Geography and the Future of Stock Exchanges: Between Real and Virtual Space

ABSTRACT This paper aims to contribute to the debate on the future of stock exchanges and financial centres by focusing on two questions. First, whether, how, why, and which stock exchange activities are prone to concentration in financial centres? Second, are they prone to concentration in national or international financial centres? Through a detail‐rich analysis of stock exchange activities, including trading system, as well as relationships with members, issuers, and investors, the paper suggests a framework for the geography of stock exchange activities based on two dimensions—proneness to concentration in a financial centre and proneness to international consolidation. With this framework, predictions are made about the future geography of stock exchange activities led by the argument that while significant geographical reconfigurations are likely to unfold, driven primarily by the development of international networks of stock market institutions, stock exchanges, and financial centres will remain crucially important for each other.     

Mobile Marketplaces—Consequences of the Changing Governance of European Stock Exchanges

ABSTRACT Deregulation and increasing cross‐border competition in the financial industry are affecting not only firms but also those organisations that provide markets, i.e., stock exchanges. The process of changing governance structures is exemplified in this paper by the case of Deutsche Börse AG, the Frankfurt‐based main German stock exchange. The paper focuses on the reasons for relocations of national stock exchanges, and possible consequences for local firms. Secondary trading is based mainly on the exchange of (price) information, so traders were able to move away from the Frankfurt floor quite easily. However, many of them gathered together in London because of the knowledge‐intensive communications between them, e.g., interpretations of rumours, market mood, etc. On the other hand, the primary markets—firms issuing new shares—are also based on the exchange of tacit knowledge. With two spatially separated groups of users, traders in London in the secondary markets and firms in Germany in the primary market, Deutsche Börse faces a “user‐producer interface dilemma.” Thus, a possible relocation of executive functions to London combined with the complex interplay between information and knowledge exchange in financial markets could have negative consequences for the financing conditions of local firms.     

Evolutionary Economic Geography for OFCs: Do Political Ties to the Onshore Reduce Capital Inflow Volatility?

This paper analyses the structural change in small‐island economies—sometimes labeled offshore financial centers (OFCs)—that have seen wealth‐generating activities through offshore financial services decrease in value since 2008. At the same time, OFCs have come under increasing scrutiny from supranational organizations such Organization for Economic Co‐operation and Development and European Union for perceived unfair tax practices and money laundering activities. Some OFCs have proactively adjusted to this sea change by broadening the economic base through development of new offshore business activities such as e‐gaming, film industry, and niche manufacturing. Most have increased co‐operation with onshore regulatory bodies to promote service and product legitimacy. Econometric analysis explores the assertion that OFCs that do not have a political link to the onshore may be exposed to greater capital inflows volatility than OFCs that have such a link. Case study analysis using the theoretical lens of evolutionary economic geography illustrates that a small OFC is creating spatialities of economic novelty by adapting economic development strategies deployed during the successful development of the center prior to the recent recession. Our findings reveal the importance of political links to the onshore to reduce capital inflow volatility and the importance of local public–private interaction to legitimize post‐recession development.     

上市公司财务竞争力评价研究——以医药、生物制品业上市公司为例

财务竞争力是企业竞争力的核心与关键。对企业的财务竞争力进行评价,有利于了解自身财务竞争力水平和存在的缺陷与不足,进而采取措施完善企业财务状况。医药、生物制品业是现代科学中发展最快、最活跃、取得成果最多的一个行业。以114家医药、生物制品业上市公司为研究对象,运用因子分析法对其财务竞争力进行实证分析,构建评价体系,对其财务竞争力进行评价,结果发现行业内企业资产管理能力强弱各占一半,偿债能力和发展能力普遍偏弱,整体财务竞争力有待加强。应提高整体偿债能力,提升现金获取能力及应收账款周转能力,优化资本结构,增强研发能力,以实现可持续发展。     

Shadow Europe: Alternative European Financial Geographies

ABSTRACT This paper sets out to trace some major points of convergence between an emerging literature on the political geographies of corruption¹ and current attempts to develop a renewed research agenda in the geographies of global finance—in this case in a specifically European context. In particular, we offer some preliminary observations on the need to elaborate an alternative geography of Europe's financial architecture that could incorporate the role of flows of illegal and informal finance as major driving forces behind the way in which that architecture currently constitutes itself. This is an inherently complex task due to the intrinsically hidden nature of these flows and the difficulties involved in their accurate measurement; nevertheless, they are too important to be ignored, as is too frequently the case at present. In the paper we offer some necessarily preliminary, and deliberately provocative, reflections on how to take forward such a re‐conceptualisation. Ultimately, our analysis revolves around the identification of an uneasy tension between the demand for deregulated financial markets and the increasing integration of those markets, and the international momentum towards finding ways of dealing with the (apparently) ever‐increasing problems of corruption, money laundering, and the financing of terrorism through new forms of financial regulation and control.     

