Industrial Adjustment Research Articles

Predicting multistage financial distress: Reflections on sampling, feature and model selection criteria

AbstractThis research proposes a prediction model of multistage financial distress (MSFD) after considering contextual and methodological issues regarding sampling, feature and model selection criteria. Financial distress is defined as a three‐stage process showing different nature and intensity of financial problems. It is argued that applied definition of distress is independent of legal framework and its predictability would provide more practical solutions. The final sample is selected after industry adjustments and oversampling the data. A wrapper subset data mining approach is applied to extract the most relevant features from financial statement and stock market indicators. An ensemble approach using a combination of DTNB (decision table and naïve base hybrid model), LMT (logistic model tree) and A2DE (alternative N dependence estimator) Bayesian models is used to develop the final prediction model. The performance of all the models is evaluated using a 10‐fold cross‐validation method. Results showed that the proposed model predicted MSFD with 84.06% accuracy. This accuracy increased to 89.57% when a 33.33% cut‐off value was considered. Hence the proposed model is accurate and reliable to identify the true nature and intensity of financial problems regardless of the contextual legal framework.

Exploring Urban Expansion and Socioeconomic Vitality Using NPP-VIIRS Data in Xia-Zhang-Quan, China

Studying the spatiotemporal evolution of urban expansion in the Xia-Zhang-Quan metropolitan area (XZQ) is of crucial importance, to effectively guide coordinated development and industrial adjustment during urbanization. Based on National Polar Partnership-Visible Infrared Imaging Radiometer Suite (NPP-VIIRS) data this study used an analytical method of irregular spatial grids to explore and evaluate the dynamics of urban spatial expansion and urban socioeconomic vitality in XZQ between 2013 and 2017. The results show that the gulf-type urban development strategy of Xiamen has played a key role in the integration and development of XZQ. The urban area increased by 20–30% and increased intensity of socioeconomic activities was demonstrated by observed increases in the total brightness of urban nighttime light. Due to its unique advantages in the agricultural industries, Zhangzhou made significant economic progress during 2013–2017. At the same time, driven by spatial processes in Xiamen, areas such as the Zhangzhou Port Area and Longhai also achieved significant progress. This is also the case in Quanzhou and thus, collectively there is evidence of multi-polar growth. Jinjiang and Shishi effectively utilized coastal port economy development advantages to play a key role in the integration and development of XZQ. There were both commonalities and differences in terms of the characteristics of spatial expansion in different cities of XZQ. In summary, this study provides evidence to support further promotion of coordinated development in XZQ, and with appropriate caveats these findings could also be transferred to other urban agglomerations.

Revisiting Bowman’s Paradox in Accounting Risk and Return: New Indian Evidence

This study revisits the Bowman’s (1980, 1984) risk-return Paradox using accounting risk and return proxies, for 1004 Indian firms, existing continuously between 2000 to 2015. We find strong evidence of a ‘partial’ paradox. Firms which are poorly performing or below-median in the ranking exhibit a paradox (negative risk-return association), while firms which are relatively superior performers (above-median), exhibit mostly a puzzling ‘U’ pattern (initially negative and then becoming positive). It seems that the relatively poor performing firms within the above-median group, are driven by high ‘aspirations’ to move up the pecking order, having required to face stronger challenges and competition, resort to desperate but risky measures without much success, resulting in a negative risk-return association. The relatively superior performers within this group however, are successful in leveraging their current superior position and adopt risky but successful strategies. These overall patterns seem to be robust and stand good across full sample, across sub-samples based on age, size, leverage or time even after adjustment for industry and the firm’s own past performance.

Value-relevance of the regulatory non-GAAP adjustments in the Korean banking industry

ABSTRACTIAS 39 requires firms to use the incurred-loss model for bad debt expenses. However, the Korean Financial Supervisory Commission requires banks to record additional loan-losses based on the expected-loss model. These non-GAAP adjustments include adjustments to book values as well as net income. We examine the incremental value-relevance of these non-GAAP adjustments and fail to find incremental value-relevance over unadjusted IFRS net income. However, the non-GAAP book value adjustment does have a partial, incremental value-relevance over unadjusted book values of equity. In addition, the non-GAAP loan-loss adjustments required by regulators may be disclosed either on the face of the financial statements or in the notes, but the disclosure location also appears to lack value-relevance.

