News Article | February 28, 2017
HONG KONG, CHINA--(Marketwired - Feb 28, 2017) - The following article was first published in the China Business Knowledge (CBK) website by CUHK Business School -- https://goo.gl/X6UkJr: Research in sociology and psychology tells us that beauty can have a significant impact on people's earning, job opportunities and career success and that attractive individuals generally receive better treatments in the workplace and other social settings. In the working paper "More than Skin-deep? Analysts' Beauty and Their Performance", Prof. George Yang, Associate Professor at the School of Accountancy of The Chinese University of Hong Kong (CUHK) Business School, extends the study to information acquisition and forecast performance in China's capital market. It reveals that the attractiveness of financial analysts is positively associated with their earnings forecast accuracy and stock recommendation informativeness. "Our study aims to look at whether a predetermined attribute of a financial analyst, namely, their physical attractiveness, affects his or her success in information acquisition and job performance," says Prof. Yang who works on the study in collaboration with Prof. Ying Cao, Associate Professor of the School of Accountancy of CUHK Business School, Prof. Feng Guan of Shanghai Lixin University of Commerce, as well as Prof. Zengquan Li, Dean of the School of Accountancy at Shanghai University of Finance and Economics. In capital markets, sell-side financial analysts who are generally employed by broker-dealers and investment banks, play an important role in disseminating the information on particular securities or stocks, giving investors the necessary information they need to judge the attractiveness of certain investments. "In China, the influence of financial analysts on the stock market is even greater because the market is dominated by retail investors who are more likely to be influenced by the so-called expert opinions than institutional investors," says Prof. Yang. Therefore, the financial analysts would actively seek out information from various sources, and the private communication with firm management is one of the critical sources, being viewed as more useful to their earnings forecasts and stock recommendations than firms' public disclosure and even their own primary research. Prior research already reveals that analysts who cater to the interests of managers enjoy an information advantage and exhibit superior forecast performance, according to researchers. The Study In the study, the researchers studied a sample of 89,056 earnings forecasts made by 2,328 analysts from 2005 to 2014. The analysts in their sample come from 102 unique brokerages, which cover all the largest brokerages in China. At the same time, they downloaded the head-to-shoulder ID photos of all sell-side financial analysts in the sample from the website of the Securities Association of China and asked 63 raters with different education background, occupation, income, and social experience to score them on a five-point scale: 1 for homely or not good looking; 2 for below average; 3 for average; 4 for above average and; 5 for strikingly beautiful or handsome. The 63 raters were from different settings including a Big Four accounting firm, a brokerage firm, a large private company, as well as university faculty members and students. Of the group, 27 of them are males while the rest are females. All the raters were reminded to use the common people in the Chinese population, not the sample analysts, as the benchmark for rating and that age should not be considered in rating. Hence, the rating score would be solely based on attractiveness, not depending on how young or old he or she looks. Lookism Matters As expected, the study reveals that the beauty ratings of financial analysts are significantly negatively associated with their forecast errors. That is to say, more attractive analysts make more accurate forecasts. The research team points out that their evidence suggests that more attractive financial analysts possess an advantage in acquiring information from firm management. "Compared with other analysts, attractive analysts are more likely to gain advance access to information about pending significant corporate events, and they are more likely to issue a stock recommendation in the quarter prior to the public announcement of three types of corporate news, including restructuring, signing of important business contracts and earning warning. Accordingly, they can produce more informative stock recommendations," says Prof. Yang. When it comes to information access, it is important to go to the right people. Again, attractive analysts have better access to them. "Attractive analysts are more likely to get more information from corporate site visits when they can directly interact with firm management. Our results show that firm managers are more likely to disclose information to those attractive analysts," he says. Taste-Driven Discrimination However, what's interesting is that the study also shows that the beauty effect disappears when managers are allowed to trade their shares in the open market or when their firm is under a share pledge agreement. To explore the reason behind, Prof. Yang went on to find out if the effect was attributed to managers' taste-based discrimination on the attractiveness of the analysts or on the notion that attractive people possess superior job-related skills and can better serve the interests of the firm. If managers believe that more attractive analysts are more capable and valuable to firms, the beauty effect would persist when there is a strong incentive for managers to boost the firm performance and increase the stock value. But, the researchers didn't find such evidence in the study. "In other words, it suggests