...Paper Title: Trading favors within Chinese groups Discussant: Federica Capriglione Abstract Pyramidal structures is a dominant aspect of ownership in the developing world, which allow shareholders to control corporations with relatively low investments. On the one hand, the mismatch of cash flow and control rights leads to a range of agency problems and resultant resource misallocations, potentially impacting the macro economy. On the other, pyramids are one important mechanism that enables the formation of diversified business groups that are a dominant feature of business organization in much of the world. The paper aims to give an illustration of this within-firm trade-off of costs and benefits in the context of publicly traded firms in China. Moreover, capital investment and firm performance are investigated from the perspective of pyramidal ownership structure. In the last part of paper it is examined why when a listed firm gets into financial trouble and is designated as special treatment (ST) firm by the regulatory authorities, could have generated overwhelmingly favorable market reactions. That will be considered from the perspective of “tunnelling” and “propping up” practice within Chinese listed firms. 1. Introduction A dominant aspect of ownership in the developing world is pyramidal structures, which allow shareholders to control corporations with relatively low investments. The uneasy relationship between these controlling investors and minority shareholders, and...
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...diKalim Hyder & Qazi Masood Ahmed 107 Why Private Investment In Pakistan Has Collapsed And How It Can Be Restored Kalim Hyder and Qazi Masood Ahmed* Abstract The purpose of this paper is to analyse the decline in private investment and formulate a comprehensive strategy to overcome this problem, which is the main cause of deceleration in the growth momentum of Pakistan’s economy. Due to lack of investor confidence, private investment has reached its lowest point in the recent economic history of the private sector led growth phase (1978 to 2002) in Pakistan. This paper argues that economic as well as non-economic factors are responsible for this declining investment. Economic policies are formulated in such a manner that the short-term objectives of lowering the fiscal and trade deficits were to some extent achieved but overall economic performance and investment were ignored. In order to control external trade deficits, a policy of devaluation increased the cost of production through an increase in prices of imported raw material especially of plant and machinery. Higher real interest rates due to excessive public borrowing that were due to the failure in reducing fiscal deficits has resulted in financial crowding out and has corroded the savings that might be used to finance private investment. The unexplained part of private investment that is not determined by economic factors can be attributed to non-economic factors, which include internal and external shocks. These...
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...EXECUTIVE SUMMARY The importance of investment management in financial markets has sky-rocketed over the past two decades worldwide. As of September 2008, more than 69,000 mutual funds existed worldwide, which corresponds to $19 trillion of total net assets under management. As a result of this trend, performance of portfolio managers has become an increasingly important issue among financial analysts in order to determine whether professional managers add value to the portfolios they manage or merely create excessive transaction costs through active management. Stock selection and market timing are the two basic abilities that drive manager performance. The focus of this report is on market timing as it examines if an investment strategy that changes allocations in response to economic conditions is better than a traditional buy and hold strategy. The analysis utilizes daily return data covering the period from January 1990 to March 2010 with the test portfolio consisting of two risky assets (the total return on the S&P500 and NASDAQ) and a risk-free asset (the return on the 10-year government bond). The predictive instruments include changes in the level and shape of the term structure of interest rates and the market’s implied volatility, given current short-term rates as suggested by the level of 1-year government bond rates. A one-factor regression model is employed to test the hypothesis; the factor being the excess return of the portfolio on the market – a measure...
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...Journal of Banking & Finance 35 (2011) 2217–2230 Journal of Banking & Finance journal homepage: www.elsevier.com/locate/jbf Liquidity and asset pricing: Evidence from the Hong Kong stock market Keith S.K. Lam ⇑, Lewis H.K. Tam Department of Finance and Business Economics, Faculty of Business Administration, University of Macau, Av. Padre Tomas Pereira, S.J. Taipa, Macao, China a r t i c l e i n f o a b s t r a c t This study investigates the role of liquidity in pricing stock returns in the Hong Kong stock market. Our results show that liquidity is an important factor for pricing returns in Hong Kong after taking well-documented asset pricing factors into consideration. The results are robust to adding portfolio residuals and higher moment factor in the factor models. The results are also robust to seasonality, and conditional-market tests. We also compare alternative factor models and find that the liquidity four-factor model (market excess return, size, book-to-market ratio, and liquidity) is the best model to explain stock returns in the Hong Kong stock market, while the momentum factor is not found to be priced. Ó 2011 Elsevier B.V. All rights reserved. Article history: Received 10 June 2010 Accepted 17 January 2011 Available online 22 January 2011 JEL classification: G12 G15 Keywords: Liquidity Asset pricing Hong Kong stock market Factor model Fama French three factors Higher moment Momentum 1. Introduction Investors face liquidity risk when they transfer...