Post‐displacement community resilience: Considering the contribution of indigenous skills and cultural capital among ethnic minority Vietnamese

Despite an improving regulatory framework and policies governing compensation and resettlement, the majority of the millions displaced worldwide each year by hydropower dam construction continue to experience marginalisation and impoverishment, suggesting that external financial support must be supplemented by strengthened community‐based resilience. In order to understand more about the innate resources of displaced rural communities, we applied a community resilience approach to two resettled Co‐tu ethnic minority villages in an upland area in central Vietnam to identify their community capitals and their application in improving livelihoods and living conditions. We found that weak human and financial capital constrained the ability of the resettled residents to adopt new livelihoods or migrate to seek employment. Reduced forest and river access also problematised responses to a lack of agricultural land. However, traditionally strong village affinity and social networks were retained. In addition, indigenous skills such as housing construction, honed by a highly mobile traditional lifestyle, allowed residents to construct culturally significant structures like community houses and modify or augment received housing stock. These elements of social and cultural capital eased the process of post‐resettlement adaptation. We conclude that governments should reassess current resettlement policies that prioritise financial compensation and should incorporate awareness of the adaptive resilience and limitations fostered by indigenous knowledge and practices in resettlement action plans.     

Financial SEM Analyzing on Stock Evaluation in Circulation of China

Now the appraisement of stock market of China is still in the exploring phases. When stocks are appraised, people usually use expert-method or history-method aiming at different factors, especially the confirming of the factors that affect the stock evaluation and the interaction between different factors are not analyzed quantitatively, resulting in the stagnation of next researches on the whole.By applying the SEM to stock evaluation of Chinese stock market, we build a financial structural model, analyzes the influence to stock evaluation of each factor and build the experience mode value of stock evaluation of China. This can be consulted by stock evaluation and credit evaluation of China.     

Shenzhen in China's Financial Center Networks

Shenzhen, China, aspires to be an international financial center; however, its financial sector occupies an anomalous position in China's networks. The sector is tightly integrated into mainland networks, and Shenzhen's local banks provide access to Hong Kong's networks. Nonetheless, the city's proximity to Hong Kong, the Asia‐Pacific center of financial networks, confers few incremental benefits compared to those received by other mainland centers. The proposed Qianhai financial district, which is to be a laboratory for opening China's capital accounts, does not differentially boost Shenzhen because other financial centers will be allowed to experiment. A network theory of financial centers provides the explanatory framework for interpreting Shenzhen in China's financial center networks. Empirical analyses focus on Shenzhen's network ties with the Mainland and with Hong Kong. Shenzhen's future rests on the capacity of its financial firms to participate in the networks of South China, as well as to operate across the Mainland.     

Application of Multivariate Statistics in Early-warning of Corporation Financial Crisis

This paper is focused on early warning of corporation financial crisis for the China's household electric appliance manufacturers in stock market. Firstly, using company's open-disclosed annual statements as data resource, the financial indexes system is constructed. Secondary, adopting the multivariable statistical analysis method, such as cluster, discriminate and principle component analysis, the multivariate models for the empirical study on early warning of financial crisis by making use of SPSS statistical software are set up. The corporation might discover the financial affairs crisis that shall probably arise beforehand by using the financial affairs crisis early warning system. This study and analysis may serve as reference for domestic industries and enterprises.     

An “Orphan” Creative Industry: Exploring the Institutional Factors Constraining the Canadian Fashion Industry

In recent years, tier‐two fashion countries have been making gains in the global fashion industry, with hip young brands, buzz‐worthy fashion weeks and export‐oriented designers. The Canadian fashion industry, on the other hand, continues to fall behind and instead has experienced recent high‐profile closures of leading domestic fashion names. This paper explores why this is the case by considering a wide range of factors from a historical and institutional perspective. We argue that Canadian fashion is facing a number of systemic problems relating to wider institutional and policy weaknesses, rather than a lack of talent and know‐how within the entrepreneurs and businesses in the sector. While the fashion industry is indeed global, we argue that it is in fact national and local level factors—political, economic, and cultural—that structure and constrain the Canadian fashion industry for independent designers. Through exploring the experiences of this group of actors—entrepreneurial fashion designers—in this particular context, we not only learn about Canada as an economy but also what is needed in order to develop the fashion industry more broadly. We provide a framework for analysing the range of socio‐economic, historical, and political factors at the national level which affect the performance of the fashion sector and the operation of fashion designers as the entrepreneurial actors at the heart of the industry.     

