BOND market, BONDS (Finance), MONEY, CAPITAL market
Abstract
This paper discusses and examines the development of an Asian bond market, which serves as a bridge to establish financial cooperation in the region. The issues of currency denomination are discussed. In addition, the role that China may play in the establishment of the bond market is presented and analyzed. It is argued that cooperation between China and Hong Kong is desirable to further enhance the development of the market. [ABSTRACT FROM AUTHOR]
FINANCIAL statements, STOCK exchanges, PUBLIC officers, EARNINGS management, CORPORATE governance
Abstract
This paper investigates fraudulent financial reporting (FFR) in the China-based companies listed on the Hong Kong Stock Exchange (called H shares) in which Chinese government officials have a high degree of involvement and heavy impact on audit quality and corporate governance. It intends to find out the causes of FFR, the opportunities that make such reporting possible, and whether the presence of politically connected executives creates an environment that is conducive to FFR. The results show that the corporate environment most likely to lead to FFR is characterized by earnings management accounting practices. [ABSTRACT FROM AUTHOR]
Revenue volatility poses challenges for fiscal policy makers. It can create risks to service provision, require borrowing, or entail sudden tax changes. This paper investigates the use of value-at-risk techniques to measure the fiscal risks caused by volatility as well as the sensitivity of measured risks to policies that may limit volatility. The revenue of Hong Kong's Special Administrative Region (SAR) is among the most volatile in Asia, and thus is a natural case for applying these techniques. Reflecting its revenue volatility, Hong Kong's SAR has traditionally held high fiscal savings (reserves), and the value of the self-insurance these savings provide is also discussed. [ABSTRACT FROM AUTHOR]
This study seeks to examine whether being listed as a particular type of share (H share, red-chip stock, Taiwan-based stock, or Hong Kong local stock) on the main board of the Hong Kong Exchange will affect the idiosyncratic risks and market risks. The findings are as follows: (1) different political connections mainly affect idiosyncratic risk, (2) the hypothesis of big size with high market risk is supported, (3) the idiosyncratic risks of all the companies in each category taken by category are negatively correlated with expected short-run returns. These results mean that investors should hold the stocks with previous low idiosyncratic risk to earn high expected returns. [ABSTRACT FROM AUTHOR]