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...Lecture Notes in Finance 1 (MiQE/F, MSc course at UNISG) Paul Söderlind1 14 December 2011 1 University of St. Gallen. Address: s/bf-HSG, Rosenbergstrasse 52, CH-9000 St. Gallen, Switzerland. E-mail: Paul.Soderlind@unisg.ch. Document name: Fin1MiQEFAll.TeX Contents 1 Mean-Variance Frontier 1.1 Portfolio Return: Mean, Variance, and the Effect of Diversification 1.2 Mean-Variance Frontier of Risky Assets . . . . . . . . . . . . . . 1.3 Mean-Variance Frontier of Riskfree and Risky Assets . . . . . . . 1.4 Examples of Portfolio Weights from MV Calculations . . . . . . . . . . . . . . . 4 4 9 19 22 A A Primer in Matrix Algebra 24 B A Primer in Optimization 27 2 . . . . . . . . 31 31 32 37 39 42 45 46 47 3 Risk Measures 3.1 Symmetric Dispersion Measures . . . . . . . . . . . . . . . . . . . . 3.2 Downside Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Empirical Return Distributions . . . . . . . . . . . . . . . . . . . . . 54 54 56 67 4 CAPM 4.1 Portfolio Choice with Mean-Variance Utility . . . . . . . . . . . . . . 70 70 Index Models 2.1 The Inputs to a MV Analysis . 2.2 Single-Index Models . . . . . 2.3 Estimating Beta . . . . . . . . 2.4 Multi-Index Models . . . . . . 2.5 Principal Component Analysis 2.6 Estimating Expected Returns . 2.7 Estimation on Subsamples . . 2.8 Robust Estimation . . . . . . . . . . . . . . . .. .. .. . ...
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...Crimson Shadow Laura Jones English 102-92 12 June 2010 Loving the Untamed Artist Norman Maclean was a well-established English professor at the University of Chicago for many years before writing an account of his life in the western Rocky Mountains during the early 1900’s titled A River Runs Through It. Maclean focuses much of this account on the experiences of his brother, Paul, and himself. These experiences further centralize around the brothers’ primitive pastime, fly fishing. The plot twists through childhood memories and growing pains to unveil his life’s disappointments, risks, and losses. A few habitual values surface from within these pages. Through the relationship of two brothers, Norman Maclean’s A River Runs Through It depicts the values of unconditional love, self-control, and appreciation for art. Expressed with acute emotional detail, A River Runs Through It combines positive and negative experiences to give a clear meaning to unconditional love. Maclean does not waste many pages before giving himself a conscientious loving-brother image. The first negative circumstance which would hinder Norman’s perception of his younger brother, Paul, occurs early in the story. Norman reacts to this situation by “[standing] still until [he can] again see the woman in bib overalls marveling at his shadow casting” (Maclean 37). He thinks back to a positive memory of his brother before approaching his holding cell to take him home. Norman reinforces his character with honesty...
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...Revenue Cycle (Ch11 Hurt) 92% of Public Companies’ Revenue Processes at Risk for Compliance Failures and Restatements New study by RevenueRecognition.com and IDC reveals widespread reliance on spreadsheets, which greatly increases the likelihood of control weakness and accounting errors. A recent survey of 685 senior financial executives from a broad range of companies, revealed that revenue recognition and reporting activities are not automated within Financial/ERP systems. As a result, 92% of public companies are forced to rely on spreadsheets to fill vital gaps in their revenue reporting processes—despite the fact that spreadsheets are prone to errors, lack audit capabilities, and resist internal controls. This, and other findings, is from a new report by www.RevenueRecognition.com and IDC, “Enterprise Systems and Revenue Recognition: The Missing Link”. Revenue Spreadsheets: The Compliance Killers These results should be alarming for corporate finance departments, executives, and investors alike, because: 1. The risks introduced by spreadsheets violate basic compliance principles. 2. Revenue accounting problems are the leading cause of financial restatements. 3. The number of restatements is on the rise. As a result, compliance managers should be addressing the issue of having spreadsheets in the revenue reporting process. Executives should be extremely cautious about the integrity of the numbers they are attesting to under Sarbanes-Oxley requirements...
