...homepage: www.elsevier.com/locate/jbf Overseas listing as a policy tool: Evidence from China’s H-shares Qian Sun a,⇑, Wilson H.S. Tong b, Yujun Wu c a Department of Finance, School of Management, Fudan University, Shanghai 200433, China School of Accounting and Finance, Faculty of Business and Information Systems, Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong Special Administrative Region c Wealth Management Institute of Lujiazui, Shanghai 200122, China b a r t i c l e i n f o a b s t r a c t We investigate why the Chinese government chooses to perform share issue privatization (SIP) of its state-owned enterprises (SOEs) in Hong Kong, despite the benefit of facilitating the domestic stock market development if performing SIP in China (Subrahmanyam and Titman, 1999) and the higher cost to list in Hong Kong. We address this issue by arguing that the positive effect of SIPs on the development of the domestic market may have limitations, especially when the domestic market is not well developed and cannot absorb rapid and large-scale SIP activities. To maintain domestic market order, it may be optimal to carry out SIP in overseas markets. Furthermore, by listing shares in developed overseas markets, SOEs from the less developed countries could leverage on the overseas markets’ better accounting, governance, and legal standards. By examining a sample of 92 Chinese firms listed in Hong Kong and the relevant control samples of purely domestically listed Chinese...
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...32 Pricing of Liquidity Risk in Emerging Markets: Evidence from Greater China Kuntonrat Davivongs1 and Pantisa Pavabutr2 This paper used the liquidity adjusted capital asset pricing model of Acharya and Pedersen (2005) to examine the liquidity risk of stocks in two retail-based equity markets, China and Taiwan during the period of 1996-2008. We found that the proportion of liquidity risk overwhelms market risk, unlike the findings in US markets. As a pricing factor, the evidence indicated that systematic liquidity risk was more important than market risk in Taiwan. In China, crosssectional differences in individual firm liquidity explained differences in returns. JEL codes: G12, G15 Key Words: Asset Pricing, Liquidity Risk, Emerging Markets 1. Introduction The diversity of liquidity features and their importance in asset pricing have been an active area of research. The main conclusions drawn from existing works are that there exists commonality in liquidity (Chordia et al., 2000, Huberman and Halka, 2001, Hasbrouck and Seppi, 2001) and that investors demand premium from illiquidity (Amihud and Mendelson, 1986, Brennan and Subrahmanyam, 1996, Datar et al., 1998, Amihud, 2002). What is less understood is the relative importance of market risk to liquidity risk. In an attempt to shed light on this issue, Acharya and Pedersen (2005) used an equilibrium model as a framework to measure possible channels of liquidity risk. Although the authors found their ―Liquidity Adjusted...
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...University of Hong Kong Guanghua School of Management, Peking University Written by: HE Jia, Hugh THOMAS Researchers: HE Jia, Hugh THOMAS, ZHOU Chunsheng Research Assistants: WAN Yanyan, SU Jun, MAO Tianshi Part One: Background for Asian Banks’ Competitiveness Study I. Asian Banking Reform Reform has surged across the banking industry in Asia over the last decade. In the large, insular, developing economies of China and India, the reform movement originated with internationalizing and introducing market mechanisms to stimulate previously state-owned systems. In Japan and the other traditionally market oriented Asian economies, the reform was born out of crisis. Japan’s slow and painful, a decade-long recession of the 1990s, following the bursting of the bank-financed real estate and stock markets bubbles, finally led to a consensus on the need for reform. But real urgency did not enter banking reform in Asia until the Asian Financial Crisis struck the smaller, developing, market-based economies of Asia in 1997. In the run-up to the crisis, capital inflows helped fuel debt-financed investment, while stable exchange rates and surging economic growth masked the risks of many loans to leveraged and risky companies, often based more on connections than sound credit analysis. Many banks were profitable notwithstanding corruption, poor control and lax banking practices. In mid 1997, investor sentiment turned against the region, precipitating a drop in asset values...
