Shuang Zhang, Song Xi Chen and Lei Lu
With the presence of pricing errors, the authors consider statistical inference on the variance risk premium (VRP) and the associated implied variance, constructed from the option…
Abstract
Purpose
With the presence of pricing errors, the authors consider statistical inference on the variance risk premium (VRP) and the associated implied variance, constructed from the option prices and the historic returns.
Design/methodology/approach
The authors propose a nonparametric kernel smoothing approach that removes the adverse effects of pricing errors and leads to consistent estimation for both the implied variance and the VRP. The asymptotic distributions of the proposed VRP estimator are developed under three asymptotic regimes regarding the relative sample sizes between the option data and historic return data.
Findings
This study reveals that existing methods for estimating the implied variance are adversely affected by pricing errors in the option prices, which causes the estimators for VRP statistically inconsistent. By analyzing the S&P 500 option and return data, it demonstrates that, compared with other implied variance and VRP estimators, the proposed implied variance and VRP estimators are more significant variables in explaining variations in the excess S&P 500 returns, and the proposed VRP estimates have the smallest out-of-sample forecasting root mean squared error.
Research limitations/implications
This study contributes to the estimation of the implied variance and the VRP and helps in the predictions of future realized variance and equity premium.
Originality/value
This study is the first to propose consistent estimations for the implied variance and the VRP with the presence of option pricing errors.
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Jiaxin Duan, Yixin (Lucy) Wei and Lei Lu
This study aims to examine the behaviour of institutional and retail investors in response to news about industry leaders (peer firms) and to determine its impact on the stock…
Abstract
Purpose
This study aims to examine the behaviour of institutional and retail investors in response to news about industry leaders (peer firms) and to determine its impact on the stock prices of other firms (focal firms) within the same industry.
Design/methodology/approach
The study investigates the impact of peer news on investor behaviour of Chinese A-shares listed on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2019. The media coverage of industry leaders is sourced from prominent Chinese online financial outlets and the Chinese Financial Press. Support vector machine is applied to identify the positive, neutral and negative news within the articles. The study uses event study and logistic regression to examine the effects of peer news on focal firms’ investor behaviour.
Findings
The results show that both good and bad news about leaders cause peers’ stock prices to increase initially, but then reverse within one quarter. Further analysis reveals that when leaders’ shares receive positive news coverage, institutional investors tend to exert excessive abnormal buying pressure on peers’ shares, resulting in overreactions. Conversely, retail investors do not actively trade on peers on leaders’ news day due to limited attention. In addition, the study shows that short-selling constraint inhibits bad news from reflecting in the stock prices.
Originality/value
The study highlights differences in investor behaviour. The finding that institutional investors tend to overreact more to peer firms’ news when focal firms are smaller and have a lower frequency of information disclosure supports the salient theory. This is consistent with the previous framework that suggests overreaction is more pronounced when it is difficult to combine external sources of information to evaluate the focal firms. In contrast, retail investors do not engage in active trading on peers on leaders’ news day due to the limited attention theory.
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Zhiyong Yang, Ying Wang and Jiyoung Hwang
Generation Z makes up 20% of China’s population, and accounts for the highest share of household spend at 13% (vs. 3% for the United Kingdom and 4% for the United States). To…
Abstract
Generation Z makes up 20% of China’s population, and accounts for the highest share of household spend at 13% (vs. 3% for the United Kingdom and 4% for the United States). To advance marketers’ understanding about this group of consumers and capitalise on China’s booming market, this chapter uses rich statistics and information to show that China’s Generation Z has distinct behaviour patterns, which can be attributed to the unique background in which they grew up: (1) rigidity of social stratification, (2) abundance of materialism, (3) digital era, (4) limited (vs. extended) family, and (5) heavy schoolwork. Growing up in such a background, Generation Z’s lifestyle and consumption-related attitudes and behaviour are distinct from their predecessors. The chapter presents specific actions that marketers can take when targeting this distinct group of consumers in China, along with useful guidelines to HR managers for hiring them.
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Yuanqiang Zhou, Lei Lu and Bo Jiang
More and more foreign companies, including multinational companies, open business in China. The staff management under the local culture of China is one of the critical points…
Abstract
Purpose
More and more foreign companies, including multinational companies, open business in China. The staff management under the local culture of China is one of the critical points affecting the success of foreign invested companies in China. This paper aims to illustrate the effective methods of staff management for foreign invested companies in China.
Design/methodology/approach
For this purpose, a survey on concrete practices of staff management was conducted among three multinational company affiliates in China, whose parent companies are located in the USA, Japan, and Europe, respectively, by the in‐depth interviews with the high‐level executives of the affiliates.
Findings
It was found that although the staff management experiences of the surveyed affiliates show differences in operation, the affiliates have a common sense on how to balance culture difference, how to effectively communicate with staff, and how to appraise the performance. The active and passive factors of these experiences were further analysed from the needs level under current Chinese economic situation and from the invisible impacts on human behaviour of Chinese culture.