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...Resilient Packet Ring Technology 1 CHAPTER 1 INTRODUCTION 1.1 Background: The nature of the public network has changed. Demand for Internet Protocol (IP) data is growing at a compound annual rate of between 100% and 800%1, while voice demand remains stable. What was once a predominantly circuit switched network handling mainly circuit switched voice traffic has become a circuit-switched network handling mainly IP data. Because the nature of the traffic is not well matched to the underlying technology, this network is proving very costly to scale. User spending has not increased proportionally to the rate of bandwidth increase, and carrier revenue growth is stuck at the lower end of 10% to 20% per year. The result is that carriers are building themselves out of business. Over the last 10 years, as data traffic has grown both in importance and volume, technologies such as frame relay, ATM, and Point-to-Point Protocol (PPP) have been developed to force fit data onto the circuit network. While these protocols provided virtual connections-a useful approach for many services-they have proven too inefficient, costly and complex to scale to the levels necessary to satisfy the insatiable demand for data services. More recently, Gigabit Ethernet (GigE) has been adopted by many network service providers as a way to network user data without the burden of SONET/SDH and ATM. GigE has shortcomings when applied in carrier networks were recognized and for these problems, a technology...
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...harbour city of Gladstone, and the Calliope and Miriam Vale shires. The airport is currently operated by the Gladstone Regional Council following recent council amalgamations and dissolution of the Gladstone-Calliope Aerodrome Board on 14 March 2008. The airport caters primarily for business travellers and freight activities associated with the region’s developed and emerging industrial complexes. Regular public transport (RPT) services are currently provided by QantasLink utilising primarily Dash 8 Series Q400 aircraft. Continuing growth can be expected with over $14 billion worth of projects committed and/or planned in the next 5 years and with large scale stocks of land set aside for longer term expansion in the Gladstone State Development Area. Since 1998 airport expansion has been guided by a Development Plan which the Aerodrome Board updated in 2004 to take particular account of current and likely future aircraft types and stronger growth in passenger numbers than previously forecast. The forecasts prepared for the 2004 plan envisaged that the majority of RPT services would be provided in the short term by the Dash 8-300 aircraft and in the medium to long term by regular scheduled services by 70 seat aircraft such as the Q400. However, passenger numbers have grown even more rapidly over the last three years than the high 4.53% growth forecast adopted in the 2004 plan and, for the 2006-07 Financial Year stood at almost 190,000 rather than the predicted 165,000. Passenger numbers...
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...Baker University School of Professional & Graduate Studies MLA Style Guide 8001 College Blvd, Suite 100, Overland Park, KS 66210 913.491.4432 March 2010 Getting Started Introduction • Grab his or her attention in the first paragraph. Thesis • Your paper “proves” a thesis, a one or two sentence statement of your central idea. The thesis is usually placed at the end of the first paragraph, immediately after you introduce the topic. Although the thesis appears early in the paper, it is usually written late in the writing process, after you form your ideas and gather your supporting evidence. • Body • The body of your paper contains the evidence (specific examples and application) to support your thesis. • State viewpoints that oppose yours as effectively as you state your own. Remember HEAP--Honest Evaluation of Alternate Positions. Conclusion • The conclusion is the last chance the writer has to connect with the reader. A conclusion summarizes the paper’s main points with a sense of closure and completeness. • Summarize and/or conclude your paper in a way that helps the reader evaluate whether or not you did what you said you would do. Do not introduce any new material. Include a “killer” statement in the conclusion that leaves no doubt in the reader’s mind that you prove your thesis. Summarize the main ideas of the specific thesis and apply the main ideas of the body to the “bigger picture.” Help the reader by demonstrating to her...
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...which in many cases is a healthy amount compared to other working citizens. Do these athletes receive too much money for what they do? Are they worth the millions of dollars they make for playing sports? There are many different arguments for these questions, but one question that should be asked is, how many of these professional athletes skipped out on going to college for a few years to better their education, just to make the big bucks? Some would say they can go back to school if they choose to leave early or in the early 2000s not attend college at all, and go straight to the professional leagues, but if given the opportunity to make millions of dollars and have all the luxuries they can get their hands on, what is the point of wasting time that they can be partying and having a marvelous life, and decide to take college class instead? Is there a way to entice the youth that going to college instead of going to be a professional athlete is actually worth it, yes! The proposed plan was for colleges to pay up to five thousand dollars a year for student athletes to play their respective sport (Strauss). Young adults today are faced with a lot of decisions in their young adult life. For athletes, there are even bigger decisions to make such as, where should he or she attend college? How long...