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...Abstract This paper investigates if bankruptcy of Japanese listed companies can be predicted using data from 1992 to 2005. We find that the traditional measures, such as Altman’s (J Finance 23:589–609, 1968) Z-score, Ohlson’s (J Accounting Res 18:109–131, 1980) O-score and the option pricing theory-based distance-todefault, previously developed for the U.S. market, are also individually useful for the Japanese market. Moreover, the predictive power is substantially enhanced when these measures are combined. Based on the unique Japanese institutional features of main banks and business groups (known as Keiretsu), we construct a new measure that incorporates bank dependence and Keiretsu dependence. The new measure further improves the ability to predict bankruptcy of Japanese listed companies. Keywords Bankruptcy risk measure Á Accounting information Á Option pricing theory Á Japanese listed companies Á Bank dependence Á Keiretsu JEL Classifications G15 Á G33 1 Introduction When a company falls into bankruptcy, its stakeholders lose some or all the value they invested in the company. From an investor’s point of view, it is important to M. Xu (&) School of Accounting and Finance, The Hong Kong Polytechnic University, Kowloon, Hong Kong, China e-mail: afxuming@inet.polyu.edu.hk C. Zhang Department of Finance, The Hong Kong University of Science and Technology, Kowloon, Hong Kong, China 123 Bankruptcy prediction 535 assess a firm’s likelihood of bankruptcy so that the bankruptcy...
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...Emerging Markets Review 13 (2012) 516–547 Contents lists available at SciVerse ScienceDirect Emerging Markets Review journal homepage: www.elsevier.com/locate/emr Corporate governance, agency problems and international cross-listings: A defense of the bonding hypothesis☆ G. Andrew Karolyi ⁎ Johnson Graduate School of Management, Cornell University, 348 Sage Hall, Ithaca, NY 14853, USA a r t i c l e i n f o Article history: Received 30 June 2011 Received in revised form 6 August 2012 Accepted 7 August 2012 Available online 17 August 2012 JEL classification: F30 G15 G32 G38 Keywords: Cross-listing Stocks Bonding International financial markets a b s t r a c t Why firms from around the world seek to cross-list their shares on overseas exchanges has intrigued scholars during the past two decades. A general dissatisfaction with the conventional wisdom about investment barriers segmenting global investors and how cross-listings overcome those barriers cleared the way for newer wisdom about informational problems and agency conflicts, and how firms could overcome weaknesses in corporate governance by listing on, and thus “bonding” to, overseas markets with stronger regulatory oversight, stringent reporting and disclosure requirements and investor protections. Critics have challenged the viability of the bonding hypothesis, which I answer in this review. © 2012 Elsevier B.V. All rights reserved. 1. Introduction Cross-listing — also referred...
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...Introduction: Efficient Market Hypothesis (EMH) implies markets to be rational, incorporating new information to reflect in stock prices rapidly, considering direction and size of the share price movement. Consequently, leaving no opportunities for investors to beat the market and acquire abnormal returns. Predictable information raises the stock prices prior to its occurrence, and rapidly adjusting at the event date. Addendum to EMH, Random Walk Theory proposes market prices abide no pressure from past-price movements thus pursue a random course, making impossible to forecast future-price movements as they are an independent of past-prices. Fama (1970) establish three-level grading system portraying degree of market efficiency, based on investment approach endowing abnormal returns: Market anomalies are inconsistent with EMH and a consequence of deviations and incomprehensible patterns in smooth running of stock markets. Anomalies are statistically considerable and additionally proffer investors with risk adjusted economic returns. Once documented and scrutinized in literature, anomalies tend to disappear, overturn, or attenuate; doubting their subsistence in past, as being statistical irregularity, or have been arbitraged away. This essay will begin by defining limitations of CAPM and introduce three-factor model. Additionally, it will discuss the fundamental anomalies (Value and Size effects), calendar anomalies (January, Weekend and Time-of-the-month effects) and...
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...The Hongkong and Shanghai Banking Corporation Limited Annual Report and Accounts 2012 THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED Annual Report and Accounts 2012 Contents Financial Highlights ........................................................................................................................................... Report of the Directors ...................................................................................................................................... Financial Review ............................................................................................................................................... Statement of Directors’ Responsibilities ............................................................................................................ Auditor’s Report ................................................................................................................................................ Financial Statements .......................................................................................................................................... Consolidated income statement ......................................................................................................................... Consolidated statement of comprehensive income ............................................................................................ Consolidated balance sheet .......................................
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...GZI REIT of Hong Kong and CapitaRetail China Trust (CRCT) of Singapore – have securitised Chinese property assets. The purpose of this paper is to examine the driving forces and the obstacles surrounding China REITs, and evaluate REIT securitisation as an exit strategy for Chinese properties. Design/methodology/approach – The paper analyses the performance of the two cross-border REITs and investigates whether REITs holding Chinese assets outperform other listed REITs. Research limitations/implications – CRCT outperforms GZI REIT as well as some of the other Singapore REITs, while GZI REIT ranked second lowest in terms of price performance when compared to other Hong Kong REITs. The limited history of CRCT suggests that when a well-structured REIT holding Chinese assets can perform very well. We also infer that performance is closely linked to portfolio composition and diversification, growth story and originator reputation. Originality/value – The study shows that there is indeed a strong local demand for China REITs, and that REITs can provide an alternative source of real estate financing for Chinese developers and promote a better regulated Chinese real estate market. Keywords Real estate, Investments, Trusts, Securities, China Paper type Research paper Securitising China real estate 247 Received April 2007 Accepted July 2007 1. Introduction Asia has witnessed two major phenomena over the past decade. The first is the emergence of the China real estate market and the second...
