bluuebunny/crossref_metadata_2025_split huggingface dataset:
China introduces margin trading and securities lending
Authors: Yang TieCheng , Wang Lucas 
Published: September 2007

PurposeThe aim of this paper is to explain the details of a trial program in China to introduce margin trading and securities lending.Design/methodology/approachThe paper describes eligibility requirements for securities companies and their clients; accounts for margin trading and securities lending to be opened by the securities company; contracts between a securities company and its client that must be entered into; collateral a client is required to provide to the securities company; a client's rights and entitlement with respect to collateral; internal rules and precautions required of the securities company; the securities company's risk control requirements; and the possible impact of the new program on foreign investors.FindingsThe paper finds that the conduct of margin trading and securities lending in China is highly regulated. There are significant requirements with respect to separate accounts, collateral, contracts, and controls. Before providing margin trading or securities lending to clients, securities companies are required to carefully assess and determine the identity, creditworthiness, assets, income, securities investment experience, investment preferences, and risk appetite of their clients. The securities company must explain how the margin trading and securities lending will be conducted and the content of the contracts to the client, and require the client to sign a transaction risk disclosure letter that specifies certain risks involved in such business. A client may only maintain margin trading facilities and securities lending business with one securities company in China.Originality/valueThe paper provides a practical guide to a new program by lawyers who are experts in Chinese securities regulations.
Path to investment success lined with hidden traps
Authors: Borg Joe 
Published: September 2007

PurposeThe purpose of this paper is to remind investment company compliance professionals of common traps for unwary investors, to emphasize the importance of detecting and preventing fraud in the marketplace that may affect individual investors, and to review basic investor rights and the importance of suitability for investment company clients.Design/methodology/approachThe paper explains the constant danger of investment fraud, lists the North American Securities Administrators Association's (NASAA's) top ten investor traps for 2007, reviews questions investment sales professionals should ask themselves concerning the suitability of every investment for a given client, and lists rights to which investors should be entitled before they make every investment.FindingsThe paper finds that the path to safe investing is littered with pitfalls likely to catch unwary investors. Investment fraud is on the rise. Before offering any investment, sales professionals should ask themselves several key questions. Investors can avoid becoming trapped in a fraudulent or unsuitable investment by recognizing that they have certain rights and demanding that these rights be upheld before they invest.Practical implicationsCompliance professionals should remember that the underlying purpose of most state and federal regulations governing investment companies is centered on investor protection and concerned with investment suitability and fraud prevention.Originality/valueThe paper provides useful information with regard to the pitfalls likely to catch investors who want to make successful investments.
Making a security and compliance investment: how to value what you pay for
Authors: Mazer Murray 
Published: September 2007

PurposeThe purpose of the paper is to emphasize the need for technology and people investments in security and compliance and to show the cost of not making such investments.Design/methodology/approachThe paper describes direct and indirect costs of database intrusions and data thefts, shows ways in which the cost of technology can be justified, and shows examples of how return on investment (ROI) can be calculated.FindingsThe paper finds that, in today's data‐sensitive climate, automation of stronger data protection practices has become an essential activity.Originality/valueThis paper is a practical reminder that security does not come without investment in appropriate automated systems along with related policies and other safeguards.
Buyback trading of open market share repurchase firms and the return volatility decline
Authors: Kim Jaemin 
Published: September 2007

PurposeThe paper seeks to examine changes in daily return volatility associated with open market share repurchases.Design/methodology/approachUnivariate analyses, control sample analyses, and multiple regression analyses are employed to explore relations between daily return volatility and a number of variables.FindingsThis study finds evidence that an open market share repurchase firm, by actively buying back its shares when the share price falls, reduces daily return volatility. The results suggest that it is the subsequent actual buyback trading activity, not the announcement, that is significantly negatively associated with changes in daily return volatility. CAPM beta, a measure of systematic risk, decreases only when the firm is in the market actively repurchasing its shares.Originality/valueTo the best of the author's knowledge, this study is probably the first to connect changes in daily return volatility to actual buyback trading activities of share repurchase announcing firms. Changes in daily return volatility, or total risk, not only affect systematic risk, but also are important to underlying option holders, arbitrageurs, and investors who hold undiversified portfolios.
The role of indemnification agreements and legal liability in railroad disasters
Authors: Walker Thomas J. , Thiengtham Dolruedee , Ozocak Onem , Barabanov Sergey S. 
Published: September 2007

