Xiao Song, Hao Ying, Xiande Zhao and Lujie Chen
The accounts receivable pool (ARP) is an e-invoice management system that provides suppliers with easy access to financial service. The purpose of this paper is to focus on the…
Abstract
Purpose
The accounts receivable pool (ARP) is an e-invoice management system that provides suppliers with easy access to financial service. The purpose of this paper is to focus on the strength and weakness of ARP mechanism and suggest efficient methods to identify creditworthy borrowers.
Design/methodology/approach
By decomposing the sales records of 348 ARP borrowers and predicting the occurrence of overdue incidences, this study first portrays the creditworthy borrowers by sales features. Then, content analysis was applied to measure the loadings of soft and hard information, and examined the effectiveness of different information structures in creditworthiness assessment.
Findings
For ARP borrowers, upward trend and low volatility reveal their creditworthiness. In order to identify creditworthy borrowers beforehand, ARP financiers who have elaborated more soft information and less hard information can perform better.
Originality/value
This study first discussed ARP finance from a critical perspective and underlines borrower assessment to eliminate the defect of loose recourse. The empirical evidence presents the sales features of creditworthy borrowers. Moreover, the results suggest an efficient approach for ARP financiers to conduct better assessment.
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Hao Ying, Lujie Chen and Xiande Zhao
This study aims to clarify the risk management practices of banks as supply chain finance (SCF) service providers.
Abstract
Purpose
This study aims to clarify the risk management practices of banks as supply chain finance (SCF) service providers.
Design/methodology/approach
Using 4,014 evaluation and approval reports, this study constructed five risk management factors and examined their functions with secondary data. Two text-mining techniques (i.e. word sense induction, TF–IDF) were used to equip the classic routine of dictionary-based content analysis.
Findings
This research successfully identified four important risk management factors: relationship-based assessment, asset monitoring, cash flow monitoring and supply chain collaboration. The default-preventing effect of these factors are different and contingent on the type of financing contexts (i.e. preshipment, postshipment).
Practical implications
The empirical evidences provide practical implications for SCF service providers to manage risk. SCF service providers are suggested to pay more attention to cash flow monitoring when providing postshipment financing services and shift the focus to relationship building and supply chain collaboration when providing preshipment financing services.
Originality/value
The study shows that a large volume of textual materials can provide adequate clues for researches as long as they are mined with suitable analytic techniques and approaches. Based on the results, SCF service providers can identify problems of their operations and directions for improvement. In addition, the risk management vocabulary from the E&A reports can be utilized by SCF service providers to digitize their loan approving process and, further, to facilitate the decision-makings.
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Ying‐Chieh Chen, Shui‐Chuan Chen and Ying‐Hao Chen
The purpose of this paper is to explore the system requirements model. According to the concept of loss costs of Type I and Type II errors, it can define the optimal decision…
Abstract
Purpose
The purpose of this paper is to explore the system requirements model. According to the concept of loss costs of Type I and Type II errors, it can define the optimal decision line, and reduce overall loss costs. Moreover, it can decrease the probability of Type I and Type II error by the systems thinking, and it can effectively reduce overall loss costs.
Design/methodology/approach
The paper proposed a system demand model and constructed a decision‐making system thinking model as well as a decision‐making performance management model using the principle of system demand. Types of decision‐making errors were analyzed to set judgments on the error risk and establish a model of improvement evaluation key factors, in order to reduce decision‐making error risk and enhance decision quality. It also constructed the improved decision‐making to assess the key factors, to reduce the risk of making errors in order to improve the quality of decision‐making.
Findings
Optimistic decision‐makers (risk takers) tend to make Type II errors, whereas pessimistic decision makers (conservatives) tend to make Type I errors. Financial depressions are the time for optimistic decision makers (risk takers) and boom periods are the time for pessimistic decision makers (conservatives).
Originality/value
The concept of the loss cost of two decision‐making errors and related cost function models were proposed. Decision makers could make decisions with a more stable model, taking into consideration false alarms and the cost function of errors in order to determine the position of the decision‐making line. It could effectively reduce decision‐making error costs and increase the precision of decision‐making.
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Yi-Cheng Huang and Ying-Hao Li
This paper utilizes the improved particle swarm optimization (IPSO) with bounded constraints technique on velocity and positioning for adjusting the gains of a…
Abstract
Purpose
This paper utilizes the improved particle swarm optimization (IPSO) with bounded constraints technique on velocity and positioning for adjusting the gains of a proportional-integral-derivative (PID) and iterative learning control (ILC) controllers. The purpose of this paper is to achieve precision motion through bettering control by this technique.
