• Volume 14,Issue 8,2011 Table of Contents
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    • Evolving network model of integrating three mechanisms: Node otherness, uniform node deletion and double preferential attachment

      2011, 14(8):1-16.

      Abstract (245) HTML (0) PDF 586.14 K (1508) Comment (0) Favorites

      Abstract:The researches on the complex evolving network models have been researched separately based on the mechanisms of node otherness,uniform node deletion or double preferential attachment ( DPA) . Neverthe-less,these three mechanisms of evolving network exist simultaneously in the real network. This paper estab-lished an evolving network model by integrating the three mechanisms. The article performed analytic deduc-tions,calculated the degree distribution,and generalized the scale-free model. Finally,the results show that the comprehensive model has the scale-free feature,and the three evolving mechanisms have different influ-ences on the degree distribution of networks,which were also validated by simulations.

    • Analysis of outsourcing decision-making on used products collection for green remanufacturing

      2011, 14(8):8-16.

      Abstract (257) HTML (0) PDF 609.22 K (1429) Comment (0) Favorites

      Abstract:Outsourcing will be helpful for manufacturers to reduce collecting cost of used products and to im-prove the flexibility of remanufacturing. This paper presents outsourcing decision-making models of used prod-ucts collection with and without incentive contracts based on game theory. Critical outsourcing cost is derived to make outsourcing decisions of collecting waste products. The effects of the unit cost savings of remanufactur-ing products on the wholesale price,retail price,returns rate,manufacturer’s profit and critical outsourcing costs are compared with examples applied to the two models,and we find that outsourcing collection of waste products with incentive contracts is useful to increase the returns rate and improve the manufacturers' benefit.

    • Research on customer churn detainment in telecom based on rival counterattack and customer detainment value maximization

      2011, 14(8):17-33.

      Abstract (153) HTML (0) PDF 676.53 K (1539) Comment (0) Favorites

      Abstract:Firstly,a dynamic mechanism affected by four effects,which are the detainment excitation effect, the natural bleeding effect and the word-of-mouth effect is analyzed,and the evolution route of customer reten-tion rate in customer detainment cycle is obtained; secondly,four coefficients influencing customer retention rate are proposed,which describe the effects above,including detainment excitation coefficient,competition counterattack coefficient,natural attenuation quotient and word-of-mouth influence coefficient; thirdly,customer detainment cycle is obtained based on the evolution route of customer retention rate,and customer detainment value models are established under three circumstances depending on whether the competition counterattack effect exists or not; finally,a customer detainment cost evaluation model based on customer detainment value and customer detainment cost is established,meanwhile,a customer detainment ranking model based on the importance of detainment is built. The experiments results suggest that the customer churn de-tainment method put forward in this paper is feasible and very efficient.

    • Ownership concentration,tunneling,and managerial entrenchment

      2011, 14(8):34-44.

      Abstract (304) HTML (0) PDF 403.36 K (3109) Comment (0) Favorites

      Abstract:In this paper,we frame two theoretical models in concentrated ownership environments to study the determinants on tunneling and managerial entrenchment. We find that: ( 1) When there are only agency prob-lems between controlling shareholder and minority shareholders in a firm,better investment opportunities, higher legal investor protection,and higher ownership by controlling shareholder will result in less tunneling.( 2) When there are dual principal-agent problems in a firm,better knowledgeable of controlling shareholder higher legal investor protection,and higher ownership by controlling shareholder will result in lower probability and lower extent of tunneling. ( 3) When there are dual principal-agent problems in a firm,better investment opportunities,higher legal investor protection,and higher pay-performance sensitivity will result in lower prob-ability and lower extent of managerial entrenchment.

    • Impact of auditing embedded in incentive compensation on internal capital market efficiency

      2011, 14(8):45-53+96.

      Abstract (206) HTML (0) PDF 452.79 K (1152) Comment (0) Favorites

      Abstract:Internal capital market allocation efficiency depends on the effectiveness of internal capital allocation decisions. Based on the standard real options model,we construct an internal capital allocation decisions model and emphasize that internal auditing plays an important role in internal capital allocation decisions. Our results suggest that CEO compensation incentives can be effective in ameliorating inefficiencies in internal cap-ital allocation decisions. However,we cannot help but achieving suboptimal result which is a trade-off between rent extraction and allocation efficiency. Thus,it is necessary to embed auditing into compensation in-centives to bind them. We find that managerial auditing is better than financial auditing in improving efficiency. Finally,we verify the results of our model with an example of Nanjing P Group.