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...Determinants Of Audit Fees: Empirical Evidence From Emerging Economy Kamal Naser* Hamed Abdullhameed** & Rana Nuseibeh*** Abstract This study investigates the structure of audit fees in an emerging economy, Jordan. Data were collected from a sample of companies listed on the Amman Stock Exchange that forms 90% of the total population and fairly presents all industrial sectors within the economy. Consistent with previous research, the results of the analysis revealed that corporate size, status of the audit firm, industry type, degree of corporate complexity and risk are the main determinants of audit fees in the Jordanian environment. Unlike previous studies, however, variables such as corporate profitability, corporate accounting year-end and time lag between year-end and the audit report date appeared to be insignificant determinants of audit fees in the sampled companies. Key Words: * Audit fees, Emerging Economy, Jordan. S S cientific Journal of Administrative Development Vol.5 I.A.D. 2007 Dean College of Business Administration, Al-Ain University of Science and Technology, UAE. ** Freelance Financial Analyst, Jordan. *** Link Officer, National Health Service (NHS), UK. 84 Determinants Of Audit Fees: Empirical Evidence From Emerging Economy Introduction Although a number of studies have provided empirical evidence on the relationship between audit fees and the attributes of audited companies, most have tended to focus on developed economies...
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...Position in its industry & Main competitors 2. Answer the Questions presented at the end of the 1st session and reviewed and answered in the second session. * How have FedEx and UPS performed financially? How do we measure its financial performance? Financial performance measures that can be obtained from a firm’s financial statements consist of absolute data and financial ratios. Absolute measures such as income, net assets and equity, reveal trends and allow a company to be compared to its performance over time, while financial ratios, including return-on-assets and current ratio, adjust for scale and allow for comparisons of different-sized companies. Financial ratios are ideal to compare FedEx and UPS, since UPS has $13.5 billion more in assets and $11 billion more in revenues than FedEx. Please see Table 2 for a comparison of the most common and widely used financial ratios. UPS is outperforming FedEx in liquidity, solvency and profitability measures, while lagging in activity and growth. This would indicate that UPS has superior financial performance, but the disadvantage of using financial statement information is the use of book values, not market values, which are historic. As a result, the information is not as relevant, and inferences are backward, not forward-looking. More relevant measures, such...
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...International Business— Subba Rao 3.0.2 Strategic management 100 Marks Course Content 1. Strategic Management Process: Vision. Mission, Goal Philosophy. Policies of an Organization. 2. Strategy, Strategy as planned action, Its importance, Process and advantages of planning Strategic v/s Operational Planning. 3. Decision making and problem solving. Categories of problems, Problem solving skill, Group decision making. Phases indecision making, 4. Communication Commitment and performance, Role of the leader, Manager v/s Leaders Leadership styles 5. Conventional Strategic Management v[s Unconventional Strategic Management. The Differences, Changed Circumstance. 6. Growth Acce orators: Business Web, Market Power, learning based. 7. Management Control, Elements, Components of Management Information Sysstems 8. Mokena’s 7 8 Models : Strategy, style, structure, systems, staff, skill and Shared values 9. Group Project Reference Text 1. Strategic Management — Thompson & Striekland McGraw Hill 2. Competitive advantage – Michael...
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...Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning • Car Care • Personal Care • Cosmetics & Fragrances • Kitchen and Cookware • Bodyshaping Lingerie • Undergarments and Apparel • Food and Beverages • Π Water Systems • Health and Nutrition • Household Cleaning...