Research limitations/implications
This study surveyed only three multinational company affiliates in China and therefore, the understanding obtained is limited in scope. The comprehensive knowledge of the subject depends on more case studies.
Practical implications
The analysis reveals that the active factors and localization, especially localization of the management team, are very important to the staff management of foreign invested companies in China.
Originality/value
The paper contributes to the research on effective methods for staff management in multinational companies.
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Qiaoran Zhang, Abdelhafid Zehri, Jiawen Liu, Wei Ke, Shirong Huang, Martí Gutierrez Latorre, Nan Wang, Xiuzhen Lu, Cheng Zhou, Weijuan Xia, Yanpei Wu, Lilei Ye and Johan Liu
This study aims to develop a bimodal nano-silver paste with improved mechanical property and reliability. Silicon carbide (SiC) particles coated with Ag were introduced in…
Abstract
Purpose
This study aims to develop a bimodal nano-silver paste with improved mechanical property and reliability. Silicon carbide (SiC) particles coated with Ag were introduced in nano-silver paste to improve bonding strength between SiC and Ag particles and enhance high-temperature stability of bimodal nano-silver paste. The effect of sintering parameters such as sintering temperature, sintering time and the proportion of SiC particles on mechanical property and reliability of sintered bimodal nano-silver structure were investigated.
Design/methodology/approach
Sandwich structures consist of dummy chips and copper substrates with nickel and silver coating bonded by nano-silver paste were designed for shear testing. Shear strength testing was conducted to study the influence of SiC particles proportions on the mechanical property of sintered nano-silver joints. The reliability of the bimodal nano-silver paste was evaluated experimentally by means of shear test for samples subjected to thermal aging test at 150°C and humidity and temperature testing at 85°C and 85 per cent RH, respectively.
Findings
Shear strength was enhanced obviously with the increase of sintering temperature and sintering time. The maximum shear strength was achieved for nano-silver paste sintered at 260°C for 10 min. There was a negative correlation between the proportion of SiC particles and shear strength. After thermal aging testing and humidity and temperature testing for 240 h, the shear strength decreased a little. High-temperature stability and high-hydrothermal stability were improved by the addition of SiC particles.
Originality/value
Submicron-scale SiC particles coated with Ag were used as alternative materials to replace part of nano-silver particles to prepare bimodal nano-silver paste due to its high thermal conductivity and excellent mechanical property.
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Sheng Liu, Xiao Lin and Xiuying Chen
This paper aims to reveal the green governance role played by stock connect in transition economies from the perspective of corporates’ environmental violations and provides…
Abstract
Purpose
This paper aims to reveal the green governance role played by stock connect in transition economies from the perspective of corporates’ environmental violations and provides implications for the coordination and optimization of subsequent stock market liberalization and green transformation policies in pursuit of carbon peaking and carbon neutrality goals.
Design/methodology/approach
With the data of Chinese listed enterprises, this paper takes the Shanghai-Hong Kong Stock Connect or Shenzhen-Hong Kong Stock Connect in China as a quasi-natural experiment and applies the multi-period difference-in-difference (DID) model to identify the impact of stock market liberalization on the corporates’ environmental violations.
Findings
The findings reveal that the stock market liberalization significantly restrains the corporates’ environmental violations. These findings are robust to a series of sensitivity tests, including excluding two-way effects, adjusting the year of policy implementation, replacing the core variables, introducing the regional fixed effects and excluding the interference effect of other relevant policies during the sample period. Furthermore, the stock market liberalization is beneficial for upgrading information disclosure quality, improving internal governance capability, strengthening environmental protection incentives, and thus restrains corporates’ environmental violations. Meanwhile, heterogeneity tests show that the inhibitory effects are more significant in those grouped samples which is large scale, state-owned nature, located in eastern region, with poor evaluation performances and heavy tax burden.
Originality/value
We make two marginal contributions to the current literature. First, this paper enriches the literature on the factors influencing corporate environmental violations by focusing on how the macro-level financial policy influences the micro-level corporate environmental violations. One the one hand, prior studies mainly focused on the consequences of corporate environmental violations; however, there is still a puzzle that the effect of stock market liberalization cannot be fully justified to influence corporate environmental violations. The findings help explain this puzzle by examining that stock market liberalization can restrain corporate environmental violations. Moreover, prior studies mainly focused on corporate share price (Yunsen Chen et al., 2022), market liquidity (Han Kim and Singal, 2000), information disclosure (Liang, Lin, and Chin 2012), corporate governance (Bae and Goyal, 2010) and corporate violations (Lingyun Xiong et al., 2021), but not on corporate environmental violations. We assume that the suppression effect of stock market liberalization on corporate environmental violations can help reduce corporate environmental violations, improve corporates’ awareness of environmental compliance. Second, this paper contributes to a better understanding of the literature on stock market liberalization by investigating the restraining effect of Stock Connect on corporate environmental violations from the perspective of information channel, corporate governance channel and motivation channel, which is of practical significance. Moreover, we investigate the differences in the inhibitory effects of stock market liberalization on different enterprises' environmental violations, from firm size, property rights, enterprise assessment results, tax burden to geographical location, which is conducive to the construction of a green financial system and the promotion of sustainable economic development. Our results show that firms which are large scale, state-owned nature, located in eastern region, with poor evaluation performances and heavy tax burden tend to compliance with environmental laws. These findings emphasize the importance and benefits of Stock Connect.