Antecedents of New Recruit's Adjustment

The transition of newly hired employees from educational institutes to the corporate world thrusts them into unfamiliar environments. The reality shocks during a new employee's early days can lead to behavioral withdrawal, interpersonal conflict, lack of work engagement, lack of productivity, dissatisfaction, and turnover. The purpose of this article was to explore the antecedents of new recruits' adjustment in the Indian IT industry. The study considered three antecedents: supervisor support behavior, psychological empowerment, and feedback-seeking behavior. Data was collected from 607 newly hired employees working in the Indian IT industry and was analyzed using structural equation modeling (SEM). The article highlights that supportive supervisors can encourage new employees to seek feedback and help them to ‘fit into' the organization. Managerial implications suggest that organizations conduct training programs to make managers more approachable and available for new recruits during their early days to ensure adjustment and engagement in the organization.

Friction and wear of the middle trough in scraper conveyors

PurposeThe study of the friction law and wear characteristics of the middle trough material can better select the appropriate material for the scraper conveyor of fully mechanized working face and provide theoretical support for the wear-resistant treatment technology.Design/methodology/approachThis paper investigated friction and wear of the middle trough in a scraper conveyor under different media. Lignite, coking coal and anthracite were selected media, and middle trough wear was maximum for anthracite and minimum for lignite, with coking coal being intermediate.FindingsWear increased linearly with increasing load nonlinearly with increasing sliding speed. Middle trough wear also increased with increasing media granularity up to approximately 0.4 mm (40 mesh), but had little effect beyond that.Originality/valueIt can provide a reference for the scraper conveyor running resistance. At the same time, it has great social significance and economic benefits for the safe, green and efficient coal mine industrial adjustment, etc.

Quantifying urban land expansion dynamics through improved land management institution model: Application in Ningxia-Inner Mongolia, China

It is of great importance to investigate mechanism of urban expansion as to policy-making and implementation of urban planning in China. The purpose of this study is to carry out a thorough investigation on quantifying dynamic process of urban land expansion through an improved Land Management Institution model (LMI), which was further applied in Ningxia-Inner Mongolia region, China. Therefore, an improved LMI model was developed by introducing the varying panel approach which can well determine the major contributors of spatial differences of urban land expansion and quantify the evolution of land management institution. Through this investigation, following findings were achieved. Firstly, the improved LMI model could efficiently quantify and determine spatial differences of endogenous factors of urban land expansion, and the land management institution evolution. The land management institution evolution presented a path dependence with a stable trajectory, which meant urban land expansion were well coincided with the evolution of land management institution. Secondly, the improved LMI model application in Ningxia-Inner Mongolia region disclosed that urban land expansion had an obvious negative effects of lock-in phase characters in land management institution evolution. Marginal effects of major influencing factors of urban land expansion contributed greatly to the differences of urban land expansion in terms of different sectors and regions. Finally, dynamics analysis of urban land expansion in this study area suggested that its urbanization had similar urbanization patterns with cities in elsewhere of China, and meanwhile it presented distinct characters. The massive conversion of land use has stimulated high-speed economic growth in the short term at the expense of eco-environment in the long term. It is suggested that governments at all levels should pay more attention to land management institution reform, industrial adjustment, technological innovation as to realize sustainable urbanization.

Supply-Side Structural Reform Related to the One-Stop Service of Beijing Sanlian Hope Shin-Gosen Technical Service Co., Ltd. (in Short for SLHP)

Supply can be divided into productive supply and commercial supply. The main reason for the supply-side structural reform is to enhance the productive forces, to solve the deep-rooted problems of the economic structure, to moderately control the expansion of supply and to adapt the development of demand by the flexible supply methods. Many innovative reforming modes and actual cases emerged during the supply-side reform of the upgrading and structural adjustment in the textile industries. In this article, based on the innovative application of one-stop service of SLHP, from the point of enterprise management innovation, the author comprehensively described the application and effectiveness of the supply-side structural reform in the textile industries.

