Information functions - Free Essay Example

Sample details Pages: 21 Words: 6222 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Essay any type Did you like this example? 1. Introduction Information functions as the core of capital market in the sense that all sides of market participants make decisions based on their accessible information sets. As one of the major sources of information in public equity market, company financial reporting lies in the center of company performance relevant information set and is the basis of most investors analysis and decision-making process. Don’t waste time! Our writers will create an original "Information functions" essay for you Create order ‘Fundamental analysis is how people usually refer to for this kind financial performance information analysis, and it is critical especially to long-term value stock investors who have much heavier reliance on analyzing ‘fundamentals among other factors than short-term investors to implement investment strategy. At the same time, multiples including price to earnings (P/E) or price to book (P/BV) are two most commonly used metrics now in assisting the ‘fundamental based investment decision-making. Studies on the value relevance of company financial indicators or multiples become potentially interesting from a value investor perspective. There had been some studies along the above-mentioned directions and especially together with the fact of segmented Chinese stock markets, in an effort to derive implications on asset pricing or potential trading strategies by looking at price or return premium for dual-listed companies as well as value relevance with accountin g information for Chinese listed company. Key research from these various angles, which will be reviewed in more detail in later section, gave some insightful findings although empirical findings may not always be consistent due to different research design or samples difference. There is still considerable space for further research to contribute. By taking up one specific angle, this paper aims to provide more recent evidence on Chinese dual-listing return association with the two multiples (P/E and P/BV, the inverses are used in the model) in the condition of segmented Chinese share market. Most prior studies were conducted based on AB dual-listing samples, and not so much recent similar studies were done on AH dual-listed share samples. This paper therefore looked at Chinese dual-listed companies on A and H share market to supplement this less researched area. Another reason why a AH dual-listing study can be more practically interesting than that on AB dual-listings is due to t he fact that B share market was far less liquid as H share market thus less meaningful for most investors. The paper is organized as follows. Section 2 discusses the background of this study, including introductions of Chinese stock market especially A and H share markets, followed by a sub-section introducing Chinese accounting and auditing system. Section 3 reviews prior research on stock value relevance of company financial information given market segmentation as well as return predictability based on price multiples. Hypotheses and assumptions of this paper are derived accordingly Section 4, elaborated with Section 5 and 6 on data and research methodology respectively. The last section reports the empirical results and provides explanations for the results. References for this research are listed in the appendix. 2. Background 2.1 China A and H stock market Chinese stock market has been segmented ever since 1991 when the first stock exchange opened in Shanghai, along with its gradual development path was †¦(brief history) Currently there are four major types of shares in Chinese corporations, namely government shares, legal entity shares, employee shares and traded shares which further comprise of A-shares, B-shares, H-shares and N-shares. Differences among these shares mainly lie in the ownership restrictions, as further demonstrated in Table XX. The ownership restrictions therefore create another layer of segmentation on top of the investment barrier the central government set between mainland China stock market as a semi-open market and Hong Kong stock market as an international market. The long term direction of Chinese capital market reform is towards a more integrated and open market, and the Chinese government had carried out a series of important barrier releasing actions including ‘Reform of Non-tradable Shar es in A share market that aims to release the trading restrictions on government shares