that managers' discrimination among financial analysts is just taste-driven," Prof. Yang comments. "When managers need to rely more on analysts to inform and guide the market, they are less likely to allow their taste for beauty to sway the decision about which analysts to rely on for disseminating firm information," he explains. Apart from the relation between analysts' attractiveness level and their forecast performance, the study also demonstrates the impact of analysts' attractiveness on their career opportunities. Specifically, it finds that a more attractive analyst is more likely to be voted as a star analyst who is more likely to be hired by top-notch brokerage firms even if, for some reason, he or she could only get into a smaller firm initially. A New Challenge While social science has documented and extensively studied the beauty effect, this study provides a new perspective into the practice by financial analysts in capital markets. Unlike in previous research suggesting that analysts who issue favorable opinions would obtain more information from firm management, the current study documents a different incentive -- the indulgence of managers' taste for beauty, which affects the interaction between managers and financial analysts. "Since this form of discrimination originates from psychological and social bias and is difficult to regulate, it brings new challenges to regulators and practitioners in the industry," Prof. Yang says. Reference Ying Cao, Feng Guan, Zengquan Li and Yong George Yang, "More than Skin-deep? Analysts' Beauty and Their Performance", 2016. Working paper. This article was first published in the China Business Knowledge (CBK) website by CUHK Business School: https://goo.gl/X6UkJr. About CUHK Business School CUHK Business School comprises two schools -- Accountancy and Hotel and Tourism Management -- and four departments -- Decision Sciences and Managerial Economics, Finance, Management and Marketing. Established in Hong Kong in 1963, it is the first business school to offer BBA, MBA and Executive MBA programs in the region. Today, the School offers 8 undergraduate programs and 13 graduate programs including MBA, EMBA, Master, MSc, MPhil and PhD. In the Financial Times Global MBA Ranking 2017, CUHK MBA is ranked 36th. In FT's 2016 EMBA ranking, CUHK EMBA is ranked 37th in the world. CUHK Business School has the largest number of business alumni (32,000+) in Hong Kong - many of whom are key business leaders. The School currently has about 4,400 undergraduate and postgraduate students and Professor Kalok Chan is the Dean of CUHK Business School. More information is available at: http://www.bschool.cuhk.edu.hk or by connecting with CUHK Business School on Facebook: http://www.facebook.com/cuhkbschool and LinkedIn: http://www.linkedin.com/company/cuhk-business-school. About China Business Knowledge (CBK) CBK is a portal belonging to the Chinese University of Hong Kong (CUHK) Business School which provides easy access to the China-related research conducted at CUHK Business School. Through feature articles, mini case studies, discussions and a research paper database, CBK aim to narrow the knowledge gap between China and the rest of the world, providing in-depth knowledge and practical tips about doing business in China. Free content is available at http://www.bschool.cuhk.edu.hk/faculty/cbk/index.aspx or by connecting with CBK@CUHK on Facebook: http://www.facebook.com/CBKCUHK, Twitter: https://twitter.com/CBK_CUHK and LinkedIn: http://linkd.in/1B8cGdU.
Al-Shboul M.,University of Sharjah |
Anwar S.,Shanghai Lixin University of Commerce
International Journal of Tourism Research | Year: 2017
Using nonparametric, semiparametric, and parametric estimation techniques, this paper investigates the presence of long memory in tourist arrivals to Singapore from 11 countries and 4 geographical regions. Empirical analysis of the monthly data from 1978 to 2012 shows that tourist arrivals to Singapore from all countries and regions are subject to long memory behavior. Analysis of the impulse response functions derived from an autoregressive fractionally integrated moving average model shows evidence of persistence in tourist arrivals. Our analysis suggests that visitors consider Singapore as a long-term tourism destination and like to return to Singapore to relive their experiences. © 2017 John Wiley & Sons, Ltd.
Sun S.,James Cook University |
Anwar S.,University of The Sunshine Coast |
Anwar S.,Shanghai Lixin University of Commerce
Energy Policy | Year: 2015
Coal use accounts for a very large proportion of electricity production in China. Using a recently developed coarsened exact matching (CEM) technique, this paper examines the impact of research and development (R&D) activities on the performance of firms in China's coal mining industry. Our empirical results reveal that firms in China's coal industry that conduct R&D are more productive and their sales are higher. However, as far as the firm profitability and market shares are concerned, whether or not a firm in China's coal industry conducts R&D makes no difference. We find that foreign direct investment in China's coal mining industry leads to a significant decrease in the market share of domestic firms and its impact on productivity, sales and profitability of domestic firms is insignificant. The empirical results presented in this paper suggest that policies that encourage domestic firms in China's coal mining industries to conduct R&D can increase domestic production thereby reducing reliance on imports. Furthermore, productivity gains arising from R&D activities can also help Chinese mining firms to improve their competitive position in the international market. However, there is a need for restricting foreign direct investment in China's coal mining industry. © 2015 Elsevier Ltd.