Approach for a Risk Analysis of Energy Flexible Production Systems

The steadily growing share of volatile renewable energies in power generation poses a major challenge for energy producers and consumers. One possibility for increasing grid stability and thus the security of electricity supply is Demand-Side-Management (DSM). Since a load adjustment in the manufacturing industry is often followed by an intervention in the production process, logistic targets in production can be adversely affected. In order to evaluate the risk that occurs for energy flexible manufacturing companies, an approach based on existing evaluation methods is developed.

Coastal sand dune ecosystem services in metropolitan suburbs: effects on the sake brewery environment induced by changing social conditions

Chiba Prefecture, Japan, lies very near Tokyo, the capital city of Japan. It borders the sea on three sides and is banded by coastal dunes. Several sake breweries are located near these dunes. Although there are records of sake brewing along the coast of Tokyo Bay since 1925, sake breweries have completely disappeared in several areas. We believe that sake brewing in these areas benefited from the ecosystem services afforded them by their proximity to the coastal ecosystem. We investigated potential environmental factors (e.g., landscape, soil, and groundwater), as well as conditions that could have driven sake brewers away from the coastal area. Many of the sake breweries that no longer exist were located on coastal dunes (i.e., sand, sandbanks, and natural levees) and obtained their water from a freshwater layer located 3–10 m below the surface. We speculate that these sake breweries benefited from using natural ingredients found in the coastal zone. We also investigated the following factors that may have negatively impacted the breweries, driving them out of business: (1) bankruptcies and reconstruction difficulties that followed the destructive 1923 Great Kanto earthquake, (2) industrial wartime adjustments during World War II (1939–1945), (3) development of coastal industries during the period from 1960 to 1975, and (4) increasing choices for other alcoholic drinks (e.g., beer, wine, and whiskey) from the 1960s to the present.

The Industrial Adjustment Strategy Based on Technology Innovation Efficiency

In order to optimize the industrial structure, taking Shaanxi province as an example, this paper divides technology innovation efficiency into non-market orientation and market orientation by using the method of Stochastic Frontier Analysis (SFA), and also gives the analysis to the result of typical industries. The study shows: There is a significant difference in the technology innovation efficiency among different industries. The original innovation ability and the transformation ability of scientific and technological achievements are not coordinated, but overall technical innovation efficiency is on the rise. The efficiency of industrial technology innovation is not only affected by talent and capital investment, but also by the market environment and macro policy. Shaanxi province should play the dual role of market and policy, implement differentiated industrial policy, promote the upgrading of industrial structure adjustment, and enhance the financial subsidies to make the industries healthy, orderly and sustainable based on the efficiency of technological innovation of the industry's performance.

Promoting the Exploration of Organizational Reform on Human Resource Management

With the rapid development of industrial adjustment and economy, the shortage of talented personnel has gradually become the main factor limiting the development of enterprises, and the use of simple human resource management methods has failed to solve the problem of talented personnel management. This article summarizes the reform of human recourse management during its organizational reform through the study of organizational reform related to human resource management achievements. Combining with specific cases of successful application of organizational reform and its effect on talented personnel management, the authors conclude that organizational reform is another important method to solve the current problem of human resource management in enterprises.

