Eunhwa Yang, Yong-Cheol Lee and Qi Li
This paper aims to primarily analyzing the state and pattern of current energy benchmarking progress on commercial buildings since the New York City’s energy disclosure law, Local…
Abstract
Purpose
This paper aims to primarily analyzing the state and pattern of current energy benchmarking progress on commercial buildings since the New York City’s energy disclosure law, Local Law 84: Benchmarking has been implemented. It then compares the yearly benchmarking progress of Leadership in Energy and Environmental Design (LEED)-certified and non-LEED-certified buildings as well as ENERGY STAR-certified and non-ENERGY STAR-certified.
Design/methodology/approach
For thorough analytics, the authors combined and examined four sources of data: New York City Local Law 84: Benchmarking, Primary Land Use Tax Lot Output, US Green Building Council and US Environmental Protection Agency. The data sets were combined using two primary keys: the Borough, Block, Lot (BBL) number and the building address. Four years of energy use intensity values were obtained and normalized by shrinking the range of deviance in weather.
Findings
The findings indicate a significant improvement in the benchmarking progress when controlling building size, building type, year of construction or the most recent renovation and the presence of renovation. Interestingly, there is no significant difference in the energy benchmarking progress between LEED- and non-LEED-certified buildings. Possible reasons are explored and discussed.
Originality/value
From a methodological perspective, the study benefited from data disclosure as well as open data sources and used secondary data with a relatively large sample size. Many studies in the construction industry are based on the case-study approach, which may affect generalizability and causality of research findings. This unique approach illustrates the potential of secondary data analysis in the industry.
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This study considers the case in which governments decide whether to support private commercial banks with a subsidy policy in order to encourage participation in the…
Abstract
This study considers the case in which governments decide whether to support private commercial banks with a subsidy policy in order to encourage participation in the international ship financing market. We examine two cases: (i) identical efficiency between domestic and foreign commercial banks; and (ii) different efficiencies between these banks. In the first case, the domestic government has the incentive to provide a subsidy strategy for domestic commercial banks to maximize social welfare, while the foreign government does not use the subsidy support. Furthermore, in the second case, foreign governments and commercial banks always prefer the subsidy strategy in order to maximize both social welfare and profits. However, the domestic government uses the subsidy strategy depending on the efficiency gap between the two banks. Our model suggests that governments need to support commercial banks with an appropriate subsidy strategy (direct or indirect) to promote participation in the market.
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Woo-Baik Lee and Min-Cheol Woo
Trading of KOSPI 200 futures on CME Globex platform, which was launched in November 2009, starts at 18:00 and closes at 05:00 in the next morning. This paper examines how price of…
Abstract
Trading of KOSPI 200 futures on CME Globex platform, which was launched in November 2009, starts at 18:00 and closes at 05:00 in the next morning. This paper examines how price of KOSPI200 Global futures is discovered during nighttime trading session by using tick data.
The overall results of this study can be summarized as follows; First, we find that the weighted price contribution (WPC) exhibits asymmetric ‘W’-shaped curve during session. This finding is interpreted as that information is consequently transmitted from Globex and NYSE with ‘U’-shaped curve of intradaily price discovery to KOSPI 200 Global futures. Meanwhile, the weighted volume contribution (WVC) also shows ‘W’-shaped curve but weighted price contribution per volume contribution (WPCV) indicates asymmetric ‘U’-shaped curve. This finding that a trade is more (less) informative when trading intensity is higher (lower) provides evidence of partially supporting the “Event Uncertainty Hypothesis” over “Hot Potato Hypothesis”. Second, the price change of closing to opening time significantly contributes to price change during the close-to-close time span. This result explains information during regular daytime trading of KOSPI200 futures is efficiently incorporated in opening price of nighttime session. Third, nighttime traders of KOSPI200 futures recognize volatility of US stock market as more valuable information than the price of futures on CME Globex.
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Sohyung Kim, Cheol Lee and Sung Wook Yoon
The purpose of this paper is to investigate how fair value reporting and increased managerial discretion under the new goodwill accounting affect the asymmetric timeliness of…
Abstract
Purpose
The purpose of this paper is to investigate how fair value reporting and increased managerial discretion under the new goodwill accounting affect the asymmetric timeliness of earnings;, i.e. accounting conservatism.
