Investor legal protection and earnings management : a study of Chinese H-shares and Hong Kong shares

Under the unique "one country, two systems" arrangement, the more stringent investor protection rules in Hong Kong are not enforceable in firms that are incorporated in China but listed on the Hong Kong stock exchange (H-shares). As such, H-shares and other local Hong Kong firms are subject to different investor protection regimes in the same stock market. We find that H-shares are associated with higher earnings management than local Hong Kong firms after controlling for disparity in economic development, types of controlling shareholders and other factors. More importantly, this relationship is weaker after China implemented the Securities Law in 1999. The results are robust after considering the dual-listing status of H-shares and board characteristics. These results provide direct evidence showing the effect of investor legal protection on financial reporting quality.

The adjustment of leadership styles in intercultural workplace – some evidences from the multinational construction companies in Hong Kong

This study investigates the existence of intercultural adjustment in the multicultural construction workplaces by examining the leadership orientations (task-/people-orientation), communication and conflict resolution skills (high/low-context culture), and power relationship styles (high/low power distance) of local Chinese and the British expatriate project managers in the multinational construction companies in Hong Kong. A sample of project managers (N = 40) and their subordinates (N = 61) were surveyed using the structured questionnaires. Statistical techniques (independent-samples t-test, and Pearson correlation analysis) were employed to evaluate the data. The results revealed a number of interesting findings. First, it was found that both project manager groups equally considered the importance of task performance and interpersonal relationship. The results of correlations analysis provide support for the linkages of the length of working abroad with the change in task/people orientation for Chinese and expatriate managers. The analysis revealed that those Chinese managers who have the longest length of time living or working in Western countries tended to measure higher on task-orientation. Similarly, those British expatriate managers who have the longest period of working in Hong Kong tended to be less task-orientated. Second, local Chinese managers were found to be more confrontational when they strongly disagree with their team members than their British expatriate counterparts. It would appear that stress from project deadline which increase the directness and terseness in communication acts, and retain the composure of project managers in dealing with the subordinates. Finally, our findings show that there is significant difference between local Chinese and British expatriate managers in their power relationship with subordinates. This implies that although the intercultural adjustment might influence perceptions of local and expatriate managers, some dominant deep-rooted cultural values and beliefs are still not easily altered. Conclusions are presented along with suggestions for future studies.

Parents’ choice of early childhood education service in Hong Kong : a pilot study

The introduction of a voucher scheme for early childhood education in Hong Kong has resulted in significant changes in the field. This paper reports data from a pilot study that aimed at gaining a deeper understanding of how parents chose early childhood education service following the introduction of a voucher scheme in Hong Kong. Eight-six Chinese parents with children aged three participated in interviews and focus group discussions. This group of parents had just gone through the process of selecting a kindergarten or nursery for their child for the school year of 2007-2008. Parents from a range of socioeconomic circumstances and educational levels who had selected non-profit kindergartens and nurseries in public and private housing estates participated. Results showed that what parents looked in their choice of service matched closely with how they defined quality. As evidenced in the study, parents’ changing views on quality shared a great deal of resemblance with the specific notion of quality being heavily promoted by recent reform policy. The findings pointed to the complex interactions of policy, choice and practices of early childhood education. The new voucher scheme is intensifying the governing of the self and the field, the impact of which can be worrying.

Corporate governance for Hong Kong : conceptualizing an 'Asianized' framework

Hong Kong is a thriving cosmopolitan business capital in Asia where much of its values are shaped by both pragmatism and its Chinese heritage. Against this backdrop, Hong Kong's corporate law and governance principles are mostly British, much of which remains quite alien to the local business community. Like may other countries, Hong Kong is obligated by international markets to embrace these requirements. Yet many business operators lack even the understanding of basic company law and governance expectations, partly because the provisions are incompatible with their values and corporate cultures. The paper will argue that Confucian philosophies should be the basis for developing a corporate governance framework for Hong Kong, given that Confucius; doctrines are already entrenched in the island's traditions and identity.

Railway engineering research in Hong Kong

Railways in Hong Kong have been one of the few successful stories in the major metropolitan cities around the world, not only for their profit-making operation but also the efficiency in dealing with the astonishingly high traffic demands every day. While railway operations require a chain of delicate systems working in harmony all the time, there are numerous engineering problems arising and jeopardising the quality of services. Research in various railway engineering problems is therefore a must to tackle these problems. This paper highlights the railway research works in Hong Kong and discusses their relevance to Mainland China.