and legal entity shares. Removal of certain restrictions laid between markets, for example, impoving A and B share market integration by allowing mainland China investors buying B shares directly, had also been good example of Chinese capital market liberalization. However, the not yet integrated market of A and H shares and investment strategy implications of it is the focus of this paper. Table XX. Comparison of main Chinese stock markets Exchange Investor Currency Settlement A share Shanghai Stock Exchange (SSE) Domestic individual investor (mainland China citizens), institutional investors including QFII CNY T+1 Shenzhen Stock Exchange (SZSE) B share Shanghai Stock Exchange (SSE) Foreign and domestic (opened to domestic individuals since Feb 2002) individual or institutional investors USD T+3 Shenzhen Stock Exchange (SZSE) H share Hong Kong Stock Exchange (HKSE) All investors in HKSE, except for China mainland individual investors, who can only indirectly invest through mainland QDII HKD T+0 T+2 HKSE SSE SZSE No. of listed companies Market cap No. of listed companies Market cap No. of listed companies Market cap 1,426 2,751,672 905 2,905,570 1246 1,336,394 (no. of H shares: 163) Note: market cap in USD, all numbers are those as of 31 Mar 2011. B share market became a more integrated market with A share market after the policy change allowing domestic individual investors trading B shares in Feb 2002. H share market used to see a similar policy ease on allowing domestic individual investor buy Hong Kong listed shares (including H shares) directly through a program called ‘Hong Kong Stock Express, however the program was halted after being implemented for a while in the concern of over-release of Chinas capital account. Cautious but progressive efforts were being made after that to further strengthen the integration of Hong Kong and mainland China capital markets, but so far Chinese mainland investors can only directly invest in H shares through certain institutional investors authorized as qualified domestic institutional investors (QDII). Mainland Chinese companies have significant presence in Hong Kong stock market. As of March 2011, there are 163 H shares (companies incorporated in mainland China and listed in Hong Kong), 103 red chip stocks (companies incorporated outside China and listed in Hong Kong), and 334 Non-H share mainland private enterprises, totaling 57.2% of market capitalization and 65% equity turnover in Hong Kong stock exchange. 66 of the 163 H shares have dual-listing in mainlands two A share markets, called A-H companies. These A-H companies are the basis of the empirical study sample of this paper. Table XX Mainland Enterprises (Main Board and GEM) No. of H shares 163 No. of Red chips Stocks 103 No. of NHMPE 334 Market capitalisation (% of market total) 57.20% Turnover value (% of equity turnover) 65.00% Note: 1) NHMPE = Non-H Share Mainland Private Enterprises. 2) March 2011, Month-end figures 2.2 China accounting and auditing practices for A and H shares Companies that issue A- and H-shares follow different financial reporting systems, under which share companies prepare reports under PRC GAAP (ABSE) that are audited by local CPA firms, while H share companies prepare reports under and the International Financial Reporting Standards (IFRS) (IFRS) or Hong Kong GAAP that are audited by international auditors (Big 4). AH dual-listing companies have to file financial reports under both systems until December 2010, when, Hong Kong Stock Exchange announced accepting H share companies reporting under Chinese GAAP as a way of reducing company compliance costs. Differences between Hong Kong GAAP and IFRS is minimal since 2005 except for a few minor differences (Deloitte 2005), when great efforts were made to integrate Hong Kong GAAP and IFRS. Differences between PRC GAAP and IFRS are bigger than that of Hong Kong GAAP and IFRS, therefore in many cases, key company financials such as earnings or net assets appear differently in the same f inancial reports. This, together with segmented A and H share markets provide a practical need for research conducted in this paper. The latest approved one system reporting/auditing regulation by HKSE removed the policy barrier financial reporting gap now existing among AH companies, and it is expected that in the long run more AH companies will only adopt PRC GAAP to cut their compliance costs. However in the short term this policy will not change current practice of the majority AH companies mainly due to their concern on whether international investors can adapt well to