Design/methodology/approach
Various empirical models are applied to a sample of 11,034 firms. To capture a cross‐sectional variation in asymmetric timeliness of earnings, Kahn and Watts' C_Score is adopted.
Findings
It is found that financial reporting for firms with purchased goodwill has become more conservative after the enactment of the new standard. However, once an increase in conservatism that is not attributable to new goodwill accounting is controlled for, it is found that accounting earnings for firms with purchased goodwill become less conservative.
Research limitations/implications
The results should be interpreted with caution, because the effect of concurrent events other than the adoption of SFAS 142 on reported earnings is not perfectly controlled.
Practical implications
The results of this paper support Watts' assertion that new goodwill accounting impairs accounting earnings' ability to reflect the economic earnings in a timely manner, but these results should be interpreted with caution, as the main objective of goodwill accounting is not to improve accounting conservatism.
Originality/value
This paper makes a timely contribution to the debate of fair value accounting by focusing on the impact of SFAS 142 on the asymmetric timeliness of earnings. By employing all available firms with purchased goodwill balances rather than relying on firms that report impairment losses, our research design better captures the impact of SFAS 142 on financial reporting.
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This paper reviews the socioeconomic reform policies employed by the China’s party-state between the early 1980s and mid-2000s. Unlike conventional frameworks viewing the reform…
Abstract
This paper reviews the socioeconomic reform policies employed by the China’s party-state between the early 1980s and mid-2000s. Unlike conventional frameworks viewing the reform as an economic development project designed for “national interests” or “ruling elites” personal interests’, this paper interprets the reform as a political attempt of the state made in response to the crisis of dominance over the working class. In the face of the crisis of class dominance expressed as economic and political unrests related to low growth of labor productivity, the state managers of the post-Mao era embarked on the reform as a way of restoring the state’s ability to impose work upon the workers. As is well known, the reform was “market-oriented” with the state relinquishing some of the control over economic managements, and this paper sees it as the state’s strategy of reducing political risks arising from a highly politicized form of class confrontation. By making pressures upon producers look like a purely economic matter arising from private relations, that is, by depoliticizing exploitative social relations of production, the market-oriented reform helped the party-state effectively repress workers without a serious damage to political legitimacy. From this perspective, this paper examines the reform policies in management of labor, firms, and money, and how those policies contributed to the state’s ability to discipline class relations of production in China. This paper, however, does not conclude that the reform as a depoliticization strategy of class dominance was successful and nonproblematic. It is argued that beneath the success of the reform was a growing necessity of crisis; faced with re-burgeoning workers’ struggles, growing problems of overproduction/overaccumulation, and the resultant looming banking system crisis, the party-state came to find it more and more necessary to bring the economic managements back into political ambit with the related political risks also growing.
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B. Anthony Billings, Cheol Lee and Jaegul Lee
The chapter examines whether the lowering of dividend taxes as part of the US Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) resulted in an increase in dividend…
Abstract
The chapter examines whether the lowering of dividend taxes as part of the US Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) resulted in an increase in dividend payouts at the expense of research and development (R&D) spending. Using 1,206 US firm-years data, we find that R&D investments responded negatively to higher levels of dividend payout in the post-JGTRRA of 2003 tax regime compared with the pre-regime. We also find that R&D intensity and financial constraint moderate this negative relation. That is, this relation only holds for firms in low R&D-intensity industries and firms facing high levels of financial constraint. From a tax policy perspective, even though the tax cut on dividend receipts has the benefit of lowering the cost of equity capital, the benefit appears to have come at the expense of R&D investment.
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Abdullahi Babatunde Saka and Daniel W.M. Chan
This paper aims to review the status of development of building information modelling (BIM), its trends and themes across the six continents of the world.
Abstract
Purpose
This paper aims to review the status of development of building information modelling (BIM), its trends and themes across the six continents of the world.
Design/methodology/approach
A total of 914 journal articles sought from the search engine of Web of Science (WOS) based on the country/region option of the WOS to group them into continents. A best-fit approach was then applied in selecting the suitable software programmes for the scientometric analysis and comparisons and deductions were made.
Findings
The findings revealed that there are differences in the development of BIM across the six continents of the world. South America and Africa are lagging in the BIM research and Australia and Asia are growing, whilst Europe and North America are ahead. In addition, there exist differences in the research themes and trends in these continents as against the single view presented in extant studies.
Originality/value
This study introduced a new approach to carry out a comparative and taxonomic review and has provided both academic researchers and industrial practitioners with a clear status of development of BIM research and the trend across the six continents of the world.
