E-Commerce Security and Honesty-Credit

2009 ◽  
pp. 73-93
Author(s):  
Guoling Lao
Keyword(s):  
Information Asymmetry ◽  
Service Industry ◽  
Third Party ◽  
System Construction ◽  
Credit System ◽  
Social Culture ◽  
Culture Development ◽  
Information Integrity

E-commerce mode aggravates information asymmetry so that honesty-credit problems become more serious. This chapter discusses the honesty-credit issue and honesty-credit system construction in e-commerce. It argues that the honesty-credit issue belongs to e-commerce security problems to some extent since it also destroys information integrity, confidentiality, and availability. The study of honesty-credit issue in e-commerce will help to promote social culture development as well as improve e-commerce security. Basing on analysis of three game models, the article suggests the construction of social honesty-credit system mainly include four aspects: cultivate citizens’ sense of honesty-credit, strengthen legislation, build mechanism of third-party authentication and regulate third-party service industry. At the end of the chapter, the case of Shanghai honesty-credit system construction of is introduced to describe China honesty-credit status.

Supply Chain Coordination for E-Commerce: Risk Penalty vs. Flat Rate

2021 ◽  
Author(s):  
Ju Myung Song ◽  
Yao Zhao
Keyword(s):  
Supply Chain ◽  
Information Asymmetry ◽  
Risk Sharing ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
Problem Definition ◽  
Third Party ◽  
Common Belief ◽  
Shipping Industry ◽  
Flat Rate

Problem definition: We study the coordination of an E-commerce supply chain between online sellers and third party shippers to meet random demand surges, induced by, for instance, online shopping holidays. Academic/practical relevance: Motivated by the challenge of meeting the unpredictable demand surges in E-commerce, we study shipping contracts and supply chain coordination between online sellers and third party shippers in a novel model taking into account the unique features of the shipping industry. Methodology: We compare two shipping contracts: the risk penalty (proposed by UPS) and the flat rate (used by FedEx), and analyze their impact on the seller, the shipper, and the supply chain. Results: Under information symmetry, the sophisticated risk penalty contract is no better than the simple flat rate contract for the shipper, against common belief. Although both the risk penalty and the flat rate can coordinate the supply chain, the risk penalty does so only if the shipper makes zero profit, but the flat rate can provide a positive profit for both. These results represent a new form of double marginalization and risk-sharing, in sharp contrast to the well-known literature on the classic supplier-retailer supply chain, where risk-sharing contracts (similar to the risk penalty) can bring benefits to all parties, but the single wholesale price contract (similar to the flat rate) can achieve supply chain coordination only when the supplier makes zero profit. We also find that only the online seller, but not the shipper, has the motivation to vertically integrate the seller-shipper supply chain. Under information asymmetry, however, the risk penalty brings more benefit to the shipper than the flat rate, but hurts the seller and the supply chain. Managerial implications: Our results imply that information plays an important role in the shipper’s choices of shipping contracts. Under information symmetry, the risk penalty is unnecessarily complex because the simple flat rate is as good as the risk penalty for the shipper; moreover, it is better for the seller-shipper coordination. However, under information asymmetry, the shipper faces additional shipping risk that can be offset by the extra flexibility of the risk penalty. Our study also explains and supports the recent practice of online sellers (e.g., Amazon.com and JD.com), but not shippers, to vertically integrate the supply chain by consistently expanding their shipping capabilities.

scholarly journals Management of Social Culture Development of Community Village Bobanehena Tourism, North Halmahera District

2020 ◽  
Vol 3 (3) ◽  
pp. 52-62
Author(s):  
Nurlaila Nurlaila
Keyword(s):  
Qualitative Analysis ◽  
Urban Areas ◽  
Cultural Development ◽  
Rural Life ◽  
Actual State ◽  
Social Culture ◽  
Village Community ◽  
Tourist Village ◽  
Culture Development ◽  
Main Attraction

Tourism Village is a place that has certain characteristics and values that can be a special attraction for tourists with an interest in rural life. This shows that the main attraction of a tourist village is the unique life of the villagers and cannot be found in urban areas, for example showing the unique socio-cultural characteristics of the community. The purpose of this research is to find out that there is a socio-cultural development of the Bobanehena village community in advancing the tourism village. By using descriptive qualitative analysis methods can provide an objective picture of the actual state of the object being investigated. The results obtained are that the community's isorganization and perception of tourists are still weak, so that it affects the support and participation of the community in promoting tourism villages. The community does not yet understand the support that must be given in the progress and development of the Bobanehena tourism village.

