of capital markets in Taiwan. Annual summary statistics of stocks traded on the Taiwan Stock Exchange are presented. In addition, summary of statistics of stocks and bonds traded on OTC of Taiwan is also discussed, and ownership structure of the companies listed on the Taiwan Stock Exchange is analyzed. Finally, future perspectives of equity markets in Taiwan are analyzed in some detail.
Price Transmission and Market Openness
Authors: Wu Lifan , Sarkar Asani
Published: August 2003

This paper studies the degree of impact of stock prices listed on the New York Stock Exchange and Tokyo Stock Exchange regarding price behavior in Asian stock markets. Our evidence shows that the pattern and magnitude of impact varies. Returns in Hong Kong, Singapore, and Malaysia are more sensitive than those in Taiwan, Korea and Thailand. The response patterns in the Asian markets suggest that foreign influence is significantly correlated to the degree of market openness.
The Role of Institutional Traders around Section Switches on the Tokyo Stock Exchange
Authors: Lamba Asjeet S. , Ariff Mohamed
Published: August 2003

In this paper we analyze the trading behavior of major market participants around switches from section 2 to section 1 of the Tokyo Stock Exchange (TSE). Previous research has shown that firms switching to section 1 earn significant positive abnormal returns around the switch date. It has been argued that the abnormal returns earned by these firms are driven by the trading strategies of a few large mutual funds that dominate trading on the TSE. If these large mutual funds have prior information about impending switches, and are exploiting this information, their trading strategies would be more obvious in periods when a large number of firms switch to section 1. Based on the observation that a much larger proportion of firms switch to section 1 in September than in other months, we examine the pricing and trading volume behavior of firms switching to section 1 in September and other months during the years 1984–1992. We find significantly higher abnormal returns for firms switching in September than in other months. Also, firms switching in September experience a significant and persistent increase in excess trading volume compared with firms switching in other months. Taken in conjunction with the abnormal return results, this evidence is consistent with a persistent buying behavior on the part of large mutual funds prior to an impending switch to section 1.
Financial Patterns of Government-Owned Manufacturing Firms in Taiwan
Authors: Tu Yu-Chen , Vasconcellos Geraldo M. , Kish Richard J. , Kramer Jonathan K.
Published: August 2003

Empirically-based financial patterns, the long-term stability of these patterns, and the distribution properties of financial ratios have received a considerable amount of attention in recent years for both U.S. and U.K. firms. However, limited research exists concerning the financial patterns for government-owned firms in Taiwan. Moreover, the prior studies offered little evidence about the probability functions of the actual distributions of financial ratios. Using data from twelve government-owned manufacturing firms in Taiwan during the period 1978–1993, the financial patterns of six classifications are developed. The analysis identifies that these patterns are relatively stable over the empirical period even though the magnitude of many underlying ratios changed. The six major ratios identified are not normally distributed. The distributions are either J-shaped, regular, or skewed, which is consistent with prior studies. The probability functions developed in this study can help to refine the rating processes in performance evaluation. This study develops a generalized empirical model using financial ratios that can be utilized for evaluating the performance of government-owned firms in any industry.
The Relationship among Volatility, Volume, Bid-Ask Spread and Number of Brokers
Authors: Fung Hung-Gay , Hwang Chuan-Yang , Leung Wai-Kin
Published: August 2003

This study is the first to use minute-by-minute data to examine the simultaneous interrelationship among volatilities, volume, bid-ask spread, and the number of brokers for three actively-traded Hong Kong companies between October 2 and December 29, 1995. The results indicate that high volatility is typically associated with high volume, a large bid-ask spread, and a large number of brokers. Volume is found to be positively related to volatility and negatively related to the number of brokers. This result confirms the observation that large stock trades in Hong Kong are conducted by a small group of brokers who derive business primarily from the institutional investors. More brokers and high volatility tend to increase the bid-ask spread, while high volume decreases it. Finally, we find that the number of participating brokers in the market is positively related to the lagged volatility and negatively related to the lagged volume and bid-ask spread.
Information Structure, Trading Behavior and Stock Prices in the Thai Market
Authors: Khanthavit Anya
Published: August 2003

This study examines the information and trading behavior of investors in the Thai market. This market is an important emerging market in the Pacific Rim, whose structure is different from that of a more developed market. We propose a vector autoregression model to describe and test action and reaction of the portfolio reallocation of investors and the movement of stock prices over time.