the PRC GAAP reporting instead of IFRS reporting. As of 18 April 2011, only about 10% of the small and medium-sized AH companies shifted towards PRC GAAP reporting only (Sina.com.hk news), big companies took a wait-and-see strategy and mostly had concern on investors negatively interpret them shifting to one accounting system only immediately. Table XX. Comparison of accounting and auditing practise in Chinese stock markets Share Accounting standard Auditors A-shares PRC GAAP ocal auditing firms B-shares IFRS International auditing firms H-shares IFRS/HK GAAP International auditing firms AB-shares PRC GAAP IFRS dual reporting ocal CPA international auditing firms AH-shares PRC GAAP IFRS/HK GAAP dual reporting ocal CPA international auditing firms 3. Previous research 3.1 Chinese stock market segmentation and A-H share premium disparity There had been considerable amount of literature on how market segmentation affected share price premium for multi-listings. Empirical studies on this issue usually found out that countries where ownership restrictions of stocks exist, the foreign shares is trading at a price premium over the domestic counterpart shares. Countries of such example include Finland (Hietala, 1989), Thailand (Bailey and Jagtiani, 1994), Switzerland (Stulz and Wasserfallen, 1995), and Mexico (Domowitz et al., 1997). However the case for China is reversed in the way that Chinese foreign shares had been trading at price discount over domestic counterpart shares (Bailey, 1994; Su, 1997; and Fernald and Rogers, 1998). Reasons for Chinese foreign share price discounts were researched also, including four major hypotheses: Differential risk hypothesis, which assumes that foreign investors require lower risk premium than domestic investors on an unrestricted stock (Hietala 1989); Differential demand hypothesis , which assumes different stock demand elasticity facing different investor groups; liquidity hypothesis which is based on stocks traded with varied liquidity leve, and information asymmetry hypothesis addressing premium caused by information gap. Most literature research that test these hypotheses were based on empirical studies on A and B share market rather than A and H share markets but a few recent studies had provided more evidence on A and H share comparative studies which also laid out foundations for this paper. On what makes A and H share markets segmented, Wang and Jiang (2004) and Li et al. (2006) argue that stock ownership as well as listing and trading locations manifests the kind of segmentation between the A- and H-share markets. Hing-Wah Lee (2009) reinvestigated the liquidity hypothesis following a market-microstructure approach, and found out that first, China A-shares on average provide better market liquidity than their Hong Kong H-share counterparts do. S econd, after controlling for traditional liquidity measures and variables related to competing hypotheses, the percentage differences in quoted spread and depth between A-shares and H-shares still explain significantly the price premium. 3.2 Value relevance of company financials The effect of different accounting systems along with Chinas segmented share market had been researched in the past decade. And most of the research made efforts to address the issue of value relevance of accounting information in China as one of the emerging markets. There were mainly two types of models that were used, price model and return model (Ball and Brown, 1968; Collins and Kothari, 1989; Kothari and Zimmerman, 1995; Kothari, 2001) that used share price or return as dependant variables on a series of independent financial variables such as earnings and book value of equity. Evidence was found to support A share value relevance of earnings reported under PRC GAAP from studies including Haw et al. (1999) on their price model built on entire population A-share during 1994 and 1997, and Chen et al. (2001) with both price and return model built on a sample of A share companies during 1990 and 1997, who also found that the Chinese stock market perceives accounting information t o be more value-relevant for ?rms issuing both A- and B-shares than ?rms issuing only A-shares. Further researches that examine A, B share markets at the same time and found that along with A-share accounting information, the estimated B-share prices from the IAS model are signi?cantly related to the actual B-share prices, indicating that the IAS model has additional explanatory power over that contributed by PRC GAAP model (Bao and Chow, 1999). Hu (2002) used sample companies only listed on