    • Research on volatility persistence of vector MRS-GARCH model

      2011, 14(8):54-64.

      Abstract (180) HTML (0) PDF 417.04 K (1981) Comment (0) Favorites

      Abstract:In order to describe the volatility relationship in the different stages between financial variables,this paper introduces markov conversion mechanism into vector GARCH model to construct the vector MRS-GARCH model. The paper derives aparameter estimation method of this model with filtering technology,then studies the persistence of the vector process based on the prediction equation. Next this article explores the persistence of vector MRS-GARCH model from two aspects of the state duration time and the persistent of vector GARCH process with markov chain,then puts forward exponential decay rate of the vector MRS-GARCH. Afterward,the theorem that satisfied coordination of persistent of vector MRS-GARCH process is given and proved,which can analyze the specific association of financial variables at different stages,and derive the re-gime-swithing linkages between various financial variables. In the end,this essay uses the vector MRS-GARCH model to empirically research on Shanghai and Shenzhen stock yield rates,then confirmes that the two stock markets exizsted co-peresitence after considering state transition.

    • Assets pricing under economic time

      2011, 14(8):65-74.

      Abstract (161) HTML (0) PDF 388.87 K (1230) Comment (0) Favorites

      Abstract:Economic systems may not evolve evenly in calendar time. So come economic time and time de-formation. Although subordination is the most important mathematical method for time deformation,there is a deficiency in the definition. Because it requires that the stochastic time process and the latent process should be independent. It’s constraining in practice,because the processes often correlate in this way or that way. In order to model such cases,a new concept of dependent-subordination is proposed here. It generalizes subordination from independence to dependence and can be applied in many circumstances,for example,it can be ap-plied to prices and volumes. In early studies,researchers always choose volume as a stochastic time for price. But now we know that price isn’t independent of volume and they are correlated. So,choosing volume as a stochastic time for price isn’t appropriate in subordination. But,with the definition of dependent-subordina-tion,volume can be a stochastic time for price. This coincides with the idea that price changes may really be driven by volumes. Next,diffusion properties of dependent-subordination are presented. Finally,assets pri-cing under economic time is discussed as an application of dependent-subordination. Results are similar to ordinary calendar ones of CAPM and APT.

    • Cash flow balanced project scheduling optimization based on different pay- ment conditions

      2011, 14(8):75-85.

      Abstract (197) HTML (0) PDF 640.21 K (1298) Comment (0) Favorites

      Abstract:Taking cash flow balance as the objective,this paper studies the project scheduling problem under different payment conditions. Based on the identification of the studied problem,the authors construct the optimization model under the milestone event payment condition and then extend it to the cumulative time,cumu-lative earned value,and cumulative expense payment conditions. Because of the strong NP-hardness of the problem,a tabu search heuristic algorithm is developed. The algorithm is tested and compared with other two heuristic algorithms on a data set generated randomly. Ultimately,an example is used to illustrate the method and the influences of the payment conditions on the objective of cash flow balance are analyzed. The conclusions are as follows: Payment conditions may exert an important influence on cash flow balance,and with the increase of payment number,payment proportion,and project deadline,it becomes easier for contractor to balance cash outflows and inflows.

    • Analysis on the pricing mechanism of public-private partnership project with different market demand level

      2011, 14(8):88-96.

      Abstract (237) HTML (0) PDF 489.13 K (1599) Comment (0) Favorites

      Abstract:This paper analyzed the pricing mechanism in the supply of public goods,based on defining the calculation of social welfare which considered part of producer surplus in the operation of PPP project under the guidance of government,and classifying the public goods market into three states i. e. ,the high,middle and low demand needs. By analyzing the different allocations of pricing right between public and private sectors, and then maximizing the different benefits individually by public and private sectors,it derives the pricing mechanism and the different impacts of related parameters on it under three different demand states,examined the relationship between the interval of price regulation by government and the cost in the operation of public-private partnership projects,and also find the different correlations between the pricing and the demand elastics of public goods in different market demand levels,so as to bring forward some suggestions for pricing of public goods in the practice of PPP projects.

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