Business Commons^™

Digital Certificates : Success Or Failure?, Wai Sing, Alfred Loo

Hong Kong Institute of Business Studies Working Paper Series

This paper examines a controversial topic – “Is digital certificate technology a success or failure?” The arguments and facts from both sides are presented in this paper. A high profile failure case in Hong Kong is discussed. Some problems of Certificate Authorities are presented. This paper differs from other security papers in that technical terms (such as algorithms, details of data frames, etc.) are minimized as far as possible.

The Roles Of Product Type And Product Newness In Consumer Value Co-Creation For Luxury Brands, Qi Lu

Theses & Dissertations

The study examines the effect of consumer co-creation in different new product development stages on consumer loyalty, purchase intention and word-of-mouth. It also examines (a) the mediating role of consumer perceived value, (b) the moderating effect of product type (search goods vs. experience goods) and (c) the influence of product newness (high-level vs. low-level) on the moderating effect of product type. Two scenario-based experiments on real luxury buyers in China were conducted to test the proposed hypotheses.

The findings show that co-creation at the early (vs. late) stage have a greater positive impact on consumer loyalty, purchase intention and word-of-mouth. …

Informed Institutional Shareholding : Evidence From Political Promotion, Chi Zhang

Theses & Dissertations

Are institutional investors informed to the political promotion events? This paper examines the informed trading of institutional investors in the context of political promotion. Institutional investors have superior information environment compared to retail investors. It can establish private information channel with firm management, financial analysts, regulatory bodies and other types of institutions. Since contemporary economic activities are more or less influenced by politics, promotion of important officials can bring favorable local economic development opportunities to companies. If institutional investors are informed to the political promotion events, they are supposed to react in advance of the occurrence of promotion events. We …

Geographic Distance And The Impact Of Investor Sentiment On Stock Prices, Yan Yang

Theses & Dissertations

Based on China’s stock market, this study investigates how firms’ geographic distance from a financial center affects the sensitivity of stock prices to investor sentiment. I find that firms located closer to a financial center are more affected by investor sentiment than firms located far from a financial center. This distance effect holds for different geographic cutting boundaries and after excluding firms located in financial centers. Besides, using China’s High Speed Railway (HSR) as an exogenous shock, I find that HSR connection significantly decreases the effect of geographic distance on the sentiment-driven stock price relationship. In addition, firms with shorter …

Managing Sales And Product Returns Under The Word-Of-Mouth Effect : Pricing, Quality, And Restocking Fee Decisions, Sun Yuen Hui

Theses & Dissertations

This paper considers a two-echelon supply chain involving a manufacturer and a retailer who make their pricing, quality, and restocking fee decisions under the word-of-mouth (WOM) effect. To investigate the decision-making problem for the sales and product returns, we construct a leader-follower game model in which the manufacturer first determines his quality effort and the wholesale price and the retailer then decides on her retail price and the restocking fee. Our results show that the wholesale and retail prices under no WOM effect are smaller than those when the WOM effect exists; and, as the WOM has a higher impact …

Insurance And Self-Protection For Increased Risk Aversion, Jian Zhang

Theses & Dissertations

We re-examine the classic problem of risk aversion and self-protection in this paper. In the beginning of this paper, we conduct comparative statics of risk aversion and prevention efforts based on the mono-periodic two states model of choice under risk. We show this new condition is effective with self-insurance-cum-protection model (Lee, 1998), in which the decision maker's activities to prevent the risk can sever both as self-insurance and self-protection. We suggest a new condition that increased risk aversion induces more prevention activities. This new condition requires only one assumption concerning fear of ruin coefficient, marginal effect of SICP activity on …

Auditor Changes And Debt Financing : Evidence From China, Suet Ying Chan

Theses & Dissertations

The role of independent auditors is to ensure the accuracy and the credibility of the financial statements. Independent auditors help in reducing agency costs and serve as a monitoring function for creditors. A change in an auditor–client relationship may provide useful information to creditors. Creditors may consider the signal of auditor changes, which affects information risks, as a factor in determining the terms of debts. After several major audit scandals, awareness of the importance of audit quality has increased. Audit partner changes and audit firm changes have been implemented in some jurisdictions to enhance the audit quality. Since China requires …

A Simulation Experimental Study On The Utility Of Pay Changes, Liu Ye

Theses & Dissertations

In this thesis, we conduct an experimental simulation of 131 students from a university in Hong Kong and investigate the relationship between pay changes and the perceived values (i.e., utility). Applying traditional psychophysical methods, we measure the utility of pay changes (i.e., pay raises and pay cuts) of different sizes by individual responses (i.e., happiness/unhappiness). Drawing on utility theory and expectancy theory, we examine the function that best fits this relationship by considering common function forms including linear, quadratic, logarithmic, and power functions. Using regression techniques, we find that a quadratic function best fits the data, and the utility function …