Legislative proposals to codify directors' liability for insolvent trading in Hong Kong : a 10-year journey

Hong Kong is a modern global city with a reputation for well-regulated financial markets, but for years, the government had been trying to enact laws on corporate rescue procedures with relatively little success. It is under the pretext of the Global Financial Crisis, the threat of a future economic meltdown gave the Hong Kong government the impetus to revisit this issue. This third attempt to codify statutory obligations on directors’ liability for insolvent trading has been criticised for either setting the standards too high or low for directors trading whilst insolvent. There is also some reservation given the beliefs and values of directors in Chinese family-owned and controlled companies. These companies would most likely trade out the difficult times. Nevertheless, this does not negate from the fact that the enactment of corporate rescue procedures in Hong Kong in 2010 is a momentous achievement for the Hong Kong government.

Creeping insulation - Hong Kong green wall

Hong Kong is a densely populated city suffering badly from the urban heat island effect. Green wall offers a means of ameliorating the situation but there are doubts over its suitability in Hong Kong’s unique environment. In this paper, we look at the potential for green walls in Hong Kong first by summarising some of the Chinese green walling systems and associated vegetation in use, then by an introduction to three existing green walls in Hong Kong, and finally through a small experiment aimed at identifying the likely main effects of green walled housing. The results indicate that green walling in Hong Kong is likely to provide enhanced internal house environment in terms of warm weather temperature reduction, stabilisation and damping, with direct energy savings in air-conditioning and indirect district benefits of reduced heat island effect and carbon emissions. The green walling insulation properties also suggest the possibility of warmer homes in winter and/or energy savings in mechanical heating provision.

Creeping insulation - Hong Kong green wall

Hong Kong is a densely populated city suffering badly from the urban heat island effect. Green wall offers a means of ameliorating the situation but there are doubts over its suitability in Hong Kong’s unique environment. In this paper, we look at the potential for green walls in Hong Kong first by summarizing some of the Chinese green walling systems and associated vegetation in use, then by an introduction to three existing green walls in Hong Kong, and finally through a small experiment aimed at identifying the likely main effects of green walled housing. The results indicate that green walling in Hong Kong is likely to provide enhanced internal house environment in terms of warm weather temperature reduction, stabilization and damping, with direct energy savings in air-conditioning and indirect district benefits of reduced heat island effect and carbon emissions. The green walling insulation properties also suggest the possibility of warmer homes in winter and/or energy savings in mechanical heating provision.

Curriculum and pedagogical practices in four Hong Kong kindergartens

This thesis uses a qualitative case study methodology to investigate kindergarten teachers' pedagogical practices in four Hong Kong (HK) kindergarten classrooms. It considers the transfer of early years teaching and learning approaches from Western cultural contexts to the predominantly Chinese, Confucian heritage culture, of Hong Kong. The study will be of particular interest in countries and contexts in which elements of traditional early childhood curricula are accorded different status.

A survey of perceived training differences between ophthalmology residents in Hong Kong and China.

Background: To study the differences in ophthalmology resident training between China and the Hong Kong Special Administrative Region (HKSAR).Methods: Training programs were selected from among the largest and best-known teaching hospitals. Ophthalmology residents were sent an anonymous 48-item questionnaire by mail. Work satisfaction, time allocation between training activities and volume of surgery performed were determined.Results: 50/75 residents (66.7 %) from China and 20/26 (76.9 %) from HKSAR completed the survey. Age (28.9 ± 2.5 vs. 30.2 ± 2.9 years, p = 0.15) and number of years in training (3.4 ± 1.6 vs. 2.8 ± 1.5, p = 0.19) were comparable between groups. The number of cataract procedures performed by HKSAR trainees (extra-capsular, median 80.0, quartile range: 30.0, 100.0; phacoemulsification, median: 20.0, quartile range: 0.0, 100.0) exceeded that for Chinese residents (extra-capsular: median = 0, p < 0.0001; phacoemulsification: median = 0, p < 0.0001). Chinese trainees spent more time completing medical charts (>50 % of time on charts: 62.5 % versus 5.3 %, p < 0.0001) and received less supervision (≥90 % of training supervised: 4.4 % versus 65 %, p < 0.0001). Chinese residents were more likely to feel underpaid (96.0 % vs. 31.6 %, p < 0.0001) and hoped their children would not practice medicine (69.4 % vs. 5.0 %, p = 0.0001) compared HKSAR residents.Conclusions: In this study, ophthalmology residents in China report strikingly less surgical experience and supervision, and lower satisfaction than HKSAR residents. The HKSAR model of hands-on resident training might be useful in improving the low cataract surgical rate in China.