Shanghai Stock Exchange to replicate Hu (2002)s methodology but found opposite evidence that book value and earnings reported under PRC GAAP are more relevant than those based on IFRS. Samia and Zhou (2004) studied on AB dual-listed companies from 1994-2000 and obtained evidence that the accounting information in the B-share market is more value-relevant. Liu and Liu (2007) provided multi-faceted insights on the value relevance issue in the Chinese stock market with more comprehensive analysis o n data from 1999 to 2003. They found that accounting information issued by B-share and H-share companies that is prepared and audited under IFRS/H.K. GAAP is more value relevant than that prepared under PRC GAAP of the A-share ?rms. In addition, by further examining the A-share market, they ?nd that during the bearish market situation (since 2001), the incremental explanatory power of accounting information for equity book value increases, whereas it decreases for earnings. Within the A-share market, no signi?cant difference of the value relevance of accounting information can be found among only-A-share, AB- and AH-share subgroups. 3.3 Return explanation based on price multiples The earliest and most well-known model to explain stock return difference was the Capital Asset Pricing Model (CAPM) built on the Markowitz paradigm, by assuming that expected return of any risky assets linearly depend on its co-movement with the market portfolio. However after the development of CAPM model in 1960s, there were some cross-sectional studies on stock returns showing contradicting results against what CAPM model predicted, supported by large sample tests with the help of a few well-developed databases such as Compustat. Additional factors were found to explain stock return differences such as earnings/price, firm size, long-term return reversals, book-to-market equity, leverage and momentum. Another model developed by Fama and French (1992) synthesized empirical findings of some of these factors (size, leverage, book-to-market equity and beta) in a single one, although the model and the findings received some criticisms later on such as that the empirical finding was a result of data-mining (Black 1993a, 1993b), and/or there was survivorship bias in the sample used as well as beta mis-measurement (Kothari, Shanken and Sloan, 1995). Despite these controversies, more and more research seem to support the effect of other factors initiated in Fama and French (1992) model and the research focus shifted to explain why there are other factors explaining stock return. The Fama and French (1993) three-factor model found results supporting two additional factors besides access return specified in CAPM model, namely SMB based on investment strategies of long in small-cap stocks and short in large-cap stocks, and HML based on long in high book-to-market equity stock (value stocks) and short in low book-to-market stocks (growth stocks). And the three-factor regression reported significant coefficients on all three factors and improved R-square than a CAPM model. Research on finding the new factors to be priced by the market had not ceased since then and ne w models were tested against different markets outside the US. 4. Hypothesis Assumptions The author believes that given the capital market control and segmentation in China, the existing significant price or return disparity among segmented stock markets indicate potential arbitrage opportunities although other factors like investment barrier and transaction costs etc need to be taken into account when it comes to practical strategies. A wide range of literature had studied on finding out explanations for the disparity; however these are not the focus of this paper. Specifically, the paper tries to take the return disparity as given and examine how financial information (valuation multiples P/E and P/B) of AH dual-listed companies can be used for interpreting A and H share returns separately and jointed as AH return premium/discount. Although AH dual-listed companies had financial statement reports under both PRC GAAP and IFRS therefore information under both systems are accessible to all investors, it is assumed that international investors mainly use company finan cial reports under IFRS and domestic investors use that under PRC GAAP for the purpose of convenience and comparability with international and other A-listing domestic peers. Concerns of most AH companies on shifting to a single-system reporting stopped them to do so indirectly reflected that reporting under IFRS or HKGAAP is heavily relied on by