The Mediating Role Of Representational Predicaments : Between Autocratic Leadership And Subordinates’ Workplace Behaviors, Nan Wang

Theses & Dissertations

A representational predicament for an employee is a negative experience in which that employee believes that a key authority, such as his/her supervisor, has unfavorable perceptions about himself/herself caused by misconception, bias, or ignorance. That implies he/she is experiencing injustice at the workplace. Drawing for underlying explanations on the theories of interactional justice and equity, this study examines, through quantitative and qualitative methods, how autocratic leadership influences subordinates’ representational predicaments and in turn adversely affects subordinates’ behaviors in the workplace. The model developed in this thesis proposes that a subordinate is likely to have a stronger experience of representational predicaments …

The Role Of Islamic Finance In Economic Development, Nora Khan

Lingnan Journal of Banking, Finance and Economics

Islamic financial institutions have been growing rapidly in the past few years. Islamic finance refers to investments that are permissible in accordance with Sharia, the Islamic law. Sharia law views money as a measuring tool for value and not an “asset” itself. “It does not permit receipt and payment of riba(interest), gharar(excessive uncertainty), maysir(gambling), short sales or financing activities that it considers harmful to society” (IMF website). Interest, a form of income from money, is therefore prohibited. For example, the income obtained from banks must come from the gain or loss of the enterprises they underwrite and not from interest …

Fdi And Manufacturing Industry In Asia, Luyi Jin

Lingnan Journal of Banking, Finance and Economics

The study finds that China’s manufacturing still maintained a growth level from 2003 to 2013. However, the growth has been declining. The rapid development of ASEAN economies led to the rise of the emerging manufacturing countries which have slowly adjusted and found their own advantages in challenging China.

The main conclusions of this paper are twofold. First, China will soon lose her low labor cost competitive advantage and needs to look for new strategy or industrial upgrades. Second, the current pattern of international division of labor will last for a fairly long period that developing countries will continue to serve …

Portfolio Recallocation And Exchange Rate Dynamics, King Chun Wong

Lingnan Journal of Banking, Finance and Economics

This empirical paper aims to review a previous literature entitles “Portfolio Reallocation and Exchange Rate Dynamics”. The literature stated that including financial market structure can provide a micro-foundation to complement other macro-based models for exchange rate dynamics which typically are meaningful for the medium and long terms but not satisfactory for the short run. The model in the literature offers another way to look at exchange rate dynamics that is significant in the short run and more practical in nature. Undoubtedly, many investors in the financial market, such as traders, dealers, fund managers, and speculators who adjust their portfolio components …

How Do Cdos And Cdss Influence The Crisis Of 2008, Martin Buffet

Lingnan Journal of Banking, Finance and Economics

Everybody has heard about the “subprime” crisis but do we really know how it occurred and why this phenomenon had such an impact on our economies. One aspect of the answer to this question lies in the trade of credit default swaps (CDSs). These financial products led to less transparency in the markets and to a very collectively vulnerable financial system. This created a vicious circle that had not been anticipated by our financial regulators. In this paper, we will discuss how it occurred and what could have been done to avoid, or at lease reduce, the impact of these …

The Study Of Enhanced Performance Measurement Of Mutual Funds In Asia Pacific Market, Juzhen Li

Lingnan Journal of Banking, Finance and Economics

This empirical paper will compare the result by running Costa and Jakob's models (2010) using mutual funds in Asia Pacific market excluding Japan. Costa and Jakob's paper, Enhanced Performance Measurement of Mutual Funds: Running the Benchmark Index through the Hurdles, is highly related to this empirical paper and is generally based on Carhart's four-factor model (Carhart, 1997) with US securities market data. Apart from the comparison between Asia Pacific market excluding Japan and US market, further research on auxiliary and heteroscedasticity will also be conducted.

08_金融之都, 賽馬會香港歷史學習計劃

專題展覽

香港經歷了百多年的發展，成為了今天享譽世界的國際金融中心。現時金融服務業是本港經濟的重要支柱，銀行業、保險業、股票市場的發展已極具規模，更獲得世界的肯定。香港是亞洲第三大的國際銀行中心，更是亞洲區內保險機構最集中的地方。股票市場方面，香港是全球第八大證券市場，共有約1900家公司在香港交易所上市。另外，自1983年起，香港政府致力奉行聯繫匯率制度，以維持貨幣的穩定供應。