Yi‐xiang Tian, Qiu‐ping Yang and Jing‐tao Yuan
Reverse floating interest rate‐linked structured products are important innovative products for investors to achieve a relatively high yield at low interest rates, and the…
Abstract
Purpose
Reverse floating interest rate‐linked structured products are important innovative products for investors to achieve a relatively high yield at low interest rates, and the reasonable pricing of such products is an important factor to influence investors' needs and issuers' profits. The purpose of this paper is to empirically analyze the rationality of the pricing of reverse floating interest rate‐linked products.
Design/methodology/approach
This paper combines the Itô's Lemma and introduces the Black‐Derman‐Toy (BDT) model into the time‐varying volatility to build a binary tree interest rates BDT model under the time‐varying volatility, and to establish the pricing model of reverse floating interest rate‐linked products. Dozens of product data of ABN AMRO Bank and other world‐renowned banks or financial institutions are empirically analyzed.
Findings
The results show that the average pricing of these products is high, and the expected rate of return of the product is lower than the same period of the Five‐year US Treasury Bill rate.
Originality/value
This paper has combined the theory and practice together. The research method described in this paper is of significance to the pricing of interest rate‐linked structured products, and the pricing method of binary tree BDT model to solve the term structure of interest rates and estimation problem of volatility term structure of interest rates.
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Yongzhi Du, Yi Xiang and Hongfei Ruan
The purpose of this study is to examine how the childhood trauma experiences of CEOs influence firms’ internationalization.
Abstract
Purpose
The purpose of this study is to examine how the childhood trauma experiences of CEOs influence firms’ internationalization.
Design/methodology/approach
The research used a difference-in-difference method with constructing a treatment group whose chief executive officer (CEO) experienced the great famine in China between the ages of 7 and 11, and a control group whose CEO was born within three years after 1961.
Findings
The study reveals a significant inverse correlation between CEOs’ childhood trauma experiences and firm internationalization. However, this correlation is weaker in the case of state-owned enterprises and firms led by CEOs with overseas work experience.
Originality/value
To the best of the authors’ knowledge, this study is the first to extend the theoretical framework to elucidate firms’ internationalization by introducing childhood trauma theory into the field of international business literature. Second, the authors link the literature on the effect of CEO explicit traits and psychological traits on firm internationalization by exploring how CEOs’ childhood trauma experience shapes their risk aversion, which, in turn, influences firm internationalization. Third, the authors address the call for examining the interplay of CEO life experiences by scrutinizing the moderating effect of CEO overseas work experience on the association between CEOs’ childhood trauma exposure and firm internationalization.
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This paper aims to check the presence of such relationship in the field. Certain values are at stake for the success of economic behavior. Since the genesis of modern capitalism…
Abstract
Purpose
This paper aims to check the presence of such relationship in the field. Certain values are at stake for the success of economic behavior. Since the genesis of modern capitalism, a set of beliefs proper of Calvinism (mainly Predestination but also Beruf, inner-worldly asceticism, role of Sects […] ) was said by Max Weber to cause an anxiety about salvation and generate a propensity to economic success as a sign of election. The author argues on the contrary that the Calvinist belief in the Perpetual Assurance of Salvation might cause a sense of self-efficacy able to favor economic success. To observe this in action today, it is crucial to consider the evolution that the Protestant ethic went through migrating first in North America and, finally, through the Protestant revival of China. Wenzhou is called “Jerusalem of China” for its large Protestant community that is also strongly involved in business. Some scholar already pointed out the presence among those entrepreneurs of this Protestant ethic (Yi Xiang, Boss-Christian […]).
Design/methodology/approach
The data presented in this comparative qualitative study pertain to ethnographic observations, job-shadowing and interviews done among Chinese Christian and non-Christian entrepreneurs from Wenzhou living in Milan, Italy.
Findings
The results show, with some adjustments, the presence of a Chinese version of the Protestant ethic overlapping with several values proper to the Chinese context (Confucianism, lineage, social network). The extension of the study to other cases must be done with caution considering the non-causal justificatory role of the belief.
Originality/value
Successful entrepreneurship involves specific social, cultural and even religious aspects that move beyond mere business strategies.
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Wenjie Bi, Yujie Wang, Yi Xiang and Feida Zhang
In this paper the authors aim to argue that the existence of a strong corporate governance mechanism (a formal credibility-enhancing mechanism) and the presence of a more…
Abstract
Purpose
In this paper the authors aim to argue that the existence of a strong corporate governance mechanism (a formal credibility-enhancing mechanism) and the presence of a more trustworthy-looking CEO (an informal credibility-enhancing mechanism) are substitutes.
Design/methodology/approach
By using machine-learning-based facial-feature-point detection technique, the authors construct a proprietary facial-trustworthiness database for a large-scale of CEOs in the US listed companies. First, the authors manually search for qualifying CEO image from websites and annual reports. Second, by following the neuroscience and psychology literature, the authors use the machine-learning-based face detector to identify the facial features in the CEO photos to calculate a rich and reliable set of facial-trustworthiness measures. The authors then construct a composite facial-trustworthiness index for each CEO. After obtaining accounting data, the authors’ final sample comprises 16,201 firm-year observations for 3,186 CEOs in the sample period of 2000-2018.
Findings
The results of the authors’ regression analyses show a negative association between board monitoring intensity and CEOs' facial trustworthiness, indicating that board directors may factor CEOs' facial trustworthiness into their monitoring decisions. Moreover, the authors find that these results are mainly driven by CEOs whose tenure is below the third quartile (i.e. eight years). The authors further find stronger results for externally hired CEOs than internally promoted CEOs. Finally, the authors’ results remain robust when using change models or subsample of CEO photos in recent years.
Originality/value
First, to the best of the authors’ knowledge, this is the first study that adopts a large sample to provide systematic evidence on the directors' use of facial trustworthiness. This study extends the literature by documenting the impacts of CEOs' individual characteristics on the board monitoring intensity. Second, the results of this study emphasized the important role of perceptions based on executives' facial appearance in firm valuation, executive compensation and audit fee, and by presenting empirical evidence that CEOs' facial trustworthiness affects board monitoring intensity. Third, this study responds to the call for research on personalized trust by Hsieh et al. (2020).
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This paper seeks to discuss the genealogical sources for Chinese immigrants as well as the settlement of Chinese in the USA and the historical evolution of Chinese names, their…
Abstract
Purpose
This paper seeks to discuss the genealogical sources for Chinese immigrants as well as the settlement of Chinese in the USA and the historical evolution of Chinese names, their origins, arrangement and development. It aims to cover the origins of various classes of Chinese surnames, followed by the content description of a traditional genealogical book for jiapu.
Design/methodology/approach
The paper researches the various ways that a Chinese person can find out about their ancestry.
Findings
The paper reveals the roles of libraries, including serving the needs of patrons interested in genealogical research, preserving and interpreting information through oral and family history projects and collaborating with other libraries through interlibrary loan, document delivery, library consortia, collection management and international resource‐sharing.
Research limitations/implications
The study provides information on where and how to locate the genealogical resources for researching the genealogy of a Chinese family.
Originality/value
The paper analyzes the value of genealogical research as a documentary source for population history, life expectancy in a clan, marriages and family connections, as well as lineage organizations and inter‐lineage relations.