Using daily market data from January 3, 1995 to October 27 1997 , this study finds that, in the Thai market, the foreign investors bought stocks when prices had risen. This strategy was consistent with a positive autocorrelation in the stock return. The local individual investors bought stocks when prices had fallen, while the local institutional investors disregarded past price changes. These two investor groups also exhibited herd behavior of both informational cascades and interpersonal communications types. They followed each other and reacted negatively to an innovation in the stock return.

It is interesting to find that the foreign investors brought new information into the market. The local individual and local institutional investors brought in noise, but the explanatory share of this noisy information in the stock volatility was small. So, the study concludes that the volatility in the Thai market was not excessive.
The Investment Strategy of Free Cash Flow Multiple
Authors: Chu Eric Liluan
Published: August 2003

This study applies the investment strategy recommended by Hackel and Livnat (1993), the free cash flow (FCF) multiple, in Taiwan after the promulgation of Taiwan's FASB No. 95 in 1989. The results indicate that the portfolio with the higher FCF/Price ratio significantly rewards returns in excess of the market.

Instead of using earnings/price ratio in the forming portfolio, the study shows that the decile portfolio with the highest FCF/Price ratio significantly outperforms the market during the period from 1990 to 1994. If daily returns are adjusted by the market model, the decile portfolio presents an average 20.5268% cumulative abnormal returns in the testing period, which is statistically higher than zero. The results also indicate that the annual cumulative abnormal returns of the FCF/Price ratio based portfolio are all positive. The annual results also show that the decile portfolio performs much better when the market declines significantly. The outperformance still exists if returns are adjusted by the market without considering risk. The decile portfolio presents an average 8.198% abnormal with a significant t value returns.

The superiority of free cash flow in forming portfolio exists but with a decreasing trend when the portfolio is enlarged. The result implies that either the firms with extremely high FCF/Price ratios are undervalued by the market or the market responses slowly to their superior performance in cash flows.

The finding supports Hackel and Livnat's (1993) arguments. It suggests that free cash flow is useful information especially for the forming portfolio. The results also enhance the usefulness of the statement of cash flow.
A Century of Economic Development in Taiwan
Authors: Lin Jong-Shong , Leung Stewart K. C. , Chen David M.
Published: August 2003

This paper provides a brief summary of Taiwan's economic development in the past century in three broad stages: colonial foundations (1895-1940), dark ages (1941-1960), and reforms to miracle (1961-1994) .The historic perspective adopted here clearly indicates the strength and weakness of an export-led economy built on low-tech manufacturing. Though domestic savings and foreign reserves are high, Taiwan is short of an updated technological infrastructure and an effective financial system. Corporate strength is also rare. With a well-defined government policy allowing appropriate funds to be channeled to long-term finance to reinforce industrial banking, it is conceivable that the economy can be revitalized. Because success in industrial banking depends on initiative, efficiency and fair distribution of capital, it is imperative that a strategy of such significance be implemented by the private sector.
Dynamic Foreign Currency Trading Guided by Adaptive Forecasting
Authors: Chen An-Sing , Leung Mark T.
Published: August 2003

The difficulty in predicting exchange rates has been a long-standing problem in international finance as most standard econometric methods are unable to produce significantly better forecasts than the random walk model. Recent studies provide some evidence for the ability of multivariate time-series models to generate better forecasts. At the same time, artificial neural network models have been emerging as alternatives to predict exchange rates. In this paper we propose a nonlinear forecast model combining the neural network with the multivariate econometric framework. This hybrid model contains two forecasting stages. A time series approach based on Bayesian Vector Autoregression (BVAR) models is applied to the first stage of forecasting. The estimates from BVAR are then used by the nonparametric General Regression Neural Network (GRNN) to generate enhanced forecasts. To evaluate the economic impact of forecasts, we develop a set of currency trading rules guided by these models. The optimal conditions implied by the investment rules maximize the expected profits given the expected changes in exchange rates and the interest rate differentials between domestic and foreign countries. Both empirical and simulation experiments suggest that the proposed nonlinear adaptive forecasting model not only produces better forecasts but also results in higher investment returns than other types of models. The effect of risk aversion is also considered in the investment simulation.
Contribution of Financial Conditions to Successful Industrialization in East Asia
Authors: Peter Gray H. , Fetherston Thomas A.
Published: August 2003