international investors on H share markets. While in A-share markets, domestic investors heavily rely on PRC GAAP reporting. This situation is not likely to change swiftly and the convergence of all accounting stands sees only in the longer term. This paper takes the assumption of Chinese stock market being a weak-form-efficient market (Sun, Zhang, Zhou, 1997; Chen, Chen, Su, 2001). And it further assumes that information such as financial reporting is useful for investment decisions and is taken advantage of to predict future stock return (Francis Schipper, 1999). Therefore the key hypothesis of this research is that financial inform ation of A-H dual-listed companies can be taken advantage of to predict return in each market, and that arbitrage opportunities emerged from AH return premium/discount exist partially for the reason of financial reporting disparity within the same dual-listed company who faces different groups of investors on each market it lists in. 5. Data Sample selection 66 AH dual-listed companies are the focus of this research, therefore are set as the initial sample. Semi-annual stock return and company financial EPS and BPS (every 6-months) are collected for period 2002 first half (2002 S1) to 2010 first half (2010 S1). However some additional criteria are added on top of these sample companies to get the final sample data, for technical purposes. These criteria include: Financial sector companies (banks and insurance companies) are excluded due to that certain financial attributes may distort financial information of total sample where non-financial companies are majority. Same length of data points over time and entities are needed for a highly balanced panel dataset and a consistent comparison, however not all 66 companies are included in the sample due to that the AH companies have different listing time in A share and Hong Kong share market. Therefore AH companies that have long periods data missing on any of the variables are excluded. Filtering on these two criteria left a sample of 26 AH companies with A and H share prices (returns) respectively over a semi-annum period, 6-month earnings per share (EPS) and book value of equity per share (BPS) over the period of June 2002 to June 2010. The financials disclosed under PRC GAAP and IFRS were collected for A shares and H shares respectively. Variables are further outlined as below in Table X-X: Table X-X. Summary of variables 2002 S1 2002 S2 A/H share price/return Price: A/H share price as of 30 June 2002 Return: A/H share 6-month simple return over the period of 31 Dec 2001 to 30 June 2002 Price: A/H share price as of 31 Dec 2002 Return: A/H share 6-month simple return over the period of 30 June 2002 to 31 Dec 2002 A/H share EPS A share EPS: Earnings per share (January to June) of the company under PRC GAAP H share EPS:Earnings per share (January to June) of the company under IFRS or HKGAAP A share EPS: Earnings per share (June to December) of the company under PRC GAAP H share EPS: Earnings per share (June to December)of the company under IFRS or HKGAAP A/H share BPS A share BPS: Book value of equity per share (January to June) of the company under PRC GAAP H share BPS: Book value of equity per share (January to June) of the company under IFRS or HKGAAP A share BPS: Book value of equity per share (June to December) of the company under PRC GAAP H share BPS: Book value of equity per share (June to December)of the company under IFRS or HKGAAP In addition, the whole sample is divided into two periods, before and after the global financial crisis (start time taken as June 2008). Post-crisis sample is taken out and only pre-crisis sample is used for a comparative study with the full sample to see whether and how much the empirical results are influenced by the crisis. Descriptive statistics of all variables used are summarized in Table XX Table XX. Statistical summary of variables A share Full period Variable Obs Mean Std. Dev. Min Max areturn 442 0.107 0.478 -0.692 2.922 aep 439 0.013 0.091 -1.531 0.202 abp 436 0.458 0.305 -0.652 1.739 Pre-crisis period Variable Obs Mean Std. Dev. Min Max areturn 338 0.104 0.470 -0.692 2.922 aep 335 0.016 0.092 -1.531 0.202 abp 332 0.474 0.296 -0.526 1.476 H share Full period Variable Obs Mean Std. Dev. Min Max hreturn 442 0.168 0.500 -0.677 2.557 hep 442 0.014 0.244 -3.552 0.348 hbp 442 1.053 0.901 -2.612 6.588 Pre-crisis period Variable Obs Mean Std. Dev. Min Max hreturn 338 0.172 0.493 -0.677 2.557 hep 338 0.026 0.212 -3.552 0.348 hbp 338 1.109 0.871 -1.196 5.071 A simple correlation summary among all variables used