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Sabeen Hussain Bhatti, Saifullah Khalid Kiyani, Scott B. Dust and Ramsha Zakariya
Although the use of project teams is on the rise, there is a limited understanding of how project managers can ensure project team success. Research to date is relatively broad…
Abstract
Purpose
Although the use of project teams is on the rise, there is a limited understanding of how project managers can ensure project team success. Research to date is relatively broad and does not pinpoint how and why leadership influences success in a project team context. Along these lines, we draw from social learning theory to illustrate that ethical leadership influences project success through leader trust and knowledge sharing.
Design/methodology/approach
We collected data from 175 project team members from the information technology and software industry to evaluate our hypotheses. The results were analyzed using structural equation modeling.
Findings
Our findings support our hypotheses, illustrating that ethical leadership is related to leader trust and knowledge sharing, and that leader trust and knowledge sharing mediate the relationship between ethical leadership and project success.
Research limitations/implications
Our work illustrates that the behaviors inherent in ethical leadership may be particularly well-suited for these project team challenges. Ethical leaders help team members understand that project success is possible when team members are transparent with one another, discussing their goals and challenges, and then working together to ensure their actions are coordinated in a way that increases the success of the overall project.
Practical implications
For those in industries or organizations where project teams are commonly used, our study may help to attract, select, and retain project managers that exhibit ethical leadership tendencies. Project managers are likely to be attracted to settings that align with their leadership style. Thus, organizations could focus on developing a culture that focuses on process over results.
Originality/value
We sought to align with the contingency approach to leadership, which suggests that the ideal leadership style depends on the followers, and the context in which the leader and followers interact. Specifically, we investigate ethical leadership as an ideal approach for project managers influencing members of their project teams. Our study demonstrates how ethical leadership is an ideal, context-specific approach that project managers can apply to increase the chances of project success.
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Jing Xu, Xiaoju Long, Jiaojing Zhang and Song Wu
A novel semiconducting macromolecule-polyperylene tetraamide (PPTI) was first synthesized with a simple method using 3, 4, 9, 10-perylene tetracarboxylic acid (PTCA) and hydrazine…
Abstract
Purpose
A novel semiconducting macromolecule-polyperylene tetraamide (PPTI) was first synthesized with a simple method using 3, 4, 9, 10-perylene tetracarboxylic acid (PTCA) and hydrazine hydrate (N2H4).
Design/methodology/approach
The Ag nanoparticle was doped on the surface or inside of the PPTI film to obtain a highly sensitive hydrazine sensor-Ag/PPTI, which was synthesized within one step. The structure of Ag/PPTI was characterized through various techniques such as Fourier transform infrared (FT-IR), thermogravimetric analyzer (TGA), X-ray diffraction (XRD), X-ray photoelectron spectroscopy measurements (XPS) and scanning electronic microscopy (SEM).
Findings
According to cyclic voltammetry results, Ag/PPTI/GCE indicated good electrocatalytic activity toward the oxidation of hydrazine. The amperometric detection of hydrazine was then applied on Ag/PPTI/GCE. It exhibited a wide linear range from 0.05 to 50 µM, a low detection limit (S/N = 3) of 0.05 µM and high sensitivity of 0.45 µA/(µM•cm2).
Originality/value
In authors’ perception, this approach emerges as an effective technique for developing efficient chemical sensors for environmental pollutants.
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Mahadi Hasan Miraz and Tiffany Sing Mei Soo
The objective of this study is to examine the various factors that exert an influence on the green economy. This study also investigates the impact of foreign direct investment…
Abstract
Purpose
The objective of this study is to examine the various factors that exert an influence on the green economy. This study also investigates the impact of foreign direct investment (FDI) on the Malaysian economy, specifically focusing on its position as a mediator. This research also examines the correlation between FDI and its influence on the contemporary green economy.
Design/methodology/approach
The authors employed quantitative methodologies and a self-administered survey to evaluate data and derive a definitive conclusion. The result was constructed using SPSS and SEM-PLS as the analytical software.
Findings
The study reveals that technological advancement, investment country and government policy significantly and positively affect the green economy, catalyse SDG goals and restructure the economy in better shape.
Originality/value
The current empirical research bridges the research gap in the context of technology advancement in government policy from emerging economies by exploring important factors, proposing their impact on the performance of the green economy, and empirically testing those hypothesized relationships. This study deciphers that FDI influences the green economy, where the investment country plays a significant role. Also, for a graphical presentation of this abstract, see the online appendix.