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Article
Publication date: 12 January 2015

Yilei Zhang and Yi Jiang

The purpose of this paper is to examine CEO wealth changes around seasoned equity offerings (SEOs) to explore the shareholder-manager incentive alignment in major…

Abstract

Purpose

The purpose of this paper is to examine CEO wealth changes around seasoned equity offerings (SEOs) to explore the shareholder-manager incentive alignment in major corporate equity financing decisions.

Design/methodology/approach

The authors decompose CEO wealth into three major components: price effect, board compensation grant, and CEO’s own portfolio adjustment. The authors then compare SEO-event sample vs non-event samples; and evaluate the dynamic and long-run CEO wealth effect.

Findings

The authors find when market reacts negatively to SEO announcement leading to losses in CEO’s existing firm-related wealth, CEO gets additional grants to offset the losses. Although this appears to be a rent-seeking activity, the authors find that the additional grants are mainly in the form of stock options which would have no value if stock price failed to pick up in the future. In this sense, the additional grants align the interests between shareholders and managers. Consistent with this argument, the authors show that the additional grants motivate CEOs to promote the stock performance, benefiting themselves as well as shareholders in the long-run.

Originality/value

The study explicitly calculates the contribution of each wealth component to CEO total wealth effect. The results improve the understanding of CEO compensation policy change after major corporate event and contribute to the literature of the optimality explanation of prevailing compensation policy.

Details

Managerial Finance, vol. 41 no. 1
Type: Research Article
ISSN: 0307-4358

Keywords

Book part
Publication date: 11 August 2014

Zhan Jiang, Kenneth A. Kim and Yilei Zhang

The change in CEO pay after their firms make large corporate investments is examined. Whether the change in CEO pay is a beneficial practice or harmful practice to firms…

Abstract

Purpose

The change in CEO pay after their firms make large corporate investments is examined. Whether the change in CEO pay is a beneficial practice or harmful practice to firms is investigated.

Design/Methodology/Approach

A sample of firms that make large corporate investments is identified. For this sample, we identify the change in CEO pay before and after the investment, and we also measure the pay-for-size sensitivity of these investing firms.

Findings

For firms that make large corporate investments, CEOs get significantly more option grants when their firms’ stock returns are negative after the investments and these investing CEOs get more option grants than noninvesting CEOs.

Research Limitations/Implications

The present study suggests that firms may have to increase CEO pay after large corporate investments to encourage investment. However, the results may also be consistent with an agency cost explanation. Future research should try to distinguish between the two explanations.

Social Implications

The study reveals a potential way to prevent CEOs from underinvesting.

Originality/Value

The study provides important insights to shareholders on how to encourage CEOs to get their firms to invest, and on how to view CEO pay increases after their firms invest.

Details

Advances in Financial Economics
Type: Book
ISBN: 978-1-78350-120-5

Keywords

Book part
Publication date: 27 November 2017

Steven A. Dennis, Yilei Zhang and Song Wang

We examine the maturity structure in private placements of debt and relate it to contracting, signaling, tax, and liquidity risk considerations for firms. We find that…

Abstract

We examine the maturity structure in private placements of debt and relate it to contracting, signaling, tax, and liquidity risk considerations for firms. We find that firms with higher tax rates issue private placements of debt with longer maturities, consistent with the tax hypothesis. However, our results do not support the contracting, signaling, and liquidity risk hypotheses. In addition, the results are confined to the smaller firms in the sample, firms without a public debt rating, and debt issues not pursuant to Rule 144A. The evidence is consistent with smaller firms issuing private placements of debt to avoid monopoly rent extraction from banks.

Details

Growing Presence of Real Options in Global Financial Markets
Type: Book
ISBN: 978-1-78714-838-3

Keywords

Content available
Book part
Publication date: 9 December 2013

Abstract

Details

Advances in Financial Economics
Type: Book
ISBN: 978-1-78350-120-5

Book part
Publication date: 9 December 2013

Abstract

Details

Advances in Financial Economics
Type: Book
ISBN: 978-1-78350-120-5

Content available
Book part
Publication date: 27 November 2017

Abstract

Details

Growing Presence of Real Options in Global Financial Markets
Type: Book
ISBN: 978-1-78714-838-3

Article
Publication date: 25 June 2021

Linyan Liu and Yilei Wang

This paper aims to take International SPOrt (ISPO) as a typical case to study how exhibition organizers can reshape their relationship with users through business model…

Abstract

Purpose

This paper aims to take International SPOrt (ISPO) as a typical case to study how exhibition organizers can reshape their relationship with users through business model innovation to answer the question that how enterprises can help the exhibition industry to upgrade and develop through business model innovation in the internet environment.

Design/methodology/approach

Faced with the development of internet technology, the impact of online platforms, the relationship between exhibition organizers and their customers are facing unprecedented challenges. On the basis of the literature review, this study analyzed the innovation of exhibitors’ business model from three modules: value proposition, revenue logic and cost base and how to reshape their interaction with users through innovation. This study systematically analyzed the innovation of the ISPO business model and the process of reshaping its relationship with users and dynamic interaction with a single case study method.

Findings

The main conclusions are as follows: the starting point of reshaping the relationship between exhibition organizer and users in the internet era is to re-understand the needs of customers, the key point of reshaping the relationship is to further cultivate the industrial value and the sustainability of the relationship lies in the customer life cycle management.

Originality/value

From the perspective of exhibition organizers filling the gap of case study in the field of the exhibition. In the area of the exhibition, previous studies rarely started from the perspective of exhibition organizers, but, this paper discusses the interaction between exhibition organizers, exhibitors and visitors from this perspective in this study.

