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This paper introduces the readers to Neo-Transitional Economics – a volume which aspires to reinvigorate scholarly interest in transition economics research. The classical transition storyline is briefly revisited, and new directions for empirical and policy-relevant research that target post-transition economies in the post-crisis paradigm are highlighted.

A distinguished authority on methodology in the social sciences has written: “We are using models, willingly or not, whenever we are trying to think systematically about anything at all.”² As used here, a model refers to any “structure of symbols and operating rules” which we think has a counterpart in the real world. A circle, for example, may be used as a model to characterize the shape of a bowl or a crown. Governments are often described in terms of a model of the family, the ruler being likened to a father, the people to children. In one sense, a model is simply an elaborated simile or paradigm.

Due to climate change and an increasing concentration of the world’s population in vulnerable areas, how to manage catastrophe risk efficiently and cover disaster losses fairly is still a universal dilemma.

This paper applies a law and economic approach.

China’s mechanism for managing catastrophic disaster risk is in many ways unique. It emphasizes government responsibilities and works well in many respects, especially in disaster emergency relief. Nonetheless, China’s mechanism which has the vestige of a centrally planned economy needs reform.

I propose a catastrophe insurance market-enhancing framework which marries the merits of both the market and government to manage catastrophe risks. There are three pillars of the framework: (i) sustaining a strong and capable government; (ii) government enhancement of the market, neither supplanting nor retarding it; (iii) legalizing the relationship between government and market to prevent government from undermining well-functioning market operations. A catastrophe insurance market-enhancing framework may provide insights for developing catastrophe insurance in China and other transitional nations.

First, this paper analyzes China’s mechanism for managing catastrophic disaster risks and China’s approach which emphasizes government responsibilities will shed light on solving how to manage catastrophe risk efficiently and cover disaster losses fairly. Second, this paper starts a broader discussion about government stimulation of developing catastrophe insurance and this framework can stimulate attention to solve the universal dilemma.

As they say, “Change is the only constant.” Thriving and surviving during a period of extraordinary collision of technological advances, globalization, and climate change can be daunting. At any given point in one’s life, a transition can be interpreted in terms of the magnitude of change (how big or small) and the individual’s ontological experience of change (whether it disrupts an equilibrium or adapts an emergent way of life). These four quadrants represent different ways to live in a highly dynamic and complex world. We share the resulting four-quadrant framework from a quantitative and a mixed methods study to examine responses to various ways we respond to transitions. Contingent upon these two dimensions, one can use a four-quadrant framework to mobilize resources to design a response and hypothesize a desired outcome. Individuals may find themselves at various junctions of these quadrants over a lifespan. These four quadrants provide “requisite variety” to navigate individual ontology as they move into and out of fluid spaces we often call instability during a time of transition. In this chapter, we identified social, cognitive, psychological, and behavioral factors that contribute to thriving transition experiences, embracing dynamic stability. Two new constructs were developed, the first measures the receptivity to change, Transformation Quotient (TQ) and second measures the range of responses to transitions from surviving to thriving, Thriving Transitional Experiences (TTE). We hope our work will pave the way for Thriving to become a “normal” outcome of experiencing change by transforming the lexicon and expectation of engaging with transitions.

In this paper we show that the neo-transitional economies are less neoliberal than could be expected given their 25-years long transition towards building market environment, supporting entrepreneurship and restoring capitalism in general. According to factor analysis results based on a cross-sectional sample of 134 countries during the period of 2010–2012 we find that the neo-transitional economies are characterised by relatively restrictive trade and capital regulations, average level of labour protection and low activity of state in terms of tax-based redistribution and social cohesion support. We briefly review several theoretical frameworks, such as the World System Theory, Commodity Chain and Global Capital theory, and Varieties of Capitalism framework, and point towards their limitations in explaining these transitional outcomes. We conclude that these frameworks are not capable of providing the explanations mainly because of their limited or no concern for labour and capital, and their interactions with the national institutions. We conclude that the history of industrialisation and path dependence provides a more plausible framework for explaining the neo-transitional outcomes. Furthermore, the consideration of the ‘resource curse’ and authoritarian regimes in many CIS countries can explain their neglect for tax-based redistribution and the high degree of government interventions in trade and capital regulations.

This study examines the scholarly output of accounting researchers in the periods surrounding a change in university affiliation. Our expectation that publishing activity will increase in periods around an institutional change is based on expectancy theories and informed by studies on the contract year performances of professional athletes. Using a sample of 635 accounting professors who switched universities between 2008 and 2014, the authors find evidence that accounting authors who switch universities publish more in the years around a switch compared with other years. Our research contributes to the literature on changes in university affiliation by documenting a contract year phenomenon operating within accounting academia. Practical implications for college administrators are also discussed.

“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.

This paper provides evidence on the impact of regulatory environment on financial reporting quality of transitional economies. This study compares the financial reporting quality of Hong Kong firms which are cross-listed in mainland China with those of Hong Kong firms cross-listed in China using specific earnings management metrics (earnings smoothing, timely loss recognition, value relevance and managing towards earnings targets) under pre- and post-IFRS regimes.

The financial reporting quality of Chinese A-share companies and Hong Kong listed companies are examined using earnings management measures. Using 2007 as base year, the study used a cumulative of −5 and +5 years of convergence experience which provide a total of 3,000 firm-year observations. In addition to regression analyses, we used the difference-in-difference analysis to check for the impact of regulatory environments on earnings management.

Through the lens of contingency theory, our results indicate that the adoption of the new substantially IFRS-convergent accounting standards in China results in better financial reporting quality evidenced by less earning management. The empirical results further shows that accounting data are more value relevant for Hong Kong listed firms, and that firms listed in China are more likely to engage in accrual-based earnings management than in real earnings management activities. We established that different earnings management practices that are seemingly tolerable in one country may not be tolerable in another due to level of differences in the regulatory environments.

The findings show that Hong Kong listed companies’ exhibit higher level of financial reporting quality than Chinese listed companies, which implies that the financial reporting quality under IFRS can be significantly different in regions with different institutional, economic and regulatory environments. The results imply that contingent factors such as country’s institutional structures, its extent of regulation and the strength of its investor protection environments impact on financial reporting quality particularly in transitional and emerging economies. As such, these factors need to be given appropriate considerations by financial reporting regulators and policy-makers interested in controlling earnings management practices among their corporations.

This study is a high impact study considering that China plays a significant role in today’s globalised economy. This study is unique as it the first, that we are aware of, to compare real earnings activities against accrual-based earnings management in pre- and post-IFRS adoption periods within the Chinese and Hong Kong financial reporting environments, distinguishing between cross-listed and non-cross-listed firms.

Tracking global trends has evolved into an analytic and prognostic industry in and of itself, and we do not pretend to offer a comprehensive overview of global trends and globalization. We offer a selective catalog of what we see as the major global trends that impact upon public managers in developing and transitional nations.⁵