Financial Management
Analysis of Managerial Ownership Incentive in Public Corporation
Song Zengji，Zhang Zongyi and Zhu Jian
The issue of corporate governance related to the separation of ownership from control and the ability to align managerial and shareholder interests via the managerial ownership of equity remain a key topic of Chinese public corporations. By studying the factors on managerial ownership, we discover that the managerial shareholding has an effect on corporate performance. The firm shareholding has a significant positive effect on managerial shareholding, and state ownership and public shareholding has no relationship with managerial shareholding, which has significant positive relationship with firm risk and external director members. The fundamental resolution to the governance effectiveness of the ownership incentive in China is to set up a reasonable ownership structure and an effective capital market.
Identification and Formation Mechanism of Irrational Bubbles
Wang Lianhua and Yang Chunpeng
Behavioral finance provides some new ideas for the bubble theory by analyzing the formation mechanism of asset bubbles. Based on the extended DSSW model, we introduce the factor of overreaction into our model and describe the irrational bubble caused by noise traders. It is found that the irrational bubbles are related to such factors as misperception and overreaction of noise traders. A simulation analysis suggests that, given certain parameters, the proportion of noise traders affects the size of irrational bubble.
Unexpected Earnings, Modified Audit Opinions and Timely Report Exposure: An Empirical Research Based on Listed Companies’ Data from 2000 to 2003
Li Wei’an, Tang Yuejun and Zuo Jingjing
In view of the importance of timely exposing information, we develop five hypotheses based on overseas relevant researches and characteristics of Chinese stock market and listed companies, and then, based on the data in the annual reports of Chinese listed companies from 2000 to 2003, test the hypotheses through regression models to examine the relationship among unexpected earnings, modified audit opinions and timely report exposure. After controlling possible interference from financial leverage, securities exchange market, auditor switching, auditor size, ST institution and firm size, we get a result basically consistent with overseas researches. However, according to the model’ analytical results and the difference among these models, Chinese listed companies are more likely to be involved in earnings management and even profit manipulation, so we cannot safely conclude that timeliness of annual reports is positively related to magnitude of unexpected earnings and firm performance.
Research on the Disposition Effect Based on the Falling Stock Market
Chen Lei and Zeng Yong
Traditional finance theories discuss how investors should manage their portfolio, while the behavioral finance attaches importance to the analysis of how they actually behave. Behavioral finance can explain the anomaly and investor’s irrational experimentations in financial market, so it has a wider future than traditional finance. Disposition effect is an important part of behavioral finance. It describes the tendency of investors to hold losing investments too long and sell winning investments too soon. This paper tests the disposition effect based on the falling stock market by analyzing a large brokerage firm’s trading records, which include nearly 10000 accounts during the period of 2000-2002.
Application Research
Analysis on Risk Management of State-owned Oversea Enterprises from China Aviation Oil (Singapore) Incident
Yang Xiaoguang, Jerome Yen, Shi Min and Wang Shouyang
Based on the recent China Aviation Oil (CAO - Singapore) incident, in this paper, we present a comprehensive analysis on the risk exposure of overseas state-owned enterprises (SOEs) and provide an empirical estimation on VaR of CAO’s oil futures position. Based on the results of the above analysis, we provide some suggestions on the policy of risk regulation and internal control of overseas SOEs.
Research of Risk Decision Algorithm for Incomplete Information IT Project Based on Rough Set
Zhang Jinlong, Lu Xinyuan and Xie Gang
The traditional decision-making of project risk management is often judged by the manager through experiences, and most of them adopt the qualitative analysis method, which applies only to complete information. In this paper, the rough set theory is introduced into the field of IT project risk management, which is full of inevitable incomplete information. With the method of rough set, the incomplete information in knowledge system can be well dealt with, and the potential decision-rules are explored efficiently, then an algorithm of incomplete information risk decision based on rough set theory is offered. Finally, the final rule decision is provided by a quantitative way through a case.
Study on Activity-Based Cost Kaizen Control
Wang Fangjun, Wang Pingxin and Takao Makido
Activity-Based Management (ABM) establishes cost standard, while Kaizen control improves cost standard. Activity-Based Cost Kaizen Control combines the activity and process management perspective of ABM and the management philosophy of continuous improvement of Kaizen control. This paper discusses the characteristics of Kaizen control and ABM mode, proposes an activity-based cost Kaizen control model, which aims to analyze activity value addition, activity value multiplier and activity efficiency, then expatiates on the key implementing processes, and finally draws a conclusion.
Dynamic Game Analysis of Emergency Management
Yao Jie，Ji Lei and Chi Hong
An important characteristic and main difficulty of emergency management lies in the fact that the controller of an emergency must adjust his strategies dynamically according to the results from previous activities and the developing trend of the emergency. This paper analyzes the dynamic game between the “emergency controller” and the “emergency” within the framework of dynamic game model, and discusses how to form a precautionary plan through the game model.
Strategic Management
The Application of Options Theory to the Rating in Enterprises Strategic Alliances Technology
Li Tong, Wang Wenbo and Wang Hongqi
In this paper, the options rating theory is applied to strategic alliances technology rating field. And a theoretic frame for rating the technology resources is established through ascertaining the underlying variable attached by alliances technology system, thus providing a more suitable theoretic basis for establishing the technology alliances relationships between enterprises, and also for decision on the depth of cooperation between enterprises.
Mapping the Intellectual Structure of Research in Strategic Management
——A bibliometric study of author co-citation
Liu linqing
Quite different from other typologies, this paper uses an empirical method ——the author co-citation analysis—— to map the intellectual structure of research in strategic management. The results revealed the existence of three main subfields of research on the topic: the classic strategic management school, SCP paradigm, resource-based and competence-based views, which reflect three different stages of the research in strategic management.