is given in Table XX, for both pre-crisis and full period sample. Table XX. Variable correlation table A and H variable correlation table Full period (obs=433) areturn hreturn hep hbp aep abp areturn 1 hreturn 0.739 1 hep 0.051 0.082 1 hbp -0.283 -0.229 0.171 1 aep 0.041 0.079 0.935 0.133 1 abp -0.294 -0.178 0.245 0.626 0.296 1 Pre-crisis period (obs=329) areturn hreturn hep hbp aep abp areturn 1 hreturn 0.705 1 hep 0.025 0.050 1 hbp -0.337 -0.243 0.133 1 aep 0.032 0.069 0.952 0.098 1 abp -0.286 -0.115 0.222 0.580 0.287 1 6. Methodology The general fundamental model developed is a series of regressions with stocks returns (next period 6-month return or current period 6-month return) being dependant variable and explained by the inverses of commonly used valuation multiples P/E and P/BV, i.e. E/P and BV/P. Three different models are constructed by taking both time and cross-sectional dimensions into account, to explore relationships between current period return and current price multiples (inversed), future period return and current price multiples (inversed) as well as return premium and price multiples (inverse) gaps. Panel data analysis is applied to each model, elaborated in details as below. 6.1 Choice of panel data model According to Cheng Hsiao (2006), â€Å"panel data have several advantages over cross-sectional or time-series data by blending the inter-individual differences and intra-individual dynamics. The advantages include more accurate inference of model parameters (Hsiao, Mountain and Ho-Illman, 1995), greater capacity for capturing complexities, and simplifying computation and statistical inference in certain cases.† There are two major types of panel data regressions, fixed-effects (FE) model and random-effects (RE) model, depending on whether ‘unobserved heterogeneity in the panel sample is assumed as random variables or fixed parameters. FE and RE specification has its own advantages and limitations, for instance FE specification can allow individual and/or time specific effects to be correlated with explanatory variables but does not allow estimation of time-invariant coefficients while RE specification allow estimation of time-invariant variables impact by imposing a â €˜conditional density assumption (Hsiao, 2006). The choice of FE or RE model in this paper is made with the help of a statistic developed by Hausman (1978) and can be tested under chi-square distribution assumption. Null hypothesis under the Hausman test is that difference in coefficients under FE and RE specification are not systematic, and rejection of the null needs the constructed statistic which follows chi-square distribution is significantly different from zero. STATA command ‘hausman is used to implement the Hausman test on the sample panel regressions to decide whether FE or RE model should be used in this study. For all panel datasets used, test results identify the suitability of FE specification rather than RE specification therefore FE regressions are used in all three models specified for parameter estimation. 6.2 Current period return model To test if current E/P ratio and BV/P can explain current period (6-month) return in A and H share market respectively. Supposedly companies with higher E/P and BV/P should see higher next period returns. H0: current E/P and BV/P ratio cannot explain current return differences among AH companies, i.e. beta coefficients are not significant for both A and H sample companies The current period return model is specified as: ri,tA=?A+?1AEi, tAPi, tA+?2ABVi,tAPi,tA+ui,t ri,tH=?H+?1AEi, tHPi, tH+?2HBVi,tHPi,tH+ui,t ri,tA: semi-annual return of A share for company i at time t. ri,tH: semi-annual return of H share for company i at time t. Ei, tAPi, tA: 6-month earning price ratio for company i A-share at time t. BVi,tAPi,tA: 6-month book value price ratio for company i A-share at time t. Ei, tHPi, tH: 6-month earning price ratio for company i H-share at time t. BVi,tHPi,tH: 6-month book value price ratio for company i H-share at time t. ui,t: error term t : discrete time variable with semi-annual frequency i: AH company Both pooled regression and Fixed-effect regression are run respectively on A and H shares first for (1) full period 2002 S1 to 2010 S1 (2) pre-crisis period 2002 S1 to 2008 S1. 