Spatiotemporal analysis of land development in transitional China

This study investigates three types of land development in China, land for cities and towns, stand-alone industrial sites, and space devoted to transportation. Relying on shift-share analysis, spatial filtering and geographically weighted regressions, we find that the spatial patterns and underlying determinants of China's construction boom vary across subcategories and periods. City and town land development follows the administrative hierarchy, as it is especially pronounced in provincial capitals and centrally administrated municipalities, and is largely dependent on urbanization, passenger transport, and fixed assets investment. The proliferation of stand-alone industrial areas is mainly driven by the expansion of foreign direct investment, industrial adjustment, and the capacity of freight transport. Transportation land development is determined by the development of railway and highway systems as well as local economic development. Temporally, our results suggest that land development and its agglomeration accelerated from 1998 to 2002 to 2003–2008. Also, globalization had more influence during 1998–2002, whereas the role of decentralization and marketization became more significant in the period of 2003–2008.

Analysis of threshold cointegration with asymmetric adjustments in the Hong Kong grocery industry

ABSTRACTHigh market concentration in the Hong Kong grocery industry has been prevalent over many years with the domination of a few large supermarket chains. However, no research has been conducted on the price dynamics between the supermarket and non-supermarket sectors to investigate whether the non-supermarket sector can impose competitive discipline on the dominating supermarket chains. We argue that standard cointegration tests cannot allow for transaction costs and distinguish whether the price co-movement is attributable to price competition or collusion. Our study therefore fills this research gap by adopting the threshold cointegration tests in a three-regime threshold vector error-correction model to account for the asymmetric price adjustment dynamics between supermarket and non-supermarket sectors of Hong Kong and evaluate the market power of the supermarket sectors in the presence of transaction costs. Our results favour the presence of cointegration between the supermarket and non-supermarket price indices with asymmetric adjustment dynamics. We interpret the results of statistically significant downward price adjustments in the outer-band regimes as the evidence of mutual price competition. Nevertheless, the supermarket sector has stronger market power than the non-supermarket sector, and therefore can sustain higher price level without inducing substantial competition pressures inside the neutral band.

Comparative study on the optimization strategies of the human settlement environment of the rural settlements in Asia

There is a similar cultural background between Japan, South Korea and China. The construction of Japanese village has gone through three stages including conception, improvement and promotion, and that of Korean countryside has also experienced three stages of start-up, transformation and development. In the rural construction in both Japan and South Korea, government orientation has sped up the modernization of rural areas in the short term, but has gone against the law of development and the will of farmers in the long run. The key to rural construction is to improve the initiative and enthusiasm of farmers and to stimulate their sense of ownership. During the process of promoting the development of rural economy, we shall also pay attention to the improvement of farmers’ spirituality.From the experience of rural construction in Asia, the development of rural areas cannot be separated from the support and creativity of the villagers, and it is also the process of synchronous coordinated transformation of social culture instead of the single industry adjustment and space construction. The social benefits brought from the modern transformation and cultural activities of the villagers are beneficial to promote the sustainable development of modernization of agriculture and rural areas.

Deklarowana i rzeczywista polityka przemysłowa Polski w świetle danych o pomocy publicznej w latach 2007–2014

Celem niniejszego opracowania jest pogłębienie dyskusji o kierunkach polskiej polityki prze- mysłowej przez porównanie jej deklarowanych i rzeczywistych kierunków w latach 2007–2014. Autorzy opracowania zbadali w szczególności: skalę i strukturę wydatków na wsparcie branż przemysłowych w Polsce, a także dokonali analizy porównawczej kierunków zmian strukturalnych i deklarowanych celów polskiej polityki przemysłowej. W badaniach wskazano, że deklarowane kierunki polityki przemysłowej obejmowały m.in. podniesie poziomu technologicznego polskiej gospodarki, dopasowanie polskiego przemysłu do zmian strukturalnych w światowej gospodarce i podniesienie jego konkurencyjności. Przeprowadzone badania pozwoliły na wykazanie, że rzeczywista polityka przemysłowa, badana z perspektywy branżowych kierunków pomocy publicznej, nie odpowiadała w pełni deklarowanym celom polskiej polityki przemysłowej. Pomoc publiczna nie była kierowana do podmiotów produkujących dobra wysokiej czy chociażby średnio-wysokiej techniki, a do przedsiębiorstw działających w przemysłach średnio-niskiej techniki oraz podmiotów świadczących usługi rynkowe, tj. usługi detektywistyczne i ochroniarskie, transportu lotniczego oraz magazynowania i wspomagania transportu.