PurposeThe study aims to examine the stock price performance of publicly owned railroad companies following severe railroad accidents that resulted in the loss of human lives and/or hazardous material spills. The focus is on legal liability considerations as one of the primary factors that drives a firm's abnormal performance following a given accident.Design/methodology/approachThis paper employs a sample of 97 railroad accidents that occurred between January 1967 and December 2006 and involved equipment (tracks and/or locomotives) owned by publicly traded US and Canadian railroad companies. The stock price reaction of the affected firms is examined following these disasters and a series of univariate and multivariate tests is used to investigate whether differences in abnormal returns following a given accident can be related to various factors that characterize the affected firm or the accident it was involved in.FindingsThe results suggest that legal liability considerations are one of the primary factors that determine a company's stock price reaction following a railroad disaster. Specifically, it is observed that firms that are likely to be sued in connection with an accident tend to incur larger stock price losses. On the other hand, it is found that firms that are protected through indemnification agreements suffer only insignificant price declines, even if initial accident reports hold them responsible for causing the accident.Originality/valueThe paper extends the prior literature on the stock market's reaction to firm‐specific catastrophic events. While there are a number of studies that examine the financial consequences of aviation disasters, there is to the authors' knowledge only one prior study that performs a similar analysis for railroad accidents.
The use of GARCH models for the calculation of minimum capital risk requirements
Authors: Floros Christos 
Published: September 2007

PurposeThe paper seeks to explain volatility and risk (VaR) modelling using data from international financial markets, and particularly to evaluate the performance of minimum capital risk requirements (MCRR) estimates in an out‐of‐sample period using the bootstrapping approach.Design/methodology/approachThis paper captures financial time series characteristics by employing the GARCH(p,q) model, and its EGARCH, threshold GARCH (TGARCH), asymmetric component (AGARCH) and component GARCH (CGARCH) extensions. Furthermore, under the bootstrapping approach, the MCRR for long and short positions over five‐day, ten‐day and 15‐day horizon periods is calculated. This paper uses daily data from the USA (Dow Jones, NASDAQ) and European (ASE, Greece; DAX, Germany; FTSE‐100, UK) financial markets.FindingsThe results show that higher capital requirements are necessary for a short position since a loss is more likely than for a long position.Research limitations/implicationsFuture research should examine the performance of multivariate time series models when using daily and monthly returns of international mature and emerging markets. Consequently, it is of interest to consider multivariate models to describe the volatility and market risk of several time series jointly, to exploit possible linkages that exist.Practical implicationsThe findings are strongly recommended to risk managers and modellers dealing with US and European financial markets.Originality/valueThe contribution of this paper is to provide new evidence from international equity markets to the modelling of financial time series by explaining volatility and VaR (MCRR) estimates in the US and European markets. This paper explains the functioning of financial markets and the process by which financing decisions are reached through risk modelling.
Dealing with panel data in accounting and managerial finance research
Authors: O'Connell Vincent 
Published: September 2007

PurposeGiven the importance of panel datasets in contemporary accounting and managerial finance research, the objective of this paper is to provide practical guidance for researchers who are inexperienced in dealing with panel estimation methodologies.Design/methodology/approachThe paper presents and implements a set of procedures designed to establish whether or not pooled estimation is a viable proposition in a given setting. The paper also explores the suitability of alternative estimation methodologies given the results from these test procedures. To illustrate the key concepts the paper utilises a simple model of the relationship between UK directors' cash compensation and three explanatory variables: accounting earnings; stock returns; and firm growth. This model is used solely for illumination purposes and the paper does not seek to contribute to the compensation literature.FindingsThe results demonstrate the potentially misleading inference in panel settings, which can arise from: pooled OLS, where there is parameter heterogeneity; and firm‐specific OLS, when the impact of unobservable factors is likely to cause omitted variables difficulties.Practical implicationsThe paper provides practical insights to researchers with respect to the appropriate ways of utilising the considerable benefits of panel estimation methodologies while simultaneously avoiding common errors.Originality/valueThis study presents guidance in a relatively non‐technical manner on an issue which has not received sufficient attention in the accounting and managerial finance literature to date, namely the procedures to follow in order to choose appropriate estimation methodologies when dealing with panel datasets.
Trend of knowledge management in China: challenges and opportunities
Authors: Peng Jian , Li‐Hua Richard , Moffett Sandra 
Published: September 2007

