Financial Management
An Empirical Study on the Effectiveness of China’s Capital Control and the Study’s Implication
Yu Yang andYang Haizhen
Since China has chosena de-facto fixed exchange rate and firmly kept the independence of the monetary policy, it has to implement capital control. However, the problem of capital’s outbound flight makes people doubt China’s ability in capital control. This paper presents an empirical study on the effectiveness of China’s capital control. Our empirical results show that China’s capital control is relatively effective in short term, but will be less so in long term.
The Recent Advances in the Theory and Method of Credit Risk
Gong Pu and He Xubiao
How to efficiently manage credit risk, a basic risk in banking industry, is a major concern for risk managers. This paper reviews, from the angle of information set, the basic theories and methods of credit risk management and the latest development of credit risk modeling. It also introduces researches on credit-derived products and their application, and explores the difficulties in credit risk research.
Application-Oriented Research
Decision Analysis of Quality Contingent Pricing with Information Asymmetry in Electronic Markets
Li Li, Yang Wensheng and Xie Yangqun
How to signal the quality of products is important for enterprises because of information asymmetry and quality uncertainty in electronic markets. At first, this paper establishes a model of optimal n-part pricing, and changes n-part pricing to 2-part pricing through transformation of decision structure. Based on the decision model of 2-part pricing, this paper discusses the proper application conditions of quality contingent pricing, arguing that quality contingent pricing can enlarge the share of market and increase profit expectation when the quality of products is underestimated in electronic markets. Furthermore, this paper analyses the strategies of optimal contingent pricing for a given quality threshold, optimal discount level and optimal quality threshold in 2-part pricing. These conclusions will help enterprises in their deciding the strategies of pricing in electronic markets.
On the Ethics Strategies in Internet Marketing
Liu Xianghui
A two-dimensional conceptual model of ethical evaluation for Internet marketing practices is developed, on the basis of which various ethics strategies in Internet marketing are discussed. It is argued that higher ethical level does not necessarily apply to all kinds of businesses. Finally, various influential factors are presented, which aim to help businesses formulate their optimum ethics strategies in Internet marketing.
Producer Services and Deepening of Division of Labour
Zheng Jichang
The article studies the relationship between producer services and deepening of division of labour. The modern producer services have changed not only the content and nature of service production, but also its position and function in national economy, as evidenced by the fact that the producer services have promoted the deepening of division of labour, and become the glue of economy of division of labour. Just because of this function, the producer services are becoming a driving force of economic development, a booster of competitive power in economic improvement and a basic engine of modern economic growth.
Factors Hindering Circulation Enterprises from Developing E-Commerce
Jia Shidong, Liu Puhe and Shen Donghua
Through a questionnaire covering over 600 key circulation enterprises nationwide, this paper makes an analysis deep into the current development of China’s e-commerce and detects five major factors hindering the development, which prove to be in conformity with what are thought internationally to be the hindering factors.
Enterprise Management
Controllability Principle in Performance Evaluation of Division Manager
Zhi Xiaoqiang
Based on principal-agency theory, we construct a model to analyze choice of performance standard and incentive degree in performance evaluation of division manager, and discuss theory basis and shortcoming of controllability principle. In the process of performance evaluation of division manager, we must tradeoff congruity and risk, tradeoff sensitivity and precision. Controllability principle is a special case of this tradeoff. That is, if two performance measures have the same sensitivity, we should choose the one that has higher precision.
Customer-Equity-Centered Diversification Strategy
Wang Tao and Li Zhenzhen
Diversification is always a puzzle for corporations in their developing routes. Then how to operate diversification correctly? After reviewing the theories in diversification, this article tries to analyze how to realize the diversification from a new perspective—customer equity. It also classifies and analyzes customer-equity-centered diversification operation from two aspects: the relatedness of corporations’ diverse operation and the extent of their involvement.
Public Management
Measuring the ‘Performance’ in Public Opinion: An Analysis of Applying the American Customer Satisfaction Index in Public Sectors
Wu Jiannan and Zhuang Qiushuang
The American Customer Satisfaction Index is a customer-based measurement system to evaluate and improve the performance of organization. The index makes it possible to compare the service of public sectors and that of private sectors, and so can enhance public satisfaction towards government. This article first analyzes the application of ACSI to public management sectors from three perspectives:application background, measurement model, and outcomeapplication. Then it discusses the advantages and disadvantages of the application.Finally some proposals on the establishment of the Chinese Customer Satisfaction Index for public sectors are put forward.
Management Forum
Impact of Increase of Industrial Fixed Capital on Economy
Fu Xue
The contribution of input elements to production within an industry can be estimated by Neoeconomics-based production function. The input-output model can evaluate the linkage between industries. By combining the two models we can investigate capital elements’ direct impact within an industry and their indirect impact between industries. The paper estimates the impact of the excessively increasing investment of fixed capital on the present economy, and suggests relevant economic policies.
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