Gender Relations, Livelihood Strategies, Water Policies and Structural Adjustment in the Australian Dairy Industry

AbstractConcerns about water scarcity and consequent environmental impacts are driving major structural adjustment in the Australian irrigated dairy industry. This has resulted in government policy initiatives including water licence buybacks and grant schemes to improve water use efficiency. One consequence is the loss of many small farms and the development of larger technologically efficient farms with altered access to irrigation water. In farm families, who dominate the dairy industry, livelihood strategies, labour demands and the boundaries between traditional female and male spheres of labour are changing. We present findings from an Australian Research Council funded project examining the impacts of these changes on dairy families in the Murray Dairy region. We note that reshaped livelihood strategies and increased labour demands are further entrenching traditional gender relations and that labour is being re‐allocated in highly gendered ways. We note a ‘farmer‐manager’ role is evolving amongst male dairy farmers and a critical but less public role comprising significant input to labour tasks is evident amongst women on larger farms. Drawing on interviews with couples, most of whom were interviewed separately, we examine how gendered livelihood strategies are being reshaped at the same time as the significant contributions of women are being obscured.

京津冀一体化背景下河北省产业结构优化与金融支持的互动关系

京津冀一体化背景下，根据2000~2015年河北省经济年鉴的数据，对河北省产业结构优化率和金融相关率、金融效率指标进行时间序列分析和回归分析。分析结果表明，河北省产业结构优化率与金融相关率、金融效率指标之间存在长期均衡关系，但不存在因果关系。为实现河北省产业结构优化与金融支持的良性互动关系，需要扩展融资渠道，增加资本投放；支持保险业的发展，获得更多资金保障；加快农村金融机构改革，大力发展“绿色农业”；完善金融人才奖励机制，引进和培养高级金融人才。 Under the background of the integration of Beijing, Tianjin and Hebei Province, according to the data of 2000~2015 years of Economic Yearbook of Hebei Province, I use the time series analysis and regression analysis of the industrial adjusted rate to analyze the financial related rate and the financial efficiency index of Hebei province. The results show that there is a long-term equilibrium relationship between the industrial adjusted rate of Hebei province and the financial related rate and the financial efficiency index, but there is no causality. In order to realize the interactive relationship between the industrial adjustment and the financial support in Hebei Province, there are some measures: expanding the financing channels, increasing capital investment; supporting the development of the insurance industry, getting more funding; speeding up the reform of rural financial institutions and vigorously developing “green agriculture”; improving the financial talent incentive mechanism, introducing and training the senior financial personnel.

Chongqing Farm and Sideline Food Processing Industry Adjustment and Countermeasure Research

Chongqing Farm and Sideline Food Processing Industry Adjustment and Countermeasure Research

Antecedents and outcomes of migrant workers’ sociocultural adjustment in the hospitality industry

Migrant workers are an important part of the labor force for the hospitality industry in developed countries and emerging markets. The purpose of this study is to investigate the relationship between perceived organizational support (POS) and dominant cultural orientation (DCO), sociocultural adjustment (SCA), job satisfaction (JS), life satisfaction (LS), and turnover intention (TI) of migrant workers. This research uses a respondent-driven sampling (RDS) method with a dual incentive system to attain hard-to-reach migrant employees. The findings demonstrate that both POS and DCO have a significant and positive relationship with SCA and, interestingly, that POS has a stronger impact on hospitality migrants’ SCA than DCO. The findings also imply that although personal efforts of migrant workers are important for their effective socialization, positive support from a hospitality organization plays a far more important role. Furthermore, this study highlights the significant relationships between POS and JS and between DCO and LS. The findings also show that SCA had a significant and positive effect on LS and that hospitality migrants who adjust well in their host society tend to have a high satisfaction with their lives in the foreign country and are apt to stay longer in their positions.