6.3 Return prediction model To test if current E/P ratio and BV/P ratio can predict next period (6-month return) in A and H share market respectively. H0: current E/P and BV/P ratio cannot explain not next period return differences among AH companies, i.e. beta coefficients are not significant for both A and H sample companies The return prediction model is specified as: ri,tA=?A+?1AEi, t-1APi, t-1A+?2ABVi,t-1APi,t-1A+ui,t ri,tH=?H+?1AEi, t-1HPi, t-1H+?2HBVi,t-1HPi,t-1H+ui,t ri,tA: semi-annual return of A share for company i at time t. ri,tH: semi-annual return of H share for company i at time t. Ei, t-1APi, t-1A: 6-month earning price ratio for company i A-share at time t-1. BVi,t-1APi,t-1A: 6-month book value price ratio for company i A-share at time t-1. Ei, t-1HPi, t-1H: 6-month earning price ratio for company i H-share at time t-1. BVi,t-1HPi,t-1H: 6-month book value price ratio for company i H-share at time t-1 ui,t: error term t: discrete time variable with semi-annu al frequency i: AH company 6.4 Return premium model See if return premium of both current and next period can be partly explained by (1) E/P and B/P in either market (2) A and H gap in E/P and B/P H0: current differences on E/P and BV/P ratio between AH companies cannot explain current or next period return differences among AH companies, i.e. beta coefficients are not significant for both AH sample companies The return premium models are specified as below: (1) Current period return premium: ri,tA-ri,tH=?t+?1Ei, tAPi, tA-Ei, tHPi, tH+?2(Bi, tAPi, tA-Bi, tHPi, tH)+ui,t (2) Next period return premium: ri,tA-ri,tH=?t+?1Ei, t-1APi, t-1A-Ei, t-1HPi, t-1H+?2(Bi, t-1APi, t-1A-Bi, t-1HPi, t-1H)+ui,t In all above three models, both pooled regression and Fixed-effect regression are run respectively on A and H shares for result comparison from a technical perspective. FE regression remedies the problem of unobserved heterogeneity in pooled OLS regression and should give more accurate parameter estimation. The same regress ions are also done for two samples (1) full period 2002 S1 to 2010 S1 (2) pre-crisis period 2002 S1 to 2008 S1, in order to detect whether estimations change with the inclusion of financial crisis period data. 7. Empirical results Interpretation of variables Inverses the two multiples P/E and P/BV are used as independent variables in all the models, therefore it can be useful to first make it clear on how these independent variables, i.e. E/P and BV/P could be interpreted. E/P ratio Multiple P/E can be interpreted as how much price an investor is willing to pay per dollar of earnings. A high P/E multiple indicates investors expectation of high earning growth in the future for the concerning company because otherwise the marking is over-paying for the company. Therefore a high E/P ratio reflects investors expectation of low earning growth because every dollar an investor pays for the stock is backed up by more dollars of earnings. But these stocks may represent value stocks that are ‘good buy because one can probably pay lower market price for company with good profitability. In conclusion: High E/P indicates low earning growth expectations and possibility of value stocks BV/P ratio Multiple P/BV can be interpreted as how much price an investor is willing to pay per dollar of tangible net asset of a company. A high P/BV multiple indicates high market expectation of cash flow that the company assets can generate in the future in the concerning company (yet again high future growth). Therefore a high BV/P ratio reflects low market expectation and valuation of the company net assets. But similar to high E/P ratio stocks, these high BV/P stocks can also imply ‘good buy because one can probably pay lower market price for the same value of net assets. In conclusion: High BV/P indicates low net asset valuations and possibility of value stocks 7.1 Current return model Fixed-effect model gives improved the fitness and parameter estimation though the results show largely same relationship as in the pooled OLS regression, FE model results should be relied on rather than those of pooled regression. Pre-crisis sample (2002 S1 to 2008 S1) results are looked at first since this excludes the possible disturbing factor due to the extreme market situation. In general, the E/P ratios turn to be insignificant in relation to share returns while BV/P ratios hold to be significantly negatively relevant to both A and H share returns. The negative coefficient of BV/P on share return might seem counter-intuitive at first sight. However, note that in the current return model, share return was actually return over the past 6 months, and BV/P are taken as of the current moment ratio with company current book value and price. With book value held the same, companies with higher BV/P have lower current price, which translates to lower past 6-month return. Table XX: Current model