Bai L.,Shanghai Lixin University of Commerce |
Liu M.,Tongji University
Computers and Mathematics with Applications | Year: 2011
Semantic Web Services (SWS) were introduced to facilitate the publication, discovery, and execution of web services. A semantic matchmaker enhances the capability of UDDI service registries in the SWS architecture and it is able to recognize various degrees of matching for web services. On the basis of SWS and fuzzy-set theory, a fuzzy matching approach for semantic web services is proposed, to support a more automated and veracious service discovery process. © 2010 Elsevier Ltd. All rights reserved.
Wang P.,Shanghai Lixin University of Commerce
Expert Systems with Applications | Year: 2011
This paper presents an efficient currency option pricing model based on support vector regression (SVR). This model focuses on selection of input variables of SVR. We apply stochastic volatility model with jumps to SVR in order to account for sudden big changes in exchange rate volatility. We use forward exchange rate as the input variable of SVR, since forward exchange rate takes interest rates of a basket of currencies into account. Therefore, the inputs of SVR will include moneyness (spot rate/strike price), forward exchange rate, volatility of the spot rate, domestic risk-free simple interest rate, and the time to maturity. Extensive experimental studies demonstrate the ability of new model to improve forecast accuracy. © 2010 Elsevier Ltd. All rights reserved.
Wang F.,Shanghai Lixin University of Commerce
Proceedings of the 2011 Chinese Control and Decision Conference, CCDC 2011 | Year: 2011
The current mass customization(MC) generally has single or multi fixed CODP for the mass production and customization. However, this mode can not be suitable for the changeful sales market and the customers' needs. Based on pointing out the limits of current mass customization system, a kind of new mass customization system named Mass Customization System based on Multi-CODPs is proposed. In this kind mode of mass customization, the CODP is multiple and dynamic following the changes of customized products. The paper presents an idea of product mixes for the new system with the deeply analysis of the process, production lot and customer order attributes of the products in the supply chain, and analyzes the key problems to implement the new mass customization and further researches. © 2011 IEEE.
Liuy Y.,Shanghai Lixin University of Commerce
Discrete Mathematics and Theoretical Computer Science | Year: 2010
Connected graphs in which any two of its cycles have at most one common vertex are called cactuses. In this paper, we continue the work on Laplacian spread of graphs, and determine the graph with maximal Laplacian spread in all cactuses with n vertices. © 2010 Discrete Mathematics and Theoretical Computer Science (DMTCS).
Wang W.,Jiaxing University |
Wang L.,Jiaxing University |
Chen W.,Shanghai Lixin University of Commerce
Nonlinear Analysis: Real World Applications | Year: 2011
In this paper, we study the existence and exponential convergence of positive almost periodic solutions for a class of Nicholson-type delay system. Under proper conditions, we establish some criteria to ensure that the solutions of this system converge locally exponentially to a positive almost periodic solution. Moreover, we give an example to illustrate our main results. © 2011 Elsevier Ltd. All rights reserved.
Zhang Y.,Shanghai Lixin University of Commerce
Proceedings - 2012 International Conference on Computer Science and Electronics Engineering, ICCSEE 2012 | Year: 2012
This paper, through the literature on carbon emissions trading and the related pricing decision theory, first analyzes the pricing decision principles in the two carbon emissions trading systems, namely, cap and trade and baseline and credit approach; the optimal state for the production and emissions reduction of an enterprise in the context of sufficient market competition is achieved when the marginal emission reduction cost equals the market price of the emission right. Moreover, by referring to relevant researches and based on the equilibrium price at which the marginal emission reduction cost equals the market price of the emission right, the international carbon emissions trading scale in the framework of Kyoto Protocol as well as the unfair benefit allocation is analyzed. Since the developed countries dominate the pricing rights for international carbon emissions trading, from which considerable benefits is gained, there is a necessity for the developing countries to make reasonable assessment and long-term planning in order to avoid the waste of resources resulted from the export at a low price. © 2012 IEEE.
Yu H.,Shanghai Lixin University of Commerce
International Journal of Computer Mathematics | Year: 2015
In this paper, we propose a new reformulation for stochastic complementarity problems (SCPs). The new formulation is based on the minimum mean-squared deviation rule in statistics. Under mild conditions, we prove the existence of the solution of the new reformulation for SCP. Furthermore, we present a smoothing sample average approximation method for solving the problems. The convergence properties of the optimal solutions of the approximation problems are studied under mild conditions. Finally, some numerical results are listed as well. © 2015 Taylor & Francis