In the practice of venture capital investment, the venture capital will not only claim the share of the enterprise’s future output, but also a certain amount of fixed income. The…
Abstract
Purpose
In the practice of venture capital investment, the venture capital will not only claim the share of the enterprise’s future output, but also a certain amount of fixed income. The purpose of this paper is to examine the optimal contract which blends the variable ownership income and the fixed income theoretically so as to provide a keen insight into the venture capital practice.
Design/methodology/approach
This paper establishes an extended principal-agent model and researches on the design of optimal contract dominated by venture capital with double-sided moral hazard and information screening.
Findings
By establishing theoretical models, the main findings are: first, high-quality enterprise tends to relinquish less ownership but give more fixed return to the venture capital as compensation in order to obtain the venture capital financing; second, low-quality enterprise is willing to relinquish more ownership but give less fixed return to the venture capital for financing; third, due to the existence of double-sided moral hazard, neither of the venture capital and the enterprise will exert their best effort.
Originality/value
This paper furthers the application of principal-agent model in the field of venture capital investment and researches on the optimal contract, considering double-sided moral hazard and adverse selection at the same time originally.
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Abstract
Purpose
The purpose of this research is to empirically analyze the influence of the financial crisis on the investment behavior of sovereign wealth funds (SWFs).
Design/methodology/approach
Using 615 deals from 20 SWFs, a series of research are designed and conducted to compare the SWFs' governance, external environment, investment strategy and financial markets' feedback around the crisis.
Findings
The paper finds that the recent financial crisis did not only bring SWFs heavy losses and the pressure to improve its image and governance structure, but also a precious opportunity of a better external environment by easing the nerves of the recipient country's government. Their investment strategies will be more positive, diversified and complementary to their own real economy. The event studies illustrate that financial markets turn to be more effective after the crisis. The market reaction to SWF's investment tends to mitigate speculative trading to a larger extent, which is shown by the lower cumulative abnormal return and turnover volatility.
Originality/value
This paper tries to test the change of SWFs' behavior pro‐ and post‐crisis. It reveals that SWFs have changed their effects on SWF's home country, SWF's host country, the financial market and the real economy after the financial crisis, which is helpful for government and institutions to maintain the stability of the national economy and security market.
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Corporate governance has attracted enormous attention both in the area of law and in the area of financial economics. In comparative corporate governance studies, many people have…
Abstract
Corporate governance has attracted enormous attention both in the area of law and in the area of financial economics. In comparative corporate governance studies, many people have devoted their energy to find a best corporate governance model. I argue that a functional analysis does not support the view that there is a single best corporate governance model in the world. I further use the transplantation of an English style takeover law into China to show that the importation of foreign law is not always based on careful analysis whether the imported foreign law is the best in the world. Furthermore, I use the subsequent adjustment of the transplanted English takeover law in China to show that the imported foreign law is subject to local political and economic conditions. If there is no best corporate govern model and the transplantation of foreign law into other countries with different social and political background does not achieve similar objectives, the search for a best corporate governance model is misguided. Just as tort law or constitutional law regimes may have diversified models, so do corporate governance regimes in countries with different historical, social and political backgrounds.
Lan Chu, Chao Guo, Qing Zhang, Qing Wang, Yiwen Ge, Mingyang Hao and Jungang Lv
This study aims to using Fourier transform infrared (FTIR) spectroscopy, Raman spectroscopy and scanning electron microscope/energy dispersive Xray spectrometer to identify…
Abstract
Purpose
This study aims to using Fourier transform infrared (FTIR) spectroscopy, Raman spectroscopy and scanning electron microscope/energy dispersive Xray spectrometer to identify different automotive coatings for forensic purpose.
Design/methodology/approach
Two four-layered samples in a hit-and-run case were compared layer by layer with three different methods. FTIR spectroscopy was used to primarily identify the organic and inorganic compositions. Raman spectrum and scanning electron microscope/energy dispersive Xray spectrometer (SEM-EDS) were further used to complement the FTIR results.
Findings
Two weak and tiny peaks in one layer found between two samples by FTIR, Raman microscope and SEM-EDS verified the result of differences. The study used the three instruments in combination and found it’s effective in sensing coatings, especially in the inorganic additives.
Research limitations/implications
Using these three instruments in combination is more accurate than individually in multilayered coating analysis for forensic purpose.
Practical implications
The three different instruments all present unique information on the composition, and provided similar and mutually verifiable results on the two samples.
Originality/value
With this method, scientists could identify and discriminate important coating evidences with tiny but characteristic differences.
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Yiwen Li, Zhihai Dong, Junyan Miao, Huifang Liu, Aleksandr Babkin and Yunlong Chang
This paper aims to anticipate the possible development direction of WAAM. For large-scale and complex components, the material loss and cycle time of wire arc additive…
Abstract
Purpose
This paper aims to anticipate the possible development direction of WAAM. For large-scale and complex components, the material loss and cycle time of wire arc additive manufacturing (WAAM) are lower than those of conventional manufacturing. However, the high-precision WAAM currently requires longer cycle times for correcting dimensional errors. Therefore, new technologies need to be developed to achieve high-precision and high-efficiency WAAM.
Design/methodology/approach
This paper analyses the innovations in high-precision WAAM in the past five years from a mechanistic point of view.
Findings
Controlling heat to improve precision is an effective method. Methods of heat control include reducing the amount of heat entering the deposited interlayer or transferring the accumulated heat out of the interlayer in time. Based on this, an effective and highly precise WAAM is achievable in combination with multi-scale sensors and a complete expert system.
Originality/value
Therefore, a development direction for intelligent WAAM is proposed. Using the optimised process parameters based on machine learning, adjusting the parameters according to the sensors’ in-process feedback, achieving heat control and high precision manufacturing.
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Yin Shi, Liping Ding, Chenchen He, Fan Zhang, Zumeng Zhang and Qiyao Dai
This study aims to analyze those factors affecting the rural resident’s willingness to adopt solar photovoltaic (PV) which is important for accelerating the popularization of…
Abstract
Purpose
This study aims to analyze those factors affecting the rural resident’s willingness to adopt solar photovoltaic (PV) which is important for accelerating the popularization of clean energy in China.
Design/methodology/approach
This study contained a sample of 653 households in 8 provinces/regions by stratified, and random sampling in rural China. Descriptive analysis, exploratory factor analysis and confirmatory factor analysis techniques have been used for analytical purposes.
Findings
The empirical results indicate that financial incentive and social interaction have positive effects on rural residents’ adoption willingness, while village leaders’ engagement can indirectly influence their adoption willingness through social interaction and residents’ cognition.
Research limitations/implications
This study mainly considers external and internal factors but ignores the effect of technical factors. In addition, the samples are just selected from the residents who have adopted solar PV.
Practical implications
This study is expected to be useful for the government, regulators, village leaders, village leaders and other institutions.
Originality/value
This study conducts a systematic analysis and clarifies the relationship between factors (external and internal) and rural residents’ adoption willingness. The village leaders’ engagement is first added to the conceptual model as an external factor, which is very essential in rural residents’ adoption in China.