How Chinese Financial Centers Integrate into Global Financial Center Networks:An Empirical Study Based on Overseas Expansion of Chinese Financial Service Firms

The increasing globalization of the Chinese economy has been enabled by both Chinese financial institutions operating globally as well as international firms operating within China. In geographical terms, this has been organized through a number of strategic cities serving as gateways for the exchange of financial functions, products and practices between China and the global economy. Drawing on location data of financial service firms in China listed on stock exchanges in Shenzhen, Shanghai and Hong Kong, this paper shows that Chinese financial firms are expanding globally and how Chinese financial centers are positioned and connected in the urban networks shaped by these financial service firms. It is found that Hong Kong, China, holds strategic positions in the integration of Chinese cities into global financial center networks, and that establishing a foothold in global financial centers such as New York and London has been a priority for Chinese financial institutions. The increasing capital flows directed by Chinese financial institutionssuggests a shifting global financial geography, with numerous Chinese cities playing increasingly important roles within global financial center networks.

Accounting standards, disclosure requirements and foreign company listings on stock exchanges

Some have claimed that there would be more foreign companies listed on American stock exchanges if foreign companies could use International Financial Reporting Standards （IFRS） instead of American generally accepted accounting principles （GAAP） and could be exempted from some of the disclosure requirements of the Securities and Exchange Commission and of the Sarbanes-Oxley Act. In spite of these requirements, as of December 31, 2007, there are approximately 421 non-U.S, companies valued at $11.4 trillion listed on the New York Stock Exchange （NYSE）. Of these 421 companies, 41 companies are from China. This study examines the reasons for Chinese companies choosing to list on the New York Stock Exchange and their experiences with incremental disclosure and listing requirements on the Shanghai, Hong Kong, London, and New York stock exchanges. The lesson for foreign companies everywhere should be that foreign companies should search for those cross listings adding value and not be searching for countries and stock exchanges with weak disclosure and listing requirements.

The Influence of the Foreign Companies in Developing the Technological Absorption Capacity of the Romanian Economy During the Current Financial Crisis

Creating companies abroad, in ex-socialist countries of Central and Eastern Europe, has experienced a strong progression, following the amplification process of globalization of world markets, intensification of international trade and technological development. We are witnessing a regional disparity regarding the volume of foreign investments in this area, which is due to the difference of attractiveness of host countries economy. The attractiveness of these economies is conditioned, in its turn, by the importance of economic factors and the quality of existing infrastructures, which is at their turn facing an increasing complexity of technology. Business relocation of foreign investors is influenced also by the institutional environment, because foreign investors hope to capitalize on the collateral effects offered by the investment environment in the host country, such as research laboratories and existing infrastructure, without neglecting the benefits of a highly qualified workforce at reduced costs, some geopolitical advantages, etc.. After EU accession, the attractiveness index of business environment in Romania has increased from （-59%） in 2005 to 66% （2008）, and Romania was considered among the most attractive economies in Central and Eastern Europe, along with Russia where the attractiveness index increased from 63% （2007） to 72% （2008） and Ukraine which has seen an increase in the attractiveness index of the business environment from 56% （2007） to 67% （2008）. This paper aims to highlight the positive effects induced by international business companies in assessing technological absorption capacity of the Romanian economy and to provide economic analysis of the ＂cause-effect＂ link between the attractiveness of the Romanian economy-governance--the intake of foreign investment straight to the active processing export of Romania under the impact of the overall effects of international financial crisis.

Structural Changes That Generate Competitive Ability to the Metal Working Industry

This article presents the results of a study conducted in a Metallurgical industry located in the town of Santa Rosa--Rio Grande do Sul State, Brazil. Its central goal was to obtain a better understanding of the structural changes in the organization and identify its working practices through both case and bibliographic studies, taking into consideration the technological advances and the new management being implemented in the company, due to its acquisition by a multinational company. The proposal of a new organizational structure which has brought inevitable changes to the organizations but the structure needs to be well defined to lead to the company under study and its employees the best way, through continuous improvement and competitive entrepreneurship. The results obtained enable a better understanding of the history and nature of changes in the organization, considering it as a living and changing system.

Board Independence and Internal Committees in the BRICs

To be successful in global markets, companies from the emerging countries need the approval of foreign investors and other stakeholders. In this regard, Brazil, Russia, India, and China （BRIC） have progressively strengthened their corporate governance rules to help their companies overcome the competitors from the old industrialized countries. Directors＇ non-executive qualification, independence, and professional expertise represent basic requirements for effective corporate governance, so they should be carefully considered to guarantee a proper board composition and an adequate establishment of internal committees in listed companies. The paper intends to compare the legislative and regulatory frameworks adopted by the four countries; then it aims at answering to the following research questions by means of an empirical investigation： Have BRIC companies appointed non-executive and independent board members？ What do BRIC companies do in order to assure an effective participation of non-executive and independent board members to corporate governance activities？ Have BRIC companies established internal committees？ The research examines the appointment of non-executive directors and independent directors to the boards of 100 BRIC leading firms, as well as their involvement in internal committees focused on matters requiring motivated and impartial opinions. Although the laws and recommendations seem to favor a general convergence of corporate governance principles among the four BRIC and towards the international best practices, some differences and peculiarities emerge from a firm-level perspective. Indeed, the Indian and the Chinese companies analyzed appear more inclined than the Brazilian and the Russian ones to reassure their international stakeholders about board independence and effective committees.

The Relationship Between Financial Constraints and Cash-Cash Flow Sensitivity of Chinese Listed Companies

With the cash-cash flow sensitivity theory originally proposed by Heitor et al, this paper conducts an empirical study on the relationship between the cash-cash flow sensitivity and the financial constraint of A-share listed companies in China. The results indicate： （1） the financially constrained firms display significantly positive cash- cash flow sensitivities, while financially unconstrained firms show insignificant cash-cash flow sensitivities. （2） The cash-cash flow sensitivity is significantly negatively correlated with firms＇ earning profit ability and repaying debt ability, and the degree of the financial constraint changes in opposite directions with firms＇ earning profit ability and repaying debt ability, thus the cash-cash flow sensitivity and the degree of the financial constraint changes in the same direction.

How Often Does Human DNA Mutate?

Editor＇s comments The human mutation rate how often new changes appear in the DNA--is fundamental to understanding many aspects of medical genetics and human evolutionary genetics. But it is low, and has therefore been difficult to measure. In the past, scientists could only estimate it approximately, either by observing how often mutant phenotypes appeared, or by comparison of humans and closely related species, such as chimpanzee, where many mutations could accumulate but the time period was uncertain. Now, a new study supported by the NSFC in China and The Royal Society in the UK reports the first direct measurement of the human mutation rate at the individual letters （ nucleotides or bases） of DNA. This was possible because new （ next ）-generation sequencing technology is much more powerful than the methods available previously. The work was published in the lead- ing journal Currerzt Biology on 15th September 2009. The results were reported in the news by Nature, Science and the BBC , as well as in more than 20 Chinese newspapers and radio stations after the work first appeared online on 27th August. It was also one of the research highlights in Nature on 3rd September, which commented ＂ This direct measurement of the human mutation rate should help researchers to refine evolutionary dating and better understand the source of genetic disease＇. From the work, researchers could estimate that everyone has around 200 new mutations in their genome ; as the authors said, ＂we are all mutants＂. The ability to reliably measure rates of DNA mutation means we can begin to ask how mutation rates vary between different regions of the genome and perhaps also between different individuals.