Details

Nankai Business Review International, vol. 12 no. 2
Type: Research Article
ISSN: 2040-8749

Keywords

Open Access
Article
Publication date: 3 February 2020

Kai Zheng, Xianjun Yang, Yilei Wang, Yingjie Wu and Xianghan Zheng

The purpose of this paper is to alleviate the problem of poor robustness and over-fitting caused by large-scale data in collaborative filtering recommendation algorithms.

Abstract

Purpose

The purpose of this paper is to alleviate the problem of poor robustness and over-fitting caused by large-scale data in collaborative filtering recommendation algorithms.

Design/methodology/approach

Interpreting user behavior from the probabilistic perspective of hidden variables is helpful to improve robustness and over-fitting problems. Constructing a recommendation network by variational inference can effectively solve the complex distribution calculation in the probabilistic recommendation model. Based on the aforementioned analysis, this paper uses variational auto-encoder to construct a generating network, which can restore user-rating data to solve the problem of poor robustness and over-fitting caused by large-scale data. Meanwhile, for the existing KL-vanishing problem in the variational inference deep learning model, this paper optimizes the model by the KL annealing and Free Bits methods.

Findings

The effect of the basic model is considerably improved after using the KL annealing or Free Bits method to solve KL vanishing. The proposed models evidently perform worse than competitors on small data sets, such as MovieLens 1 M. By contrast, they have better effects on large data sets such as MovieLens 10 M and MovieLens 20 M.

Originality/value

This paper presents the usage of the variational inference model for collaborative filtering recommendation and introduces the KL annealing and Free Bits methods to improve the basic model effect. Because the variational inference training denotes the probability distribution of the hidden vector, the problem of poor robustness and overfitting is alleviated. When the amount of data is relatively large in the actual application scenario, the probability distribution of the fitted actual data can better represent the user and the item. Therefore, using variational inference for collaborative filtering recommendation is of practical value.

Details

International Journal of Crowd Science, vol. 4 no. 1
Type: Research Article
ISSN: 2398-7294

Keywords

Article
Publication date: 9 August 2013

Yuxing Peng, Zhu Zhencai, Minming Tong, Chen Guoan, Xingguo Shao, Wan Ma and Yilei Li

This paper aims to analyze the friction heat conduction and entransy of two friction linings in the high‐speed slide accident of a mine friction hoist.

Abstract

Purpose

This paper aims to analyze the friction heat conduction and entransy of two friction linings in the high‐speed slide accident of a mine friction hoist.

Design/methodology/approach

Firstly, the dynamic thermophysical properties were analyzed and their fitting equations were also obtained. Additionally, the dynamic heat partition ratio was obtained according to the dynamic thermophysical properties. Then, a simple method was developed to solve the temperature rise of friction lining. Finally, based on the theoretical model of temperature rise, the entransy of friction lining with respect to T and t were gained.

Findings

The error of temperature rise between simulation result and experiment result is less than 7 per cent, which proves that the theoretical model is correct. The entransy decreases with the temperature below 40°C and it increases after 40°C. The entransy of lining K is a little higher than that of lining G within 19 s, but the entransy of lining G is much higher than lining K after 19 s and the entransy difference gets great gradually. It is indicated that the lining K has good heat‐resistant property which is of great benefit to the tribological property of friction lining.

Practical implications

The authors' study provides a fundamental basis for developing a new friction lining with good heat‐resistant property, and it also brings forward a new quantitative method to evaluate the heat‐transfer capability of friction materials.

Originality/value

A simple method was introduced to calculate the temperature rise of friction lining with the consideration of dynamic thermophysical properties and dynamic heat partition ratio. And the entransy of friction lining was obtained to evaluate the heat‐transfer capability of friction linings quantitatively.

Details

Industrial Lubrication and Tribology, vol. 65 no. 5
Type: Research Article
ISSN: 0036-8792

Keywords

Article
Publication date: 8 March 2011

Arash Abbasalizadeh Boora, Firuz Zare and Arindam Ghosh

Multi‐level diode‐clamped inverters have the challenge of capacitor voltage balancing when the number of DC‐link capacitors is three or more. On the other hand…

Abstract

Purpose

Multi‐level diode‐clamped inverters have the challenge of capacitor voltage balancing when the number of DC‐link capacitors is three or more. On the other hand, asymmetrical DC‐link voltage sources have been applied to increase the number of voltage levels without increasing the number of switches. The purpose of this paper is to show that an appropriate multi‐output DC‐DC converter can resolve the problem of capacitor voltage balancing and utilize the asymmetrical DC‐link voltages advantages.

Design/methodology/approach

A family of multi‐output DC‐DC converters is presented in this paper. The application of these converters is to convert the output voltage of a photovoltaic (PV) panel to regulate DC‐link voltages of an asymmetrical four‐level diode‐clamped inverter utilized for domestic applications. To verify the versatility of the presented topology, simulations have been directed for different situations and results are presented. Some related experiments have been developed to examine the capabilities of the proposed converters.

Findings

The three‐output voltage‐sharing converters presented in this paper have been mathematically analysed and proven to be appropriate to improve the quality of the residential application of PV by means of four‐level asymmetrical diode‐clamped inverter supplying highly resistive loads.

Originality/value

This paper shows that an appropriate multi‐output DC‐DC converter can resolve the problem of capacitor voltage balancing and utilize the asymmetrical DC‐link voltages advantages and that there is a possibility of operation at high‐modulation index despite reference voltage magnitude and power factor variations.

Details

COMPEL - The international journal for computation and mathematics in electrical and electronic engineering, vol. 30 no. 2
Type: Research Article
ISSN: 0332-1649

Keywords

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