The Power of Governance in Financial Relationships: Governing Tensions in Exotic Infrastructure Territory

ABSTRACT The scope of financial products has recently extended to include investments in infrastructure assets that were previously community owned. While private investment in infrastructure is not new, the rise of institutional investors searching for infrastructure investments to match long‐term liabilities is a recent phenomenon. Most cannot hire the necessary expertise or take on the relatively large risks that accompany undertaking such endeavors in‐house, with many opting to place capital in specialised infrastructure funds. While there is a plethora of studies on various aspects of public and corporate governance, this paper concentrates on the governance of relationships between institutional investors and their infrastructure fund managers, contributing to the growing body of literature on financial geographies through a focus on the decision‐making of financial actors at the micro level, where the origins and destination of capital into geographies are determined. This private governance is defined as the “regulation” by private agents, insofar as they must anticipate and deal with potential or inherent conflicts of interest. Even as the “embedded” argument stresses the role of concrete personal relations and networks in generating trust, when interests need to be safeguarded in new and unfamiliar settings such as in infrastructure equity investing, the scope of private governance plays a central role in creating the financial relationship. This is supported through a discussion of four problems in private infrastructure governance, which are affected by but also have an impact upon the development of trust and long‐term relationships. Despite differing constraints and various degrees of negotiating leverage, innovative economic action is structured through anticipating and aligning diverging interests of (new) social relations.     

Internal and external constraints of the Cuban production sector

This paper aims to explain the growth of the Cuban production sector between 1975 and 2014 by considering both demand and supply factors simultaneously. The research provides new empirical data on this topic through the application of a simultaneous equation model that considered the effect on the product of internal and external constraints most relevant to the Cuban economy, and the impacts of these over time. Its results confirm that the growth of the Cuban production sector was primarily limited by two factors: On the one hand, an overly centralized regulatory framework that reduces the global efficiency of the Cuban economy; and, on the other hand, a foreign exchange deficit that restricts its import capacity and the sustained growth of the Cuban capital stock. Therefore, the Cuban production sector's growth could be fostered by both a greater decentralization of its regulatory framework and the implementation of industrial and commercial policies geared to make Cuban exports more competitive.     

国内外旅游竞争力研究综述

从指标体系构建、评价方法、竞争力提升3个方面回顾了国内学者在旅游竞争力领域的研究成果,简述了国外学者旅游竞争力研究的最新进展,最终得出近年来国内外旅游竞争力研究的主要特点：在指标体系方面,国内学者尚未摆脱波特“钻石模型”的框架,国外学者对于各因素的相关性分析有所欠缺;在理论模型方面,国内学者较少涉及,国外学者相关研究较多,并在模型修正和其他学科理论的引入上做了很多有益的尝试;与国内学者相比,国外学者在评价方法方面有很大的拓展;在竞争力提升对策方面,国内研究一般仅作笼统阐述,国外学者虽然提出了一些有益的建议,但还有待深入。     

An Empirical Study on the Relationship between Economic Growth and Financial Development

This paper discusses the relationship between financial development and economic growth. Some essential Chinese macroeconomic datum during late twenty years which include Gross Domestic Product (GDP) of the whole economy,state and private sectors,investment in fixed Assets,financial relative rate and real interest rate estimated in a multivariate vector auto regression (VAR) framework. The estimates suggest that financial development boosts GDP growth, and it does not exist in reverse.     

Space of Flows,Uneven Regional Development,and the Geography of Financial Services in Ireland

ABSTRACT This paper is concerned with the geography of finance in the globalising knowledge‐based economy, characterised by the proliferation of information and communication technology. More specifically, the paper aims to examine the “locational structure” of financial services in such an economy and its implications for uneven regional development in Europe. In doing so, the paper engages with the concept of “space of flows” and several other theoretical approaches concerned with the geography of advanced producer services and finance. It argues that while such approaches provide a useful starting point, they need be developed further in order to inform an understanding of both the nature and the dynamics of the “locational structure” of financial services and its implications for regional economic development. This point is illustrated in the case of Ireland, focusing on “domestic” banking institutions and “international” financial services operating there. The paper concludes that while “space of flows” provides a useful metaphor for approaching the geography of financial services and other knowledge intensive business services, the conceptual and analytical emphasis should shift towards the “flows of value” that ultimately impinge upon the fortunes of cities and regions.     