Identifying the determinants of Malaysian corporate Sukuk rating

2018 ◽  
Vol 11 (3) ◽  
pp. 432-448 ◽  
Author(s):  
Nur Amirah Borhan ◽  
Noryati Ahmad
Keyword(s):  
Information Asymmetry ◽  
Multinomial Logistic Regression ◽  
Small Sample Size ◽  
Small Sample ◽  
Third Party ◽  
Significant Variable ◽  
Content Type ◽  
Rating Agencies ◽  
High Level ◽  
Rating Category

Purpose This study aims to identify the determinants of Malaysian corporate Sukuk rating and attempts to find out which determinant has the most significant impact. Design/methodology/approach The framework tries to establish a relationship between firm’s size, profitability, Sukuk guarantee status and types of Sukuk with Sukuk rating from the perspective of Agency Theory and Information Asymmetry Theory. The data consist of 43 Sukuk issuances from 2006 to 2015. Multinomial Logistic Regression Model is then used to find out the significant determinants of Sukuk rating. Findings The study found that only three variables significantly impact Sukuk rating. The results show that a guaranteed Sukuk Ijarah or a guaranteed Sukuk Musyarakah that is issued by a highly profitable firm has a higher likelihood of getting rating AAA or rating AA as compared to getting rating A. A type of Sukuk, particularly Sukuk Murabahah, is the most significant variable influencing Sukuk rating. However, firm size is not a significant determinant of Sukuk rating in the context of this study. Research limitations implications The first limitation of the study is the relatively small sample size. Second, the study only tested four independent variables. Practical implications Several implications are derived from the results of the study. First, new firms that are planning to issue Sukuk should consistently maintain a high level of profit and consider issuing debt-based Sukuk to ensure that the issued Sukuk have higher rating. To increase the likelihood of getting higher rating, they should also consider providing a third-party guarantor. As for existing Sukuk issuers that are in lower rating category, they should increase their profitability to be upgraded to higher rating category. Second, risk-adverse investors should invest in highly profitable, guaranteed and debt-based Sukuk, as these Sukuk are likely to be in higher rating category and provide guarantee in terms of capital payments during liquidation or bankruptcy. Third, to reduce information asymmetry, policymakers should make it compulsory for all Sukuk issuers to have their Sukuk rated annually and make it mandatory for all rating agencies in Malaysia to publish their Sukuk rating methodologies. Originality/value This paper helps to expand the limited existing literature about the determinants of Sukuk rating, particularly for the Malaysian corporate Sukuk.

Information asymmetry, third party certification and the integration of organic food value chain in China

2019 ◽  
Vol 12 (1) ◽  
pp. 20-38 ◽  
Author(s):  
Jiang Zhao ◽  
Ksenia Gerasimova ◽  
Yala Peng ◽  
Jiping Sheng
Keyword(s):  
Information Asymmetry ◽  
Value Chain ◽  
Food Supply ◽  
Product Information ◽  
Organic Food ◽  
Raw Milk ◽  
Third Party ◽  
Content Type ◽  
Organic Certification ◽  
Food Value

Purpose The purpose of this paper is to discuss characteristics of organic food value chain governance and policy tools that can increase the supply of good quality of agri-products. Design/methodology/approach This paper discusses a national organic food supply system in China, identifying the link between an organization form with a social confidence crisis and information asymmetry as the main challenges. It develops an analytical model of the market structure of organic certification based on the contract theory, which considers the certification incentive driven by both farmers and processors. Two cases of raw milk producers and processors provide empirical data. Findings The argument which is brought forward is that product information asymmetry together with strict requirement for ensuring organic food integrity brings the organic milk value chain into a highly integrated organization pattern. A tight value chain is effective in the governance of organic food supply chain under third party certification (TPC), while a loose value chain discourages producing organic products because of transaction costs. TPC is found to be a positively correlation with a tight value chain, but it brings high organizational cost and it raises cost for consumers. Originality/value This is the first paper discussing the governance of organic food value chain in Chinese milk industry.

How Can Ceramic Small-Medium Enterprises Access to Finance in China?

2010 ◽  
Vol 177 ◽  
pp. 427-429
Author(s):  
Rong Hui Hua ◽  
Li Wei Zhou
Keyword(s):  
Information Asymmetry ◽  
Social Service ◽  
External Environment ◽  
Credit System ◽  
Access To Finance ◽  
Set Up ◽  
Market Preference ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
Finance Department

It is necessary to discover the factors that block small-medium enterprises (SMEs) do financing successful. The paper describes market preference, credit system and social service which affect company doing finance by external environment. Moreover, information asymmetry and weak social service make SMEs do finance hard. The paper gives some suggestions such as set up a new finance department in the company, perfect credit system and social service.