Design/methodology/approach
Actual platform positioning must avoid the occurrence of a large control action signal, undesirable overshooting, and preventing out of the maximum position limit. Several in-house experiments observation, the PSO mechanism is sometimes out of the optimal solution in updating velocity and updating position of particles, the system may become unstable in real-time applications. The proposed IPSO with new bounded constraints technique shows a great ability to stabilize nonminimum phase and heavily oscillatory systems based on new bounded constraints on velocity and positioning in PSO algorithm is evaluated on one axis of linear synchronous motor with a PC-based real-time ILC.
Findings
Simulations and experiment results show that the proposed controller can reduce the error significantly after two learning iterations. The developed method using bounded constraints technique provides valuable programming tools to practicing engineers.
Originality/value
The proposed IPSO-ILC-PID controller overcomes the shortcomings of conventional ILC-PID controller with fixed gains. Simulation and experimental results show that the proposed IPSO-ILC-PID algorithm exhibits great speed convergence and robustness. Experimental results confirm that the proposed IPSO-ILC-PID algorithm is effective and achieves better control in real-time precision positioning.
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Pawan Kumar, Ercan Özen and Serap Vurur
Purpose: The main aim of this study is to explore the emergence and significance of blockchain technology in the financial system. This analysis examines the early stages of the…
Abstract
Purpose: The main aim of this study is to explore the emergence and significance of blockchain technology in the financial system. This analysis examines the early stages of the adoption of blockchain technology.
Need of the study: To ascertain the viability of blockchain systems as a viable, fair, and traceable way of storing transaction records in Indian banking and financial services organisations.
Methodology: By virtue, this study is exploratory, following access to related studies on the implementation and applications of blockchain technology in the financial sector.
Findings: This study explores blockchain technology, its adoption, types, usefulness, benefits, challenges, and security concern in the banking sector.
Implications: This study will contribute to future research on applications of blockchain technology in the financial sector. It will help the researcher understand this technology’s importance and complications in the financial system.
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Nadia Hanif, Jianfeng Wu and Ahmad Bilal Babar
The primary purpose of this study is to explore the impact of acquired ownership in Chinese target firm on the innovation performance of developed economies (DE) acquiring firms…
Abstract
Purpose
The primary purpose of this study is to explore the impact of acquired ownership in Chinese target firm on the innovation performance of developed economies (DE) acquiring firms. Furthermore, the study aims to empirically investigate the moderating influence of institutional distance between two parties’ home countries.
Design/methodology/approach
For the empirical investigation of the hypotheses, the authors identified cross-border technological acquisitions from the Securities Data Company between 1995 and 2015. A hierarchical negative binomial regression technique was used to analyze 177 technological acquisitions completed by DE acquiring firms in China.
Findings
Analysis of technological acquisition deals confirmed that acquired ownership undertaken in the Chinese target firms increases the DE acquiring firms’ post-acquisition innovation performance. The authors found that DE acquiring firms underperform in innovation in institutionally distant host countries.
Originality/value
This study contributes to the international business literature by explaining the importance of acquired ownership undertaken in the Chinese target firms for the DE acquiring firm’s innovation performance. Second, institutional theory defines how institutional uncertainty in terms of distance modifies the positive impact of acquired ownership on acquiring firm’s innovation performance.
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Che-Chih Tsao, Ho-Hsin Chang, Meng-Hao Liu, Ho-Chia Chen, Yun-Tang Hsu, Pei-Ying Lin, Yih-Lin Chou, Ying-Chieh Chao, Yun-Hui Shen, Cheng-Yi Huang, Kai-Chiang Chan and Yi-Hung Chen
The purpose of this paper is to propose and demonstrate a new additive manufacturing approach that breaks the layer-based point scanning limitations to increase fabrication speed…
Abstract
Purpose
The purpose of this paper is to propose and demonstrate a new additive manufacturing approach that breaks the layer-based point scanning limitations to increase fabrication speed, obtain better surface finish, achieve material flexibility and reduce equipment costs.
Design/methodology/approach
The freeform additive manufacturing approach conceptually views a 3D article as an assembly of freeform elements distributed spatially following a flexible 3D assembly structure, which conforms to the surface of the article and physically builds the article by sequentially forming the freeform elements by a vari-directional vari-dimensional capable material deposition mechanism. Vari-directional building along tangential directions of part surface gives surface smoothness. Vari-dimensional deposition maximizes material output to increase build rate wherever allowed and minimizes deposition sizes for resolution whenever needed.
Findings
Process steps based on geometric and data processing considerations were described. Dispensing and forming of basic vari-directional and vari-dimensional freeform elements and basic operations of joining them were developed using thermoplastics. Forming of 3D articles at build rates of 2-5 times the fused deposition modeling (FDM) rate was demonstrated and improvement over ten times was shown to be feasible. FDM compatible operations using 0.7 mm wire depositions from a variable exit-dispensing unit were demonstrated. Preliminary tests of a surface finishing process showed a result of 0.8-1.9 um Ra. Initial results of dispensing wax, tin alloy and steel were also shown.