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...INTERNATIONAL LIMITED STOCK CODE: 1361 Ready to Run Annual Report 2013 40 02 Company Information 06 Chairman’s Statement Report of the Directors 50 Corporate Governance Report 03 Results Highlights for 2013 10 Management Discussion and Analysis Contents 04 Financial Summary Directors and Senior Management Independent Auditor’s Report 59 64 Consolidated Statement of Profit or Loss Consolidated Statement of Financial Position Statement of Financial Position 66 Consolidated Cash Flow Statement Notes to the Financial Statements 70 62 Consolidated Statement of Profit or Loss and Other Comprehensive Income 65 68 72 69 Consolidated Statement of Changes in Equity 361 DEGREES INTERNATIONAL LIMITED Company Information BOARD OF DIRECTORS Executive Directors Ding Wuhao Ding Huihuang Ding Huirong Wang Jiabi COMPANY SECRETARY Choi Mun Duen HKICPA FCCA, CAYMAN ISLANDS SHARE REGISTRAR AND TRANSFER OFFICE Royal Bank of Canada Trust Company (Cayman) Limited 4th Floor, Royal Bank House 24 Shedden Road, George Town Grand Cayman KY1-1110 Cayman Islands (Chairman) AUTHORISED REPRESENTATIVES Ding Wuhao Choi Mun Duen Independent Non-executive Directors Yan Man Sing Frankie Sun Xianhong Liu Jianxing (Resigned and effective from 2 September 2013) Tsui Yung Kwok REGISTERED OFFICE Cricket Square, Hutchins Drive PO Box 2681 Grand Cayman, KY1-1111 Cayman Islands HONG KONG SHARE REGISTRAR Computershare...
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...Ａ股；甲类股份 abatement of tax 减税；减扣免税额 ABN AMRO Bank N.V. 荷兰银行 above-the-line expenditure 线上项目支出；经常预算 支出 above-the-line receipt 线上项目收入；经常预算收入 ABSA Asia Limited 南非联合亚洲有限公司 absolute change 绝对数值变更 absolute expenditure 实际开支 absolute guideline figure 绝对准则数字 absolute interest 绝对权益 absolute order of discharge 绝对破产解除令 absolute profit margin 绝对利润幅度 absolute value 实值；绝对值 absolutely vested interest 绝对既得权益 absorbed cost 已吸收成本；已分摊成本 absorption 吸收；分摊；合并 absorption rate 吸收率；摊配率；分摊率 ACB Finance Limited 亚洲商业财务有限公司 acceptable form of reciprocity 合理的互惠条件 acceptable rate 适当利率；适当汇率 acceptance agreement 承兑协议 acceptance for honour 参加承兑 acceptor 承兑人；接受人；受票人 acceptor for honour 参加承兑人 accident insurance 意外保险 Accident Insurance Association of Hong Kong 香港 意外保险公会 accident insurance scheme 意外保险计划 accident year basis 意外年度基准 accommodation 通融；贷款 accommodation bill 通融票据；空头票据 accommodation party 汇票代发人 account balance 帐户余额；帐户结余 account book 帐簿 account collected in advance 预收款项 account current book 往来帐簿 account of after-acquired property 事后取得的财产 报告 account of defaulter 拖欠帐目 account payable 应付帐款 account payee only [A/C payee only] 只可转帐；存入 收款人帐户 account receivable 应收帐款 account receivable report 应收帐款报表 account statement 结单；帐单；会计财务报表 account title 帐户名称；会计科目 accountant's report 会计师报告 Accountant's Report Rules 会计师报告规则 accounting and auditing procedure 会计与审计程序； 会计与核数程序 Accounting Arrangements 《会计安排》 accounting basis 会计基础 accounting by Official Receiver 破产管理署署长呈 交的帐目 Accounting...
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...Fine Wine Market Outlook 2012 Contents Introduction Methodology The Fine Wine Market in 2012: Challenges and opportunities Survey findings 5 6 7 10 PROFESSIONALS’ WINE NETWORKING Connecting professionals with a shared interest in wine In your city, and around the world With colleagues in the sectors that matter to you Few things form stronger bonds between people than a shared passion for wine. Whether you’re an experienced wine collector or just embarking on wine discovery, we can help power your networking by connecting you with like-minded professionals, in the elds you tell us are relevant to your business and career. The service is free, private, and condential. Simply register your interest at www.wineyields.com, and we’ll contact you privately to set up introductions with complimentary professionals who’d like to share a glass or two. A free reader service, from Wine Yields F INE WINE INVESTMENT SPECIALISTS Best prices for fine wine We have an excellent reputation as advisors on investment grade wines; we trade in them on a daily basis and so are well placed to recommend what and when to buy and sell. We supply the trade and private collectors at the same highly competitive prices. We charge no management or performance fees. • Top prices paid for your wine • Highly regarded fine wine blog • Professional storage available Pantone PMS 273 • Daily fine wine news and extensive news library Pantone 273 Cmyk Suite 5, Claremont House, 22 Claremont...
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