The economic success of the East Asian economies has been undisputable. In analyses of these accomplishments, attention has been given to virtually everything but the role of what are broadly interpreted as financial variables. This paper develops the contributions of financial phenomena to the East Asian success and argues that favorable financial conditions are necessary, but not sufficient for good long-term economic performance.
Empirical Analysis of Interdependency and Volatility among Asian Stock Markets
Authors: Chiang Thomas C. , Jiang Christine X.
Published: August 2003

This paper presents an integrated time series model to analyze the interdependence and volatility among five major Asian stock markets, including Taiwan, Hong Kong, Korea, Singapore, and Japan. The model accounts for autoregression, cross correlation, error correction term, and GARCH effect. The evidence indicates that these five Asian stock markets follow at least one common stochastic trend. The stock returns for four of these Asian markets are contemporaneously correlated with those of Japan, while their correlations with the US stock returns take a one-day lag. Our evidence also shows some dynamic adjustment involving an error correcting process. Finally, the GARCH effect is present in all of the variance equations although we fail to find the GARCH-in-mean supported by the data.
An Empirical Analysis on IPO Underpricing and Performance of Newly Privatized Firms in China
Authors: Kim Sangphill , Rui Meng , Xu Peter
Published: August 2003

Using 45 Initial Public Offerings (IPOs) on the Shanghai Stock Exchange in 1993, we find that the average initial period return is 594 percent or 2.44 percent per day between the offer date and the listing date. Our results support the political persuasion hypothesis that has been postulated in previous studies on IPOs in other emerging markets. An IPO in China is also a newly privatized firm. Based on a subset of the IPO sample, we find significant increases in profitability and productivity after privatization. But the improvement in performance is not strongly related to the percentage of total shares retained or controlled by the government.
Administration of Foreign Share Ownership Restrictions
Authors: Lau Sie Ting , Mclnish Thomas H.
Published: August 2003

In many cases foreign ownership restrictions have led to the division of the shares of a firm's stock into foreign and local tranches traded separately. We examine two problems connected with the separation of the market for foreign and local shares. We show that when separate trading in the foreign and local shares begins liquidity is reduced, especially for local investors. Further, we document a number of cases of uncompensated wealth transfers from foreign to domestic investors. To address these two problems, we propose a system in which all shares are traded in a single market and foreign holders are required to purchase Foreign Ownership Registration Rights (FORRs) in a separate market. We argue that this system will increase liquidity for both local and foreign investors. We also propose a number of rules concerning the way these restrictions are administered. These rules are designed to reduce agency problems such as uncompensated wealth transfers and to increase fairness.
Taiwan's Role in the Asian Financial Crisis
Authors: Wu Rong-I
Published: August 2003

The depth of the 1997 Asian financial crisis has taken the world by surprise. Almost all major East Asian economies had experienced significant falls both in currency and share price. Some countries have been left with tremendous economic difficulties after their currencies were severely battered. Taiwan has emerged from the crisis as a stabilizing force in the region with its economy comparatively unscathed. This paper discusses the performance of Taiwan's economy throughout the crisis by looking at several factors underlying the financial turmoil. Meanwhile, it gives evidence to support the devaluation of the New Taiwan dollar as of October 1997.
Economic Income Versus Accounting Income
Authors: Tung Samuel
Published: August 2003

There is a growing belief that historical-cost accounting is no longer a relevant or reliable means of valuing a firm's assets and liabilities. Economists consider economic income relevant for measuring profit and performance, while they consider accounting income misleading for these purposes. The critical issue of measuring economic income has received little attention. The purpose of this paper is to point out some of the problems involved in computing economic income and to present ways in which accounting income can be adjusted to make it a more viable measurement.
Business Education in Hong Kong
Authors: Chan Chi-Fai , Chan Chan-Leong , Cheng Wai-Lam
Published: August 2003

There is a big demand for business talents in Hong Kong. Nevertheless, business schools are not producing what businesses in the Special Administration Region (SAR) need. For this reason, administrators in business schools should adopt a strategic approach when they formulate their educational goals and strategies. Several key elements which are essential to the success of business schools are discussed in this paper: customer orientation, capabilities development, and relationship and network marketing. Based on the strategic approach, a number of recommendations are made: namely, the initiation of a student intake campaign, and the emphasis on better curriculum design, extra-curricular activities, alumni activities, and the adoption of an internal marketing approach.
Singapore Undergraduate Management Education at the Crossroads
Authors: Tan Teck-Meng , Tan Wee-Liang
Published: August 2003