PurposeThe purpose of this paper is to explore challenges and opportunities in knowledge management (KM) research trends in China.Design/methodology/approachThe literature review presents the status quo of China KM research from a world‐wide perspective and China's economy today. Then the paper explains theoretical analysis of KM development and future trend in the West. The third part of literature review addresses the debate of KM practices followed by the way how KM trend is discussed in Western research. Empirical evidences from the journal literature, the web sites of consultancy companies, and in the presentation of research centres are examined. A triangulated methodology include data from two well known management database searching results for “China” and “Knowledge Management”; two KM surveys in China and other web site and journals.FindingsThe paper is an initial exploration of the KM research trends in China. The research explains the opportunities and challenges facing KM researchers and provides useful guidance for KM practice in China. In general, China has relatively newly developed KM awareness. The importance of KM, however, has not yet been fully explored in research. One the one hand, the lack of access to China practitioners, the scarceness of related comparative study and the arguable KM domain are three major reasons that lead to insufficient research in KM. On the other hand, given the rapid development of China's economy today, there are questions and phenomena with specific Chinese characters need to be examined from KM perspective. Two major challenges of China economy, i.e. reforming in the process of development, and the privatization as well as the regional difference need to be reflected in China KM research. Comparative approaches in the research are needed. Although KM is arguably undergoing fast development in recently years and China is becoming one of the important spotlights, China‐related KM research is still at its very early stage. Challenges and opportunities are presented for further research guidance.Originality/valueThis paper shows that KM research in China has its own characters if compare with the West. Future directions and opportunities for China‐related KM researches are discussed by a triangulated approach. The findings present future trends of KM research in China that help practitioner to reinforce KM practice. This paper suggests important areas that researchers need to address as new challenges and opportunities in the KM trends in China context.
Comparative analysis of managerial values in the USA and China
Authors: Chinta Ravi , Capar Nejat 
Published: September 2007

PurposeChina, one of the fastest growing economies in the world, has become a major trading partner with the USA. However, trading with Chinese involves major cultural barriers. The Chinese and US cultures differ widely in their values, which produces different attitudes and behaviors. This study purports to add to the existent knowledge on the managerial values in the USA and China by empirically comparing and contrasting these values along several dimensions.Design/methodology/approachThis empirical investigation examines the differences in managerial values between US and Chinese managers through independent sample t‐tests based on survey responses from 1,741 US and 982 Chinese managers.FindingsThe findings indicate that significant cultural differences exist between the two samples. Results show that US managers are more individualistic than their Chinese counterparts. The managerial values of the US sample are also characterized by lower power distance, uncertainty avoidance, and work ethics than the Chinese sample.Practical implicationsThe findings provide support for the conventional wisdom regarding the differences between the US and Chinese cultures.Originality/valueThe large sample sizes in the research study provide strong empirical support to existent theory.
R&D and economic growth in China on the basis of data envelopment analysis
Authors: Hu Baomin , Wang Lili , Yu Xinkai 
Published: September 2007

PurposeThis paper aims to explore the research and development (R&D) structure and the effect which R&D may have on economic growth in Hebei Province, PRC. Through the comparison of R&D efficiency in Hebei and that of seven other regions (with top economic performance in China), it tries to find out the right ways of improving R&D performance, in order to increase its contribution to economic growth. It concludes with practical suggestions for future R&D management in Hebei, and it also offers a useful evaluation framework for other regions.Design/methodology/approachBased on the analysis of R&D census in 2000 in China and an investigation of 532 large and medium enterprises in Hebei Province, this paper presents a data envelopment analysis (DEA) framework to measure the effects of R&D on economic growth in China. Regional comparisons of R&D efficiencies are also carried out.FindingsApplying the DEA model, this paper finds out the shortcomings of R&D structure in Hebei Province as well as problems in R&D efficiency compared to some other regions. The R&D scale of Hebei is still at the stage of increasing returns to scale, and its ratio of basic research: applied research: development should be adjusted to 2.9:10.4:86.7 instead of 5.7:2.6:67.6. Through the investigation of 532 large and medium enterprises between 1998 and 2000 in Hebei, it was also found that the indigenous innovation is currently the main pattern of Hebei's enterprises.Originality/valueWith the DEA model, this paper presents a useful evaluation model on R&D structure and contribution to economic growth in Hebei Province, PRC. A comparison of regional R&D efficiencies provides an important guideline for local governments with respect to future policy making. The framework used in Hebei Province in this paper offers a good reference for some other regions as well.
Relationship between the development of Chinese non‐state‐owned enterprises and its cultivation of scientific and technological competence
Authors: Du Lanying , Hou Jundong , Lü Jun 
Published: September 2007