The Corporate’s Credit Evaluation of Engineering Supervision Based on Porter's Five Forces Model

2014 ◽  
Vol 638-640 ◽  
pp. 2450-2454 ◽  
Author(s):  
Xi Jing Qi ◽  
Meng Tong Sun ◽  
Meng Chen
Keyword(s):  
Liability Insurance ◽  
System Construction ◽  
Credit System ◽  
Defect Engineering ◽  
Professional Liability ◽  
Credit Evaluation ◽  
Corporate Credit ◽  
The Status ◽  
Project Supervision

In order to change our corporate credit defect engineering supervision status, this paper uses Porter’s five forces model to analyze our engineering supervision enterprises, and the credit system construction. Our thesis project supervision companies can change the status of lack of credit by starting professional liability insurance, and other methods.

A Survey on Development of Energy Service Industry in Zhejiang China

2014 ◽  
Vol 587-589 ◽  
pp. 140-144
Author(s):  
Yan Qu ◽  
Xu Yan Wang ◽  
Jo Darkwa
Keyword(s):  
Energy Consumption ◽  
Service Industry ◽  
Third Party ◽  
Healthy Development ◽  
Service Company ◽  
Network Building ◽  
Energy Service ◽  
Energy Service Company ◽  
Reducing Energy ◽  
Significant Factors

Energy service industry (ESI) has grown quickly recent year in China. A main and important role in ESI is Energy Service Company (ESCO) which engages in reducing energy consumption through retrofitting the existing facilities. This survey focuses on the development of energy service industry in Zhejiang involving opportunities and barriers of the growth of ESCO. The results show that generating a third-party finanicing network, building more perfect policies and regulations and raising credit awareness are significant factors for healthy development of ESI.

scholarly journals Social Credit System Construction Plan as Road Map for the Reform of Social Management in China in the 2010s

2020 ◽  
Vol 7 (1 (25)) ◽  
pp. 147-157
Author(s):  
Dmitry I. Popov
Keyword(s):  
Political Stability ◽  
Chinese Society ◽  
System Construction ◽  
Credit System ◽  
Policy Document ◽  
Social Credit ◽  
Road Map ◽  
Social Governance ◽  
Reform Plan ◽  
Social Management

The article is devoted to a policy document that defines the main directions and principles of creating a social credit system in China. It is shown that the reform plan and the ongoing changes are quite consistent with the Chinese bureaucratic traditions of coercion and paternalism, and are associated with the use of a social regulator that forms the appropriate behavioral incentives, such as reputation. Ultimately, the new model of social governance is aimed at ensuring social and political stability in China and proactively addressing the development problems of Chinese society.

scholarly journals Risk Self-Selection and the Concept of Equilibrium in a Competitive Insurance Market

Risks ◽  
2022 ◽  
Vol 10 (1) ◽  
pp. 9
Author(s):  
Łukasz Kuryłowicz ◽  
Adam Śliwiński
Keyword(s):  
Information Asymmetry ◽  
Insurance Premium ◽  
The Self ◽  
Third Party ◽  
Insurance Market ◽  
Self Assessment ◽  
Self Selection ◽  
Significance Levels ◽  
Negative Effect ◽  
Selection Mechanisms

The purpose of this paper is an analysis of the presence of self-selection mechanisms on the market that could bring the market closer to the separating equilibrium state, in line with the Rothschild–Stiglitz equilibrium model and its subsequent modifications. An example is the Polish market of compulsory third-party liability insurance of vehicle owners. This paper describes this market in terms of both its structure and its financial results. The main focus is on describing the assumptions of the Rothschild–Stiglitz model for markets operating under the conditions of information asymmetry and based on the self-selection mechanism, allowing for an unequivocal determination of the insured’s profile without the need to actually observe the insured’s behaviour. Finally, we show that thanks to the self-selection induced by the possibility of driving behaviour monitoring, the industry can minimise the negative effect information asymmetry has on the motor insurance market. This can be achieved, for example, by observing the choices made by the insured after being offered a new voluntary contract with a premium based on telematics data. Our analysis was carried out with the use of three selected characteristics that can determine the insured’s risk profile, i.e., distance covered, self-assessment, and insurance premium paid; the significance of the latter—although it may be intuitive—is questionable at commonly accepted significance levels. Therefore, the main result is that although there is some evidence on the disputed matter, there can be no definitive conclusion—especially in terms of risk as measured by insurance premium.

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