University based undergraduate management education is at a major crossroads in Singapore as a new private management university will be established and admit students beginning in the 21st century, in the year 2000. This university will be a first in more ways than one: it is the first private university, and the first university with a concentration in management in Singapore. This situation provides an excellent opportunity to reflect on the issues facing undergraduate management education, especially since the new university possesses the unique opportunity to do things differently.
NATURAL EXISTENCE PROOF FOR LYONS SIMPLE GROUP
Authors: MICHLER GERHARD O. , WELLER MICHAEL , WAKI KATSUSHI
Published: August 2003

In this article we give a self-contained existence proof for Lyons' sporadic simple group G by application of the first author's algorithm [18] to the given centralizer H ≅ 2A11 of a 2-central involution of G. It also yields four matrix generators of G inside GL 111 (5) which are given in Appendix A. From the subgroup U ≅ (3 × 2A8) : 2 of H ≅ 2A11, we construct a subgroup E of G which is isomorphic to the 3-fold cover 3McL: 2 of the automorphism group of the McLaughlin group McL. Furthermore, the character tables of E ≅ 3McL : 2 and G are determined and representatives of their conjugacy classes are given as short words in their generating matrices.
THE IRREDUCIBLE COMPLEX REPRESENTATIONS OF THE BRAID GROUP ON n STRINGS OF DEGREE ≤ n
Authors: FORMANEK EDWARD , LEE WOO , SYSOEVA INNA , VAZIRANI MONICA
Published: August 2003

Let Bnbe the braid group on n strings. Earlier work of E. Formanek, W. Lee and I. Sysoeva classified the irreducible complex representations of Bnof degree ≤ n, except for n = 5, 6, 7, 8. Here the classification is completed using the theory of Hecke algebra representations.
ON SIMPLE FILIPPOV SUPERALGEBRAS OF TYPE B(0,n)
Authors: POJIDAEV ALEXANDRE P.
Published: August 2003

We show that there exist no simple finite-dimensional Filippov superalgebras of type B(0,n) over an algebraically closed field of characteristic 0.
ON SYMMETRIC RADICALS OVER FULLY SEMIPRIMARY NOETHERIAN RINGS
Authors: KOSLER KARL A.
Published: August 2003

Symmetric radicals over a fully semiprimary Noetherian ring R are characterized in terms of stability on bimodules and link closure of special classes of prime ideals. The notion of subdirect irreduciblity with respect to a torsion radical is introduced and is shown to be invariant under internal bonds between prime ideals. An analog of the Jacobson radical is produced which is properly larger than the Jacobson radical, yet satisfies the conclusion of Jacobson's conjecture for right fully semiprimary Noetherian rings.
CONGESTION AND CENTRALITY IN TRAFFIC FLOW ON COMPLEX NETWORKS
Authors: HOLME PETTER
Published: August 2003

The central points of communication network flow have often been identified using graph theoretical centrality measures. In real networks, the state of traffic density arises from an interplay between the dynamics of the flow and the underlying network structure. In this work we investigate the relationship between centrality measures and the density of traffic for some simple particle hopping models on networks with emerging scale-free degree distributions. We also study how the speed of the dynamics are affected by the underlying network structure. Among other conclusions, we find that, even at low traffic densities, the dynamical measure of traffic density (the occupation ratio) has a non-trivial dependence on the static centrality (quantified by "betweenness centrality"), where non-central vertices get a comparatively large portion of the traffic.
SURVIVAL AND EXTINCTION IN THE REPLICATOR MODEL: DYNAMICS AND STATISTICS
Authors: BOUZAT SEBASTIÁN , ZANETTE DAMIÁN H.
Published: August 2003

We study the multi-species replicator model with linear fitness and random fitness matrices of various classes. By means of numerical resolution of the replicator equations, we determine the survival probability of a species in terms of its average interaction with the rest of the system. The role of the interaction pattern of the ecosystem in defining survival and extinction probabilities is emphasized.
SIMPLE MODELS OF WAITING LISTS
Authors: RODGERS G. J. , YAP Y. J. , YOUNG T. P.
Published: August 2003

Motivated by recent empirical studies of the length distribution of hospital waiting lists, we introduce and solve a set of models that imitate the formation of waiting lists. Patients arriving in the system must choose a waiting list to join, based on its length. At the same time patients leave the lists as they get served. The model illustrates how the power-law distributions found in the empirical studies might arise, but indicates that the mechanism causing the power-laws is unlikely to be the preferential behavior of patients or their physicians.