Mong Shan Ee

Asset-selling problem with an uncertain deadline, quitting offer, and search skipping option

This paper presents a discrete-time sequential stochastic asset-selling problem with an infinite planning horizon, where the process of selling the asset may reach a deadline at any point in time with a probability. It is assumed that a quitting offer is available at every point in time and search skipping is permitted. Thus, decisions must be made as to whether or not to accept the quitting offer, to accept an appearing buyers offer, and to conduct a search for a buyer. The main purpose of this paper is to clarify the properties of the optimal decision rules in relation to the models parameters.

Corporate governance and quality of forward-looking information: Evidence from the Chinese stock market

Purpose - – The purpose of this paper is to investigate the association between corporate governance mechanisms and quality of forward-looking information in the Chinese stock market which presents a mandatory disclosure environment for forward-looking information. Design/methodology/approach - – Using sales forecasts to proxy forward-looking information and using precision and accuracy to measure the quality of information disclosure, the authors investigate the impact of corporate governance attributes on the precision and accuracy of sales forecasts made by listed Chinese firms in their 2010 annual reports, using logistics and ordinary least squares regressions. Findings - – The authors find good corporate governance has a positive and significant impact on the precision choice of sales forecasts disclosure. Firms with good corporate governance are more likely to disclose more precise sales forecasts than providing qualitative discussions on firms’ sales trend. In addition, good corporate governed firms are found more likely to provide precise non-financial information. The authors also find that good corporate governance is positively associated with making more conservative sales forecasts disclosure. However, the authors find no significant relationship between good corporate governance and smaller forecast error. Research limitations/implications - – The study makes significant contributions to corporate disclosure literature. The authors investigate the determinants of the quality of forward-looking information in a mandatory disclosure regime while most forward-looking information disclosure literature have been conducted in a voluntary-based disclosure environment. The authors examine whether in a mandatory disclosure regime, corporate governance mechanisms can play a positive role in precision choices and accuracy of forward-looking information. Further, the study is the first to examine corporate governance and the quality of non-financial forward-looking information (sales target and production goal). The research findings therefore extend forward-looking information disclosure research from financial information to non-financial information. Practical implications - – The empirical findings will provide regulators with evidence on the quality of forward-looking information in a mandatory disclosure regime and the influence of corporate governance on forward-looking disclosure. The properties of forward-looking information disclosure in China should be of interest to policy makers, investors and financial analysts in other international jurisdictions. Originality/value - – The study investigates forward-looking information in a mandatory disclosure regime while most extant forward-looking information studies have been conducted in a voluntary disclosure environment. The study is the first to examine the quality of non-financial forward-looking information such as operational goals and plans, and to investigate the association between the quality of non-financial forward-looking information and corporate governance mechanisms. The research findings extend forward-looking information disclosure research from quantitative financial information to quantitative non-financial information.

Public Firms Merger, Employment and Welfare in Developing Countries: A General Equilibrium Analysis

This paper examines the effect of a merger of state†owned firms on wage gap, employment, and social welfare in a general equilibrium setting. For a developing economy with state†owned firms in the urban sector, a merger via a reduction in the number of the urban state†owned firms can reduce the cost of capital. It then lowers the skilled wage rate through the factor†substitution effect, while it raises the unskilled wage by the inflow of capital to the rural sector and hence lowers urban unemployment. In addition, the reduction in the number of the urban state†owned firms can yield a scale effect to the firms. The beneficial effects on higher urban output and less urban unemployment can improve social welfare of the developing economy.

The Last Alibi: Shari'ah Compliant Stocks on Momentum Profitability Assessment

Abstract Purpose Ever since the publication of the original Jegadeesh and Titman (1993) study, momentum effect has been tested vigorously to validate its pervasiveness for different time periods and across different markets. In spite of numerous out-of-sample tests, there is one apparent alibi – little research has been devised for steady increasing of Shari’ah compliant stocks. Methodology/approach This study is to examine the momentum strategy returns in a global Shari’ah compliant stock setting. Findings It finds strong presence of stock momentum returns for Pakistan and Malaysia. And the momentum returns are neither driven by industry momentum nor by the small size stocks. Though no momentum profits are found for the portfolios formed by global Shari’ah compliant stocks, this seems to be largely due to return reversal for the small size Shari’ah compliant stocks. Originality/value The strong presence of momentum profits for relatively large Shari’ah compliant stocks is a desirable trait as it indicates that the momentum trading strategies are practical and implementable.

Supporting business intelligence usage: an integrated framework with automatic weighting

ABSTRACT This paper presents an integrated framework that comprises an automatic weighting method for assessing data quality (DQ) of the framework so as to better support the business intelligence (BI) usage. Specifically, we utilize business process modeling (BPM) notation and information product map and frame them into a hierarchical mapping structure. Furthermore, we develop and demonstrate an automatic weight-assignment method for evaluating critical dimensions (i.e., completeness and accuracy) of DQ of the integrated framework. Through a design science paradigm, the effectiveness of the framework and the associated DQ weighting method has been rigorously validated by faculty management users of a university. The framework together with the DQ weighting method builds user confidence by enhancing the traceability of a BI product. The automatic DQ weight assignment also provides better time efficiency because the weight of each data attribute is determined automatically based on its usage on the BI dashboard.

Quality-Based SQL: Specifying Information Quality in Relational Database Queries

A Structured Query Language extension uses an estimator module to evaluate quality profiles that rate the accuracy and completeness of query results. Users receive information that matches their defined quality constraints and better serves their data needs.

Urban Development, Excessive Entry of Firms and Wage Inequality in Developing Countries

We examine the short- and long-term effects of urbanization, via favorable urban development policies, on income distribution and social welfare for a developing country. The urban manufacturing sector is characterized by imperfect competition and free entry. Urbanization shifts rural workers to the highly productive urban sector, while causing production in urban firms to expand because of scale economies. However, urbanization may worsen wage inequality between skilled and unskilled labor in the short term. In the long term, urbanization can attract new firms to the urban sector, and favorable urban development policies may result in excessive entry of firms, which can amplify wage inequality in the economy. This entry-amplifying effect is confirmed empirically, especially for low- and lower-middle-income countries. If the entry effect is not considered, the impact of urbanization on wage inequality could be understated by 18% for low- and lower-middle-income countries.

Does medical tourism promote economic growth? A cross-country analysis

In recent years, many countries have been actively promoting medical tourism to stimulate economic growth. However, the expansion of medical tourism has potentially detrimental effects for the welfare of host countries. In particular, a decline in workers’ productivity could arise as a result of a reduction in public health care provision due to the expansion of the medical tourism sector. By addressing the crowding-out effect on labor productivity, this paper sheds light on the economic impacts of medical tourism on host countries. Our empirical analysis confirms that medical tourism, on average, has a positive effect on host economies’ output growth, particularly in non-OECD countries. Nonetheless, the output contribution of medical tourism is overestimated by an average of 26.8% if the unfavorable indirect productivity effect is not taken into account.