Artie W. Ng

Reporting intellectual capital flow in technology‐based companies

Purpose – The paper seeks to explore the development of an intellectual capital flow statement based on a framework that harnesses contemporary research on intellectual capital.Design/methodology/approach – Case studies of wireless technology companies based in Canada are adopted to examine the interrelationship between intellectual capital components with a resource‐based view as well as deficiencies in their current financial reporting with respect to intellectual capital. An intellectual capital flow statement is proposed in order to capture the necessary characteristics.Findings – This study confirms the inter‐relationship between components of intellectual capital and business growth performance among the selected cases of wireless technology companies. It suggests an “add‐on” disclosure of intellectual capital flow that would enhance the usefulness and predictability of performance.Research limitations/implications – This study is based on case studies of six wireless technology companies and may no...

The quest to improve Chinese healthcare: some fundamental issues

Purpose – The purpose of this paper is to reveal the problems associated with unsatisfactory delivery of services in the current healthcare system of China as experienced by patients of diverse social‐economic backgrounds, including service quality, accessibility and affordability.Design/methodology/approach – Summarizing the developmental problems of Chinas contemporary healthcare system, this article is principally a literature review to investigate interdisciplinary issues, including the role of social medical insurance agency, continuous quality improvement and performance measurement system.Findings – The problems associated with unsatisfactory results of the output from the current healthcare system include the level of quality of services, accessibility and affordability, experienced by the patients of various social economic backgrounds. Developing an integrated system to provide adequate performance measurement complementary with the existing compliance emphasis is suggested, in order to uphold ...

The value relevance of human capital, corporate governance and intangible assets in growth enterprises: evidence from Hong Kong

This article attempts to investigate the value relevance of intangible assets, human capital and corporate governance disclosed in the Initial Public Offer (IPO) prospectuses of growth enterprises in Hong Kong. Prior studies have explored the relevance of prospectus earnings forecasts for investors and the determinants of the accuracy of such estimates. However, for enterprises that advance with dependence on new knowledge and technological innovation in emerging business sectors, recent studies have suggested the value relevance of intangible assets and other intangible factors, namely, human capital and corporate governance. The experience of growth enterprises that went through an IPO in Hong Kong provides an independent source of evidence for the exploration of the value relevance of such intangible factors. Through the analysis of the disclosed information of 214 growth enterprises, this study confirms the significance of specific components of these intangible factors and an integrative relevance of financial and nonfinancial information on Value Sustainability (VS). It argues that the regulators enforcement on adequate disclosure and accounting treatment, pertinent to the recently harmonised reporting standard to uncover the underlying fundamentals of a listing candidate, is more critical than solely pinpointing its corporate governance disclosures.

Compliance and value relevance of audit committees: evidence from Hong Kong

Purpose - Audit committees (ACs) have been perceived as an important means of corporate governance, safeguarding the interests of shareholders by monitoring internal control and risk management. This study aims to examine specific structural and operational characteristics of ACs for firms in Hong Kong, where regulators have strived to adhere to international compliance standards. Design/methodology/approach - This study is based on a cross-sectional examination of disclosures on ACs by 223 listed companies in Hong Kong. Findings - The independence and financial expertise of AC members do not enhance the value of the respective firms, despite maintaining satisfactory compliance. The discrepancy in the value relevance of ACs in prior studies is explained by the possible inadequacy of the resources available to ACs. Research limitations/implications - The data in this study are entirely from secondary sources of disclosures by listed companies for the year immediately following the implementation of the code of best practices of corporate governance. No in-depth case studies are supplemented. Practical implications - A key implication of this study to the regulators is that the proper allocation of resources to an AC should be considered beyond the independence and financial expertise of AC members to ensure the effectiveness of an AC. Originality/value - This paper is an empirical study about the practices and compliance of ACs among listed companies in a global financial centre.

Backcasting performance of the emerging renewable energy sector in China

Purpose – This paper aims to explore the use of backcasting approach in dealing with the indeterminate future performance of the emerging renewable energy sector, based on the case of China. Through backcasting analysis of the emerging sector under uncertainties and concerns of the stakeholders, it acknowledges a range of hurdles ingrained in the current energy system and issues related to technology management within the Chinese context.Design/methodology/approach – This is a conceptual paper with integration of relevant contemporary knowledge.Findings – This study points out the challenges in plausible developments for the renewable energy sector harnessing such approach. Particularly, the pursuit of end‐points under a multitude of optima can be associated with goal‐seeking embedded in backcasting for sustainable developments, whereas economic and technological constraints inherent to the processes of technological innovation in the cultural environment are recognized. Formulating an integrative framewo...

