Free download: https://www.ubscenter.uzh.ch/en/publications/public_papers.html
Ernst Fehr argues at the UBS Center Forum session on culture and economic prosperity that corporate culture is important because human behavior is always co-determined by the prevailing social norms.
Ernst Fehr is a Professor of Microeconomics and Experimental Economics at the Department of Economics at the University of Zurich and Director of the UBS International Center of Economics in Society. He is a former president of the Economic Science Association and of the European Economic Association, honorary member of the American Academy of Arts and Sciences, and John Kenneth Galbraith Fellow of the American Academy of Political and Social Sciences.
Ernst Fehr’s research interests include social and biological foundations of human motivation, the effects of social and economic incentives on human behavior, and the optimal design of contracts and institutions.
In his UBS Center Public Paper, Ernst Fehr argues that corporate culture is important because human behavior is always co-determined by the prevailing social norms. It is in the company’s interest to shape these norms through a cooperative culture that mobilizes employees’ voluntary cooperation in the pursuit of the firm’s performance goals.
There are many views and opinions on what a good corporate culture is like. But they often lack a sound understanding of what drives behavior in a company. Experimental and behavioral economics sheds light on the underlying decision-making processes and helps managers to positively influence their employees’ behavior. Based on scientific data, it provides answers to questions such as which rules and incentives are needed for a successful corporate culture, how can we limit free-rider effects, and how can we foster productive and constructive cooperation among employees?
Fehr research: https://www.ubscenter.uzh.ch/en/research/members/fehr.php
Event info: https://www.ubscenter.uzh.ch/en/events/forum/2018.html
#UBSCenterForum #EconomicsForSociety #UniversityOfZurich
Although foreigners may now invest in A-shares, there is a monthly 20 percent limit on repatriation of funds to foreign countries.
Performance of A-shares.
Since its inception in 1990, including a major reform in 2002, the index has seen great fluctuations. Overall, however, it has grown along with the Chinese economy. The years 2015 to 2016 were a particularly difficult period, with a 52-week performance of -21.55 percent as of July 20, 2016.
As China grows from an emerging market to an advanced economy, there is substantial demand for Chinese equity. Stock exchange regulators continue efforts to make A-shares more broadly available to foreign investors and have them recognized by the global investing community.
In June 2017, the MSCI Emerging Markets Index announced a long-awaited decision it would add stocks to its index. According to CNBC, MSCI will add 222 China A Large Cap stocks to its benchmark emerging markets index gradually beginning in 2018. The MSCI website reveals the stocks it will list include the Bank of China, China Merchants Bank, Guotai Junan, Ping An Insurance, according to a document on Tsingtao Brewery, SAIC Motor, Suning Commerce and Spring Airlines.
Current Dividend Preference.
Participating Preferred Stock.
Convertible Preferred Stock.
Cumulative preferred stock includes a provision that requires the company to pay preferred shareholders all dividends, including those that were omitted in the past, before the common shareholders are able to receive their dividend payments.
Non-cumulative preferred stock does not issue any omitted or unpaid dividends. If the company chooses not to pay dividends in any given year, the shareholders of the non-cumulative preferred stock have no right or power to claim such forgone dividends at any time in the future.
Participating preferred stock provides its shareholders with the right to be paid dividends in an amount equal to the generally specified rate of preferred dividends, plus an additional dividend based on a predetermined condition. This additional dividend is typically designed to be paid out only if the amount of dividends received by common shareholders is greater than a predetermined per-share amount. If the company is liquidated, participating preferred shareholders may also have the right to be paid back the purchasing price of the stock as well as a pro-rata share of remaining proceeds received by common shareholders.
Significance to Investors.