PurposeTo study and validate the relationship between the development of Chinese non‐state‐owned enterprise (Chinese non‐SOE), and cultivation of scientific and technological competence empirically.Design/methodology/approachCorrelation analysis in SPSS is used to analyze the correlation between Chinese non‐SOE and cultivation of scientific and technological competence based on the statistic data released by China Statistical Bureau from 1987 to 2005. Furthermore, their relationship is validated by means of Granger causality test in Eviews 3.0.FindingsThis paper finds serial GDP of Chinese non‐SOE is a first difference stationary, while serial total funds of S&T activities of Chinese non‐SOE is a second difference stationary. After they are adjusted to be difference stationary, we find that there is not only a positive correlation, but also a bilateral Granger causality between the two variables.Practical implicationsFrom the point of view of a practitioner engaging in China trade, this study suggested that when all level governmental departments and all Chinese non‐SOE establish economic development strategies and policies for cultivating scientific and technological competence, the interaction relationship must be taken into consideration in order to avoid negative impact on the sustainable development of Chinese non‐SOE.Originality/valueThis study provides reference and benchmark to Chinese non‐SOE's development and will help to enhance its international competence.
Knowledge management in the Chinese public sector: empirical investigation
Authors: Cong Xiaoming , Li‐Hua Richard , Stonehouse George 
Published: September 2007

PurposeThis paper aims to examine knowledge management (KM) processes and its implementation in the public sector in China and seeks to identify success factors that influence KM and attempts to address various key issues in the process in a hope to raise awareness of KM as a potential solution to improve the performance in the public sector.Design/methodology/approachA case study and research experience are presented.FindingsThe study suggests that KM in the public sector still in its infancy and has a long way to go in the KM journey. However, the study has identified a certain number of factors that are essential to the success of the KM initiative and program in the public sector, of which, the appropriateness and effectiveness of knowledge sharing is more important in the public sector than in the private sector. The study examines current situation in terms of KM activities in the public sector in China and fuelled the debate concerning KM in the public sector.Practical implicationsThe outcome of the research could have significant implications for KM programs in public sector organizations in China.Originality/valueThis study is a comprehensive examination and analysis of the process of KM and its implementation in the public sector in China, incorporating both the cultural and organizational factors that play a role in the whole process. The paper describes and develops a framework of KM processes and implementation in the public sector as well as recommendations to practitioners about planning and implementing KM programs and initiatives.
Enhancing buildability in China's construction industry using Singapore's buildable design appraisal system
Authors: Jun Ying Liu , Sui Pheng Low 
Published: September 2007

PurposeThe construction industry in China is progressing at a rapid pace. There are many important issues to be considered in the Chinese construction industry, not the least of which is the distancing of the design aspects from the construction aspects of a construction project. Integrating design with construction through the buildability concept can yield many benefits relating to time, cost, quality and sustainable environment. The purpose of this paper is to propose how a building design appraisal system (BDAS) may be formalized to benefit the construction industry in China.Design/methodology/approachThis study explains the basic principles of buildability; describes the development and implementation of the BDAS in Singapore; demonstrates how buildability scores can be computed using the BDAS model; and proposes the measures that can be taken in China to populate buildability and formalize a similar BDAS model in the Chinese construction industry.FindingsThe construction industry in Singapore has benefited tremendously from the BDAS formalized by the relevant building authorities. The construction industry in Singapore possesses relevant knowledge and expertise in buildability. This skills set can likewise be transferred to China to improve the effectiveness and efficiency of the Chinese construction industry.Practical implicationsSome countries, like Singapore, have recognized the importance of buildability towards raising overall productivity levels in the construction industry. In the case of Singapore, the implementation of buildability principles in the construction industry have been formalized through the BDAS whose minimum buildability scores must be complied with by all property developments before building plans approvals are given by the relevant building authorities.Originality/valueThere is ample scope for China to review how the BDAS was implemented in Singapore and to consider how such a formalized system can be modified, adapted and transferred for application in the Chinese construction industry.