Hierarchical Tendencies of Capital Markets Among International Financial Centers

Abstract The dramatic evolution of global finance in the last three decades has seen intensified competition among the world's major cities to become prominent control centers of global financial flows. This paper examines the spatial organization and evolution of capital markets in forty‐three world cities from 1980 to 1998. It finds evidence of the strengthening of hierarchical tendencies among world financial and capital cities as they search for ways to differentiate between themselves through financial concentration and productivity. The results also indicate a trend towards the dominance of London and New York in this financial hierarchy, and that top tier cities tend to be characterized by significantly lower levels of market and share concentrations, share trading value, and risks. Finally, important differences in ownership patterns between the capital markets are detected for the top cities of the hierarchy.     

Redefining “Offshore” in Latin America

Offshoring and outsourcing are two terms—often used interchangeably—that comprise an essential element of the modern post‐industrial global economy. Analysis of this phenomenon in the United States is often framed in the light of job loss and economic decline relating to the manufacturing or low‐end services sectors, but this paper will revisit the traditional offshore industry—that of offshore finance and offshore financial centers (OFCs) and compare OFC offshoring with traditional offshoring in Latin America. This paper argues that some similarities are evident when comparing OFC offshoring with traditional offshoring but many differences exist. Using the framework or “lens” of politics certain OFC offshoring issues and tensions with the onshore world relating to unfair tax competition, money laundering, sovereignty, secrecy, regulation, trust, and reputation are analyzed and are shown to be more onerous, tense and different from those occurring in the mainstream offshoring/outsourcing world. In addition, using the “lens” of cyberspace and e‐commerce, and a case study of the Cayman Islands and the Bahamas, this paper argues that the creation of an electronic infrastructure in the OFC offshoring world is as necessary as in the onshore world, but the actors and institutions creating and promoting such infrastructures are different. Future work could pursue more reputable and comparative data gathering to further more rigorous statistical modeling of the relationships both between OFCs as they compete for offshore capital, and between offshore and onshore as the onshore world seeks to further lift the veil of offshore financial opacity, particularly related to issues of money laundering.     

人民币汇率升值对中国粮食安全影响的一般均衡金融模型分析

通过构建一般均衡金融模型,分析了汇率变化对中国粮食安全的影响。模拟结果显示,现有中国经济增长条件下,人民币升值5%、10%、20%,对中国经济增长产生了较为持久的负面影响。与工业部门一样,人民币升值对农业部门也产生了产出、就业、投资及产出价格下降的严重影响,这种影响关系到农产品生产和供给,与中国的粮食安全息息相关,自2005年以来,人民币实际升值22%,过去的几年中,除粮食生产外,中国农产品生产遭受诸多价格风险,理论上,隐藏在农产品价格风险背后的因素,人民币升值有一定的作用。所以,人民币升值进程中,必须密切关注中国的农产品生产特别是粮食生产的安全。     

Some Micro‐Evidence on the “Porter Hypothesis” from Austrian VOC Emission Standards

This paper presents some micro‐evidence relevant to the “Porter Hypothesis” on the techno‐economic consequences of Austrian Volatile Organic Compound (VOC) emission standards, the most restrictive of their kind in the world. Using firm‐level survey data and complementing it with highly disaggregated foreign trade data, the paper explores whether the standards had a palpable impact on the competitiveness of Austrian manufacturers of paints, coatings, printing inks, and adhesives, whether compliance stimulated innovation in this industry, whether the standards crowded out other, more productive Research and Development (R&D), and whether compliance efforts gave rise to unexpected benefits of compliance. It finds no unequivocal aggregate impact on the competitiveness of regulated firms, yet does find some interesting variation with firm size. Moreover, the standards appear to have dampened import competition. The standards gave rise to considerable changes in firms’ product range and appear to have accelerated the rate of product innovation in the regulated industry. R&D spending to develop compliant products is found to be very unevenly distributed, mainly due to technological and, to a lesser extent, organizational factors. There is evidence that compliance efforts displaced or postponed existing R&D projects. However, there is also evidence that search for compliant products yielded unexpected and beneficial ideas, knowledge, and competencies.     

Analysis on the Track of Chinese Financial Development and Economic Growth

This paper discussed the long-run relationship between financial development and economic growth of china is examined in a multivariate vector auto regression (VAR) framework. And validate whether the economics of china according with hypothesis brought forward by the economist of Yale University Hugh T. Patrick. And the hypothesis was from two theories; one is "demand-following"; the other is "supply-leading". The conclusion of this paper examines the economic growth of China is true of the hypothesis.