Liquidity of China’s agricultural futures market: measurement and cross-market dependence

PurposeThis paper aims to present the first empirical liquidity measurement of China’s agricultural futures markets and study time-varying liquidity dependence across markets.Design/methodology/approachBased on both high- and low-frequency trading data of soybean and corn, this paper evaluates short-term liquidity adjustment in Chinese agricultural futures market measured by liquidity benchmark and long-term liquidity development measured by liquidity proxies.FindingsBy constructing comparisons, the authors identify the seminal paper of Fong, Holden and Trzcinka (2017) as the best low-frequency liquidity proxy in China’s agricultural futures market and capture similar historical patterns of the liquidity in soybean and corn markets. The authors further employ Copula-generalized autoregressive conditional heteroskedasticity models to investigate liquidity dependence between soybean and corn futures markets. Results show that cross-market liquidity dependence tends to be dynamic and asymmetric (in upper versus lower tails). The liquidity dependence becomes stronger when these markets experience negative shocks than positive shocks, indicating a concern on the contagion effect of liquidity risk under negative financial situations.Originality/valueThe findings of this study provide useful information on the dynamic evolution of liquidity pattern and cross-market dependence of fastest-growing agricultural futures in the largest emerging economy.

Spillover Effects of Analyst Coverage on IPO Firms

This study investigates the effect of analysts’ recommendations and earnings forecasts for newly listed firms in the same industry. IPO underpricing is significantly lower as the number of firms whose investment recommendations are upgraded increases, supporting the contagion effect hypothesis that a high affinity for the industry has a positive effect on the IPO offer price. However, as the number of listed firms with higher earnings forecasts increases, IPO underpricing is higher, which supports the competitive effect hypothesis that the profit growth of competitors negatively affects IPO firms’ competitiveness. The effects vary depending on the competitive positions of both listed firms and IPO firms within the industry. The results also show that in industries with high concentration (i.e. low competition) , analyst information on listed firms has a greater contagion effect, while the competition effect hypothesis that better earnings forecasts for rival firms negatively affect IPO firms’ competitive position is not supported. This study contributes to the literature by analyzing the information spillover effect of analyst coverage in the IPO market by showing that the effects vary depending on the firms’ competitive positions as well as industry competition.

How Search Engines Handle Suicide Queries

The suicide contagion effect posits that exposure to suicide- related content increases the likelihood of an individual engaging in suicidal behavior. Internet suicide-related queries correlate with suicide prevalence. However, suicide-related searches also lead people to access help resources. This article systematically evaluates the results returned from both general suicide terms and terms related to specific suicide means across three popular search engines—Google, Bing, DuckDuckGo— in both English and Spanish. We find that Bing and DuckDuckGo surface harmful content more often than Google. We assess whether search engines show suicide prevention hotline information, and find that 53% of English queries have this information, compared to 13% of Spanish queries. Looking across platforms, 55% of Google queries include hotline information, compared to 35% for Bing and 10% for DuckDuckGo. Specific suicide means queries are 20% more likely to surface harmful results on Bing and DuckDuckGo compared to general suicide term queries, with no difference on Google.

A Study on the Sustainable Structural Relations between Social Exchange Relationship Characteristics and Social Contagion Effect in Beauty-Related One-Person Media

This study examined how members of beauty-related one-person media networks build sustainable ties with other members through various exchange activities and diffuse information based on the social contagion effect. Accordingly, social exchange relationship characteristics of beauty-related one-person media were specified and structural relations through which these characteristics affect group cohesiveness, conformity-based collective intelligence, and fad-like behavior were identified. A sample of 529 users with experience of consuming information on beauty-related one-person media was selected, and research hypotheses were tested via reliability testing, validity testing, measurement model analysis, and path analysis using SPSS ver. 23.0 and AMOS ver. 23.0. First, the path analysis between social exchange relationship characteristics of beauty-related one-person media and group cohesiveness revealed that relational characteristics significantly affected social cohesion, but situational characteristics and personal characteristics did not. Additionally, situational characteristics and personal characteristics significantly affected task cohesion, but relational characteristics did not. Second, the path analysis between group cohesiveness (social cohesion, task cohesion) and conformity-based collective intelligence in beauty-related one-person media revealed that social cohesion and task cohesion significantly affected conformity-based collective intelligence. Third, the path analysis between conformity-based collective intelligence and fad-like behavior in beauty-related one-person media clarified that conformity-based collective intelligence significantly affected fad-like behavior.

Monkey see, monkey feel? Marmoset reactions towards conspecifics' arousal

Consolation has been observed in several species, including marmoset monkeys, but it is often unclear to what extent they are empathy-based. Marmosets perform well in at least two of three components of empathy-based consolation, namely understanding others and prosociality, but it is unknown to what extent they show matching with others. We, therefore, tested whether non-aroused individuals would become aroused themselves when encountering an aroused group member (indicated by piloerection of the tail). We found a robust contagion effect: group members were more likely to show piloerection themselves after having encountered an aroused versus relaxed conspecific. Moreover, group members offered consolation behaviours (affiliative approaches) towards the aroused fellow group members rather than the latter requesting it. Importantly, this pattern was shown by both aroused and non-aroused individuals, which suggests that they did not do this to reduce their own arousal but rather to console the individual in distress. We conclude that marmosets have all three components of empathy-based consolation. These results are in line with observations in another cooperative breeder, the prairie vole.

The Contagion Effect of Compensation Regulation: Evidence From China

To shed light on whether and how firms changed compensation practices in response to a shift in the environment in which they operated, we examine whether there is contagion effect of executive compensation regulation on state-owned enterprises (SOEs) in the emerging market of China. Specifically, we investigate whether firms not directly affected by the changing regulatory environment nonetheless changed executive compensation in response to the actions of the directly affected firms, which is called contagion effect. We further examine the specific contagion mechanisms and the economic consequences of regulation on compensation. We find that the regulation has a significant effect on compensation gap in central SOEs and a contagion effect on local SOEs but not for non-SOEs. Within SOEs, there is an intra-industry contagion effect of compensation regulation but not an intra-region effect. Further, central SOEs and local SOEs experience reduced firm performance after the compensation regulations, but not the non-SOEs; indicating that the compensation regulation does not have favorable economic consequences for both the directly affected central SOEs and the indirectly affected local SOEs.

Influence of Cross-Listing on the Relationship between Financial Leverage and R&D Investment: A Sustainable Development Strategy

Investment in research and development (R&D) is an important sustainable strategy for firms in developing unique products to own their differentiation and competitive advantages. Financial leverage is influential in R&D investment. However, previous studies identified different relationship between financial leverage and R&D investment. This study revisits this puzzle from a unique perspective that targets firms undertaking international cross-listings. This specification allows us to test whether firms are willing to prioritize R&D funding when debt capacity is enhanced. This is a new perspective that has never been explored in the relationship between debt financing and R&D investment. We find that the launch of cross-listing significantly increases the level of firm financial leverage, which is followed by a significant increase in corporate investment in R&D. The aggressive strategy of cross-listing firms that enhance financial leverage to support more investment in R&D further significantly influences their industrial rivals to increase investment in R&D as a responding strategy. Overall, these results show that firms exploit the timing of international cross-listing to increase their leverage to further fund R&D, which also stimulates an intra-industry contagion effect. Our findings suggest a new viable path for funding R&D that carries important implications for corporate sustainability.