Growing Chinese organisations in the global arena: developing a performance measurement system in a state-owned enterprise

This case study aims to explore the challenges faced when developing a performance measurement system for an internationally expanding Chinese state-owned enterprise (SOE). In recent years, Chinese SOEs have gradually emerged as players in the global marketplace, making direct investments in overseas territories despite having a limited track record in multinational management. Using innovative action research, this study attempts to unveil the dilemmas in adopting a contemporary performance measurement system within an SOE. In particular, it articulates the challenges resulting from the power-centric characteristics of such an SOE when attempting to attain alignment with the diverse interests of stakeholders. We argue that the process of developing a decision facilitating and interactive performance measurement system was problematic owing to inherent factors inside the SOE. Global development of such an organisation under a transitional economy could be hindered by its tendency to remain inwardly focused and potentially misaligned interests with external stakeholders.

Developing Sustainability Competence for Future Professional Accountants: The Integrative Role of an Undergraduate Program

To instigate the conception of sustainability in education, it takes a top-down commitment from the administration of a tertiary institution as well as a bottom-up initiative stimulating interests of its faculty and students to collaborate learning proactively. This Chapter aims to develop a conceptual framework that adopts a model of knowledge development for the attraction of sustainability competence of a new generation of professional accountants. A personal knowledge management model is advocated for students of a tertiary education program to develop their explicit and tacit knowledge needed for sustainability competence. Through a case study of an undergraduate program in accountancy in Hong Kong, it highlights the integrative role of an undergraduate program that is designed with an emphasis on the ethical aspects of corporate social responsibility (CSR) and knowledge about sustainability. Standalone compulsory and elective courses integrated with a program of learning and teaching activities with involvement of students would engender a dynamic process for sustainability competence as a higher order of learning beyond the confines of vocational education. The significance of pertinent faculty research activities and transferring contemporary knowledge about sustainability with local relevance is pointed out.

Regulatory Risks and Strategic Controls in the Global Financial Centre of China

Abstract Purpose This study explores the interrelationship between regulatory risks and strategic controls within the financial supervision architecture of an emergent global financial centre of China that embraces innovation as part of its strategic objectives. Methodology/approach This paper employs a longitudinal case study approach to examine the institutional dynamics of the key financial regulators in connection with the regulated financial institutions in Hong Kong before and after the financial tsunami of 2008. Findings First, this study reveals an organic development of a specialised financial regulatory architecture that resists transforming itself structurally despite the significant impact of externalities. Second, in this post-financial crisis analysis, regulated financial institutions swiftly respond by strengthening their risk controls through compliance with the guidelines imposed by the regulator. Institutional dynamics in influencing the implementation of risk controls through a top-down interactive mechanism are observed. Such dynamic and pertinent rapid responses induce the pursuit of optimal risk management within a regulatory framework. Originality/value This paper provides a longitudinal case study to reveal regulatory risks and strategic controls of the global financial centre of China. It unveils mitigating risk control measures in the aftermath of the global financial crisis. The study demonstrates how regulatory institutions strive to take precautionary, coercive measures such that the regulated institutions mimic and implement prudent mechanisms.

Investing in the next generation of infrastructure for sustainable energy in Canada

Canadas natural endowment of abundant energy resources, both fossil fuels and renewables, provide a level of energy security and supplies that are an envy of many nations. However, corporations continue to focus on investing in Canadas infrastructure for the oil and gas export opportunities to the USA and the rest of the world. We argue that low-carbon energy resources, namely hydro, nuclear, geothermal, wind, solar and ocean energy, ought to be invested on a much larger scale to not only enhance security of supply but also to reduce the role of fossil fuels in a measured way over a 50–70 year time frame. To do so, adequate energy policy for the nation should be formulated in order to induce market financing infrastructure for sustainable energy resources to compete and export across the border.

Dynamics of Chinese emerging multinationals in cross-border mergers and acquisitions

Purpose – Chinas emerging multinationals (CEMs) have gained attention for their increasing activities in mergers and acquisitions (M&As) within the global arena. Harnessing previous studies about the significance of their cultural baggage and an underlying strategic intent in reverse technology transfer through cross‐border M&As, the purpose of this paper is to explore the dynamics of CEMs in their process of cross‐border M&As through the perspectives of intellectual capital.Design/methodology/approach – Building on an interdisciplinary literature review, a theoretical framework is devised to exemplify such dynamics within a CEM during the course of reverse technology transfer and swift transformation into a global enterprise for technological innovation through M&As. A longitudinal case study is adopted to examine how two technology‐based CEMs continue to modify and reconfigure their respective committed intellectual capital resources while undergoing cross‐border M&A transactions.Findings – The study s...