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...International Journal of Energy Economics and Policy Vol. 3, No. 1, 2013, pp.51-59 ISSN: 2146-4553 www.econjournals.com An Investigation of Some Hedging Strategies for Crude Oil Market Andre Assis de Salles Industrial Engineering Department Polytechnic School, Federal University of Rio de Janeiro, Rio de Janeiro, Brazil. Email: as@ufrj.br ABSTRACT: This paper examines the performance of bivariate volatility models for the crude oil spot and future returns of the WTI type barrel prices. Besides the volatility of spot and future crude oil barrel returns time series, the hedge ratio strategy is examined through the hedge effectiveness. Thus this study shows hedge strategies built using methodologies applied in the variance modelling of returns of crude oil prices in the spot and future markets, and covariance between these two market returns, which correspond to the inputs of the hedge strategy shown in this work. From the studied models the bivariate GARCH in a Diagonal VECH and BEKK representations was chosen, using three different models for the mean: a bivariate autoregressive, a vector autoregressive and a vector error correction. The methodologies used here take into consideration the denial of assumptions of homoscedasticity and normality for the return distributions making them more realistic. Keywords: Volatility Models; Future Markets; Hedge Ratio; Hedge Effectiveness; Crude Oil Market JEL Classifications: C32; G15; Q40 1. Introduction All countries consume crude...
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...What is a research paper? The research paper is a presentation in a well organized discussion of the opinions, conclusions or information derived from extensive study and investigation of the work of others. Other Names 1. Term paper – refers to a project that summarizes or demonstrates mastery of the work of a term or semester 2. Report – refers to a thorough records or description of the results of first hand experiences or reading in primary sources 3. Thesis – commonly refers to a substantial research project for the master’s or undergraduate paper 4. Dissertation – research paper submitted by a candidate for the doctoral degree 5. Reading paper 6. Library paper Purposes of research paper 1. To learn to use the library efficiently 2. To develop habits of purposeful reading and note taking 3. To learn to organize the information taken from various sources and develop into a unified composition Steps in research writing 1. Step one- select your subject area – must be guided by your interest and curiosity; check on different sources – reference books, card catalog, periodical indexes, and electronic sources like the internet 2. Step two – make your working bibliography Bibliography – formal list of books, articles and other sources from which the materials of your paper are drawn. Proper bibliographic forms Book by one author Padilla, Cabrina (2015) Enriching Oral Communication Skills. Quezon City: Abiva Publishing...
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...PeopleSoft 9 and 9.1 Payroll Tax Update 15-D October 2015 PeopleSoft 9 and 9.1 Payroll Tax Update 15-D Year End Processing 2015: U.S., Puerto Rico, and U. S. Territories This document provides the information you need for using PeopleSoft Payroll for North America to complete 2015 year-end payroll processing. Please feel free to contact the Oracle Global Customer Support for help with any questions you may have on the year-end programs. The telephone number is 1.800.223.1711. The pages shown in this document are from Release 9.1. Although the corresponding Release 9 pages differ in their style of design and appearance, the navigation path and content of each page in Release 9 is identical to the Release 9.1 page illustrations shown in this document. Electronic Self Service Forms W-2 and W-2c in PeopleSoft 9 and 9.1 PeopleSoft Payroll for North America (Releases 9 and 9.1) delivers functionality to enable Payroll for North America and ePay employers to use XML Publisher (XMLP) to produce Forms W-2 and W-2c in PDF format for U.S. and U.S. Territory employees. (Note: XML Publisher is also referred to as BI Publisher.) This functionality creates online as well as paper forms in PDF format, and provides employees with access to an electronic version of their W-2 and W-2c forms through Self Service. The system creates and stores data in XML format and builds the PDF file for display on demand using XMLP templates. Employees are then able to view or print the W-2...
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...Infor ERP LN Development Tools 8.6 Developer's Guide © Copyright 2009 Infor All rights reserved. The word and design marks set forth herein are trademarks and/or registered trademarks of Infor and/or its affiliates and subsidiaries. All rights reserved. All other trademarks listed herein are the property of their respective owners. Important Notices The material contained in this publication (including any supplementary information) constitutes and contains confidential and proprietary information of Infor. By gaining access to the attached, you acknowledge and agree that the material (including any modification, translation or adaptation of the material) and all copyright, trade secrets and all other right, title and interest therein, are the sole property of Infor and that you shall not gain right, title or interest in the material (including any modification, translation or adaptation of the material) by virtue of your review thereof other than the non-exclusive right to use the material solely in connection with and the furtherance of your license and use of software made available to your company from Infor pursuant to a separate agreement (“Purpose”). In addition, by accessing the enclosed material, you acknowledge and agree that you are required to maintain such material in strict confidence and that your use of such material is limited to the Purpose described above. Although Infor has taken due care to ensure that the material included in this publication...
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