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This paper, in face of the increasing interconnectivity between local and global, has attempted to retrospect the critical moment of Korean society under Tae‐woo Rho (1988–93…
Abstract
This paper, in face of the increasing interconnectivity between local and global, has attempted to retrospect the critical moment of Korean society under Tae‐woo Rho (1988–93) regime, in which Korea struggled for fundamental reforms of the earlier centrally controlled state system through economic rationalization and labor flexibilization. During that juncture of Korean history, neo‐liberalization under the influence of Fordian decline was a governing theme behind the Korean economy's policy formation as well as labor agenda. This reliance of government on the neo‐liberal pillar has made an impact on the subsequent leaderships under Young Sam Kim (1993–1998) and Dae Jung Kim (1998‐present). After briefly reviewing the major aspect of Korean economy and labor problems surrounding the financial crisis of East Asia around 1998, the international influence of Fordian decline and neo‐liberalization as a Korean alternative has been discussed.
B. Anthony Billings, Chansog (Francis) Kim and Cheol Lee
In view of the recent enhanced concerns of the SEC and PCAOB that Accounting Principles Board Opinion No. 23 (APB 23)–asserting firms do not comply with the “sufficient evidence”…
Abstract
In view of the recent enhanced concerns of the SEC and PCAOB that Accounting Principles Board Opinion No. 23 (APB 23)–asserting firms do not comply with the “sufficient evidence” criteria of APB 23, we examine whether APB 23–asserting firms that declared their foreign earnings as permanently reinvested abroad are less likely to repatriate those foreign earnings under the American Jobs Creation Act (AJCA) of 2004, compared with similar non-asserting firms. The asserting firms are required to disclose sufficient evidence that validates an ability to meet their domestic cash needs with only earnings generated in the United States and their plans to indefinitely reinvest foreign earnings outside the United States. Estimates show that asserting firms are more likely to repatriate their foreign earnings than non-asserting firms. In addition, we find that the probability of making an election to repatriate permanently invested foreign earnings under the AJCA of 2004 is higher for firms with nonbinding foreign tax credit (FTC) limitations that have made an APB 23 declaration to permanently invest foreign earnings abroad. These findings suggest that asserting firms’ declarations to indefinitely reinvest foreign earnings abroad are not well grounded, thereby indirectly validating the SEC’s and PCAOB’s increased scrutiny for supporting evidence for APB 23 assertion. The estimates also show that the likelihood of making an election to repatriate foreign earnings under the AJCA of 2004 increases with asserting firms’ liquidity constraints and financial distress: the financial characteristics listed as part of APB 23 criteria of sufficient evidence and highlighted by the SEC and PCAOB comment letters, indicating that asserting firms raid permanently reinvested foreign earnings to satisfy their financial needs and constraints.
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Taewoo Roh, Dong-Sung Cho, Hwy-Chang Moon and Yun-Cheol Lee
– The aim of this study is to examine the entry mode that retail firms correctly choose when culture is simultaneously considered has a positive effect on firm performance.
Abstract
Purpose
The aim of this study is to examine the entry mode that retail firms correctly choose when culture is simultaneously considered has a positive effect on firm performance.
Design/methodology/approach
This study relies on the two-step analysis originally derived from Heckman and applied into multinational enterprises (MNEs) entry mode by Shaver. To figure out the probability of entry mode in the first step, the paper uses the logit regression that independent variable is four culture dimensions and dependent variable is the entry mode (joint venture vs wholly owned subsidiary). Since the selection bias is relatively reduced by adding lambda calculated in the first step to the second step that verifies the degree of fit, the safety for interpretation of subsequent models is secured.
Findings
This study collected 96 entries of top global retail firms and found out the relationship between culturally determined entry mode and firm performance is positively significant. While existing literatures dealing with manufacturing firms' international entries showed that wholly owned subsidiary is favored over joint venture when the cultural distance is high, this study focusing on retail firms in the service sector indicates that those firms are more likely to enter the global market with joint venture. Finally, firms that appropriately understand cultural distance demonstrated higher performance in the target country.
Originality/value
This study focuses on the relationship between culturally determined entry mode and firm performance in the service sector, whereas extant literatures heavily depend on the one in the manufacturing sector. Moreover, the two-step analysis is exquisitely adopted to confirm the hypotheses.