Originality/value
This is the first time that both vari-directional and vari-dimensional material depositions are combined in a new freeform building method, which has potential impact on the FDM and other additive manufacturing methods.
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Tingli Liu, Ying Jiang and Lizhong Hao
Although short selling has been legalized in China for nearly 10 years, due to the existence of short-sale constraints, its impact on corporate governance of listed companies…
Abstract
Purpose
Although short selling has been legalized in China for nearly 10 years, due to the existence of short-sale constraints, its impact on corporate governance of listed companies remains unclear. This paper aims to examine the impact of short-sale refinancing on earnings quality after the short-selling constraints have been released. The authors further explore whether this impact is subject to the nature of property rights and shareholding structures.
Design/methodology/approach
This study is based on a sample of A-share firms in China for the period 2014–2016. The authors use earnings response coefficients (ERC) as a proxy for earnings quality. To empirically examine this issue, a matching sample is generated by using propensity score matching method (PSM) to reduce sample selection bias.
Findings
This study provides evidence that deregulation of short selling has positive external effect on corporate governance. The results indicate that the potential short-selling opportunities can effectively suppress earnings manipulation and improve earnings quality. However, the impact of short selling on earnings quality varies for companies with different nature of property rights and shareholding structure.
Originality/value
To the best of the authors’ knowledge, this is the first study to investigate the relationship between short selling and earnings quality in the unique setting of short-sale refinancing. This study provides new evidence on the impact of short selling at the micro level and calls for further deregulation of short selling. In addition, this study contributes to existing studies on short-sale refinancing by examining an emerging market.
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Xiao-Ying Li, Zhen-Tao Li, Mu-Ming Hao, Qing-Yang Wang and Zeng-Li Wang
The purpose of this paper is to investigate the hydrodynamic performance of liquid film seals with oblique grooves (OGs) and spiral grooves (SGs), considering cavitation, compare…
Abstract
Purpose
The purpose of this paper is to investigate the hydrodynamic performance of liquid film seals with oblique grooves (OGs) and spiral grooves (SGs), considering cavitation, compare and analyze the differences between them.
Design/methodology/approach
Considering cavitation effect, the incompressible steady-state Reynolds equation was solved to obtain the sealing performance parameters of the liquid film seal with oblique groove and spiral groove.
Findings
The hydrodynamic performance of oblique groove seal (OGS) and spiral groove seal (SGS) shows a similar trend with the change of operating parameters. When the groove angle is less than 20°, the load-carrying capacity of SGS is better than that of OGS, while when the groove angle continues to increase, the hydrodynamic performance of OGS is slightly better than that of SGS, and more suitable for use under small differential pressure and high speed.
Originality/value
The hydrodynamic characteristics of liquid film seals with oblique grooves and spiral grooves considering cavitation effect were studied, which provides a theoretical reference for the application of oblique groove seal.
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Guirong Yang, Wenming Song, Zibo Zhu, Ying Ma and Yuan Hao
The paper aims to study the effect of liquid flow velocity on corrosion behavior of 20# steel at initial stage under (CO2/aqueous solution) gas–liquid two-phase plug flow…
Abstract
Purpose
The paper aims to study the effect of liquid flow velocity on corrosion behavior of 20# steel at initial stage under (CO2/aqueous solution) gas–liquid two-phase plug flow conditions.
Design/methodology/approach
Weight loss, scanning electron microscopy, energy-dispersive X-ray spectroscopy and XPS methods were used in this study.
Findings
The corrosion rate increased with the increasing liquid flow velocity at any different corrosion time. The corrosion rate decreased with the extension of corrosion time at the same liquid flow velocity. There was no continuous corrosion products film on the whole pipe wall at any different corrosion time. The macroscopic brown-yellow corrosion products on the pipe wall surface decreased with the increasing liquid flow velocity and the loose floccus corrosion products decreased gradually until these products were transformed into un-continuous needle-like dense products with the increasing liquid velocity. The main elements among the products film were Fe, C and O, and the main phases of products film on the pipe wall were Fe3C, FeCO3, FeOOH and Fe3O4. When the corrosion time was 1 h under different liquid–velocity condition, the thickness of local corrosion products film was from 3.5 to 3.8 µm.
Originality/value
The ion mass transfer model of corrosion process in pipe was put forward under gas–liquid two-phase plug flow condition. The total thickness of diffusion sublayer and turbulence sublayer decreased as well as the turbulence propagation coefficient increased with the increasing liquid velocity, which led to the increasing velocity of ion transfer during corrosion process. This was the fundamental reason for the increase of corrosion rate with the increasing liquid velocity.