Multiple large shareholders and corporate fraud: evidence from China

This study tests the effect of multiple large shareholders on the level of corporate fraud using the data of Chinese listed companies from 2010 to 2018. We find lower probabilities and lower corporate fraud frequencies when there are multiple large shareholders in Chinese listed companies, indicating that their presence plays a supervisory role in internal governance. These results persist after we control for endogeneity. Moreover, the effect of multiple large shareholders on corporate fraud is strengthened with the separation of control right and cash flow right. Further analyses reveal that companies with multiple large shareholders experience considerably reduced information disclosure fraud but no reduction in operating or leader frauds. Additionally, information asymmetry and the capital occupation of controlling shareholders both play a mediating role in the relationship between multiple large shareholders and the level of corporate fraud. This study enriches the literature on the determinants of corporate fraud and the effects of multiple large shareholders. Our findings also provide implications for companies and regulators regarding ways to reduce fraud.

Implementing a Real Time Virtual Mouse System and Fingertip Detection based on Artificial Intelligence

Artificial intelligence refers to the simulation of human intelligence in computers that have been trained to think and act like humans. It is a broad branch of computer science devoted to the creation of intelligent machines capable of doing activities that would normally need human intelligence. Despite the fact that Artificial intelligence is a heterogeneous science with several techniques, developments in machine learning and deep learning are driving a paradigm shift in practically every business. Human-computer interaction requires the identification of hand gestures utilizing vision-based technology. The keyboard and mouse have grown more significant in human-computer interaction in recent decades. This involves the progression of touch technology over buttons, as well as a variety of other gesture control modalities. A normal camera may be used to construct a hand tracking-based virtual mouse application. We combine camera and computer vision technologies, such as finger- tip identification and gesture recognition, into the proposed system to handle mouse operations (volume control, right click, left click), and show how it can execute all that existing mouse devices can.

Impact of Rule Governance Mechanism on Project Performance in Public Rental Housing PPP Projects: Control Rights as a Moderating Variable

Exploring the relationship among rule governance mechanism, project control rights allocation, and project performance in public-private partnership (PPP) projects is of great significance for optimizing control rights allocation and governance mechanism to improve project performance of PPP projects. Previous studies have mainly focused on the impact of contractual governance or rule-based governance on the performance of PPP projects, and the research on the allocation of project control rights into the analysis framework is insufficient. The goal of this study is to explore the moderating effect of the allocation of project control rights on the project’s rule mechanism affecting project performance. Based on the theoretical analysis and literature review, three hypotheses are put forward, and the hypotheses are tested by structural equation model using the large sample data collected by questionnaire survey. This study shows that both the rule governance mechanism and project control right allocation have a positive impact on project performance, and the allocation of project control right has a negative moderating effect on the impact of rule governance mechanism on project performance. The public characteristics of PPP projects determine that it is inappropriate for social capital to have too much project control rights. The degree of project control rights owned by social capital should be balanced with the rule governance in the dynamic management process.

Probabilistic skeletons endow brain-like neural networks with innate computing capabilities

Genetically encoded structure endows neural networks of the brain with innate computational capabilities that enable odor classification and basic motor control right after birth. It is also conjectured that the stereotypical laminar organization of neocortical microcircuits provides basic computing capabilities on which subsequent learning can build. However, it has remained unknown how nature achieves this. Insight from artificial neural networks does not help to solve this problem, since their computational capabilities result from learning. We show that genetically encoded control over connection probabilities between different types of neurons suffices for programming substantial computing capabilities into neural networks. This insight also provides a method for enhancing computing and learning capabilities of artificial neural networks and neuromorphic hardware through clever initialization.

Optimal design of venture capital financing contracts: the case of Portuguese, Spanish and German markets

Purpose This study aims to investigate the use of convertible securities and control rights covenants for a sample of 53 Portuguese, Spanish and German venture capital (VC) firms. Design/methodology/approach A relatively new methodology in business sciences – a fuzzy set qualitative comparative analysis – that considers both quantitative and qualitative factors is used for obtaining a solution that best fits the empirical data. Findings The results show that the use of convertible securities is affected by agency predictions, namely, the anticipated severity of double-sided moral hazard problems. On the other hand, a mixed support is provided to the agency predictions regarding the use of control right covenants. The results seem to suggest that control right covenants tend to play a different role from convertible securities in the optimization of contract design for VC-backed investments. Originality/value Existing literature on VC contract design is extended by providing a cross-border analysis to VC financing decision.

Analysis on Improvement of Ownership Structure and Dividend—Take Apple as an Example

Equal equity is not a suitable pathway to control the corporations. For Apple Company, due to Jobs’ equal equity, the most important reason that he quitted his company is that at the first step of the company, he had the same shares as other members of the board, but he did not have the absolute control of his company. Also, after the corporation was listed, the shares have been diluted gradually. Losing the control right, Jobs cannot make wise decisions or seek for strategic chances to make a huge profit, when members of the board held diverse opinions. Therefore dual-class share structure and ownership systems are the better choice for founders and entrepreneurs to operate and control the company. Managers have absolute control of the corporations so that they could make intellectual decisions without disturbance and intervention. Companies, accumulating a large amount of money, could pay dividends to shareholders and buy stocks.