How do consumers perceive organic food from different geographic origins? Evidence from Hong Kong and Shanghai

The objective of this paper is to understand how Chinese consumers perceive certified organic food, especially the differences between locally and nationally produced organic food compared to food produced overseas. In 2012, a consumer survey was conducted at supermarkets in Hong Kong and Shanghai (N=245). Participants were asked for their perception on four different food origins: locally produced organic food, organic food from China, imported organic food, and locally produced conventional food. Consumers in Hong Kong had a positive attitude towards local organic food and imported organic food. However, they were sceptical about organic food from China, in particular regarding chemical residues and the trustworthiness of producers. Consumers in Shanghai, in contrast, had a positive attitude towards all three tested geographical origins of organic food. Overall, the results suggest that it is challenging for marketers to promote and boost the sales of China-produced organic food in China. Better communication is essential to convince consumers that organic food from China is of similar quality as organic food produced elsewhere.

Verbal hygiene in the Hong Kong gay community

This paper explores the status and function of English among gay men in Hong Kong through the analysis of postings about English on a popular gay internet forum. The forum, gayhk.com, while mainly featuring discussions about sex, fashion, entertainment and relationships, also contains a surprising amount of discussion about the English language, mostly taking the form of what Cameron refers to as ‘verbal hygiene’ – the enforcement of language ‘standards’ through the criticism of the language use of particular individuals or groups. The analysis of these postings sees them not just as evidence of language attitudes within the gay community, but also as tools with which Chinese gay men in postcolonial Hong Kong position themselves in relation to one another, in relation to ‘foreign’ gay men, and in relation to the wider population of Hong Kong.

Two Faces of AIDS in Hong Kong: Culture and the Construction of the `AIDS Celebrity'

Since the first reported case of HIV infection in Hong Kong in 1985, only two HIV-positive individuals in the territory have voluntarily made public their seropositivity: a British dentist named Mike Sinclair, who disclosed his condition to the media in 1992 and died in 1995, and J.J. Chan, a local Chinese disc-jockey, who came forward in 1995 and died just a few months later. When they made their revelations, both became instant media personalities and were invited by the Hong Kong Government to act as spokespeople for AIDS awareness and prevention. Mike Sinclair worked as an education officer for the Hong Kong AIDS Foundation, and J.J. Chan appeared in Government television commercials about AIDS. This article explores how the public identities of these two figures were constructed in the cultural context of Hong Kong where both Eastern and Western values exist side by side and interact. It argues that the construction of `AIDS celebrities' is a kind of `identity project' negotiated among the players involved: the media, the Government, the public, and the person with AIDS (PWA) himself, each bringing to the construction their own `theories' regarding the self and communication. When the players in the construction hold shared assumptions about the nature of the self and the role of communication in enacting it, harmonious discourses arise, but when cultural models among the players differ, contradictory or ambiguous constructions result. The effect of culture on the way `AIDS celebrities' are constructed has implications for the way societies view the issue of AIDS and treat those who have it. It also helps reveal possible sites of difficulty when individuals of different cultures communicate about the issue.

The movement ABC: a cross-cultural comparison of preschool children from Hong Kong, Taiwan and the USA

The purpose of this study was to evaluate the suitability of the Movement Assessment Battery for Children (M-ABC) for use in Greater China. Chinese children numbering 255 between the ages of 4 and 6 from Hong Kong and 544 from Taiwan were tested individually on the standardized test contained within the M-ABC. Data from these 799 children were compared to that presented in the test manual for the 493 children of the same age comprising the United States standardization sample. Both within-culture and cross-cultural differences were statistically significant when all items of the M-ABC were examined simultaneously, but effect sizes were too low to be considered meaningful. However, descriptive analysis of the cut-off scores used for impairment detection on the test suggested that adjustments to some items would be desirable for these particular Chinese populations.