Speculative Trading and Stock Prices: Evidence from Chinese A-B Share Premia

The market dynamics of technology stocks in the late nineties has stimulated a growing body of theories that analyze the joint effects of short-sales constraints and heterogeneous beliefs on stock prices and trading volume. This paper examines implications of these theories using a unique data sample from China, a market with stringent short-sales constraints and perfectly segmented dual-class shares. The identical rights of the dual-class shares allow us to control for stock fundamentals. We find that trading caused by investors' speculative motive can help explain a significant fraction of the price difference between the dual-class shares.

Speculative Trading and Stock Prices: Evidence from Chinese A-B Share Premia

The market dynamics of technology stocks in the late 1990s have stimulated a growing body of theory that analyzes the joint effects of short-sales constraints and heterogeneous beliefs on stock prices and trading volume. This paper examines several implications of these theories using a unique data sample from a market with stringent short-sales constraints and perfectly segmented dual-class shares. The identical rights of the dual-class shares allow us to control for stock fundamentals. We find that trading caused by investors¡¯ speculative motives can help explain a significant fraction of the price difference between the dual-class shares.Speculative bubble, Trading volume

Hybrid Heat Exchangers

A hybrid light-weight heat exchanger concept has been developed that uses high-conductivity carbon-carbon (C-C) composites as the heat-transfer fins and uses conventional high-temperature metals, such as Inconel, nickel, and titanium as the parting sheets to meet leakage and structural requirements. In order to maximize thermal conductivity, the majority of carbon fiber is aligned in the fin direction resulting in 300 W/m.K or higher conductivity in the fin directions. As a result of this fiber orientation, the coefficient of thermal expansion (CTE) of the C-C composite in both non-fiber directions matches well with the CTE of various high-temperature metal alloys. This allows the joining of fins and parting sheets by using high-temperature braze alloys

Effectiveness of Mobile Phone Customer Retention Strategies

Using the 419,194 customers of a mobile operator as the sample, this research investigates the effectiveness of the company’s retention strategies. It examines the effect of such strategies on extending customer life cycle. We find that the retention policies and the incremental average revenue per user (ARPU) in the retention period over the month prior are positively correlated. In addition, the correlation between the retention polices and the increments of consumer consumption variables, such as the number of calls, the number of short messages and the value-added services, are also positive. Moreover, the significantly positive interaction terms between the retention bonus and the consumption increments suggest that the bonus affects the relative ARPU through the consumption variables. Finally, the retention strategies demonstrate the different effectiveness according to the three different calling plans. The managerial implications of our findings are discussed