regression results with pre-crisis sample Pre-crisis sample A share (Pooled) A share FE R-squared = 0.0958 R-sq: within = 0.1668 coef p coef p aep 0.635 0.003 aep 0.444 0.132 abp -0.514 abp -0.863 _con 0.342 _con 0.512 H share (Pooled) H share FE R-squared = 0.0666 R-sq: within = 0.0918 coef p coef p aep 0.193 0.001 aep 0.095 0.466 abp -0.145 abp -0.202 _con 0.327 _con 0.393 Comparing the coefficients for A and H share FE regressions, one can see that A share return has higher relevance (higher absolute value of coefficients) with BV/P under PRC GAAP rule than that of H share return with BV/P under IFRS. This partially reflects a more efficient H market than A share market, in that H share investors cannot use AH company valuation ratios as much as A share investors can do in screening potential well performing AH companies. When applying the model on full period (2002 S1 to 2010 S1) samples, there is still significant relationship between current period A or H share return and BV/P ratios under respective financial reporting rule. However E/P ratios turn to be significant as well while implying a positive relationship between E/P and current period returns, reason for this could possibly be significantly disturbed price information during crisis period. Table XX: Current model regression results with full sample Full sample A share (Pooled) A share FE R-squared = 0.1047 R-sq: within = 0.1721 coef p coef p aep 0.742 0.004 aep 0.666 0.010 abp -0.529 abp -0.881 _con 0.344 _con 0.507 H share (Pooled) H share FE R-squared = 0.0680 R-sq: within = 0.0861 coef p coef p aep 0.254 0.002 aep 0.235 0.020 abp -0.140 abp -0.191 _con 0.311 _con 0.366 The coefficients estimated with A share sample are still bigger in absolute values than those of H share samples, also supporting a more efficient H share market conjecture as in pre-crisis sample. 7.2 Return prediction model Results based on pre-crisis sample show that current company valuation ratio BV/P can be used to predict next period (6-month) return of AH companies, given the significantly positive coefficients on BV/P for both A and H share regressions. Higher BV/P ratio indicates higher next period return and this positive relationship is higher for A shares than for H shares. However E/P ratios turn to be insignificant in predicting both share-returns. Table XX: Return prediction model regression results with pre-crisis sample Pre-crisis sample A share (Pooled) A share FE R-squared = 0.0253 R-sq: within = 0.0378 coef p coef p aep -0.019 0.932 aep -0.158 0.629 abp 0.264 0.012 abp 0.425 0.001 _con -0.044 0.460 _con -0.118 0.066 H share (Pooled) H share FE R-squared = 0.0351 R-sq: within = 0.0564 coef p coef p aep 0.117 0.362 aep 0.029 0.833 abp 0.103 0.002 abp 0.164 _con 0.028 0.509 _con -0.037 0.461 The full sample analysis results are in line with those with pre-crisis sample analysis, except for that BV/P coefficients for A share return rise much more significantly than those for H share return from pre-crisis sample to full sample. This indicates that with period that exceptional market condition occurs, investors would be able to rely more on fundamental financial ratios in stock picking than during normal market conditions, and this is more true in A share market than in H share market. Table XX: Return prediction model regression results with full sample Full sample A share (Pooled) A share (FE) R-squared = 0.0295 R-sq: within = 0.0508 coef p coef p aep -0.333 0.077 aep -0.400 0.150 abp 0.283 0.002 abp 0.477 _con -0.017 0.722 _con -0.106 0.043 H share (Pooled) H share (FE) R-squared = 0.0357 R-sq: within = 0.0378 coef p coef p aep -0.085 0.285 aep -0.134 0.189 abp 0.106 abp 0.165 _con 0.057 0.115 _con -0.004 0.913 7.3 Return premium model There are some research explaining dual-listed company price/return premium with hypothesis of liquidity, demand and speculative investors etc. However, the author believes it also makes sense to test whether the return disparity can be partly attributed to the gap of financial reporting figures for the same dual-listed company due to segmented financial reporting rules and separation of investor group. Results based on the specified model show that the gap of financial ratios E/P and BV/P cannot explain current A-H return disparity but BV/P can explain and be used to predict next period A-H return disparity. And the results hold true for both full sample and pre-crisis sample only as well, and the prediction relevance is significantly higher in pre-crisis period only. Table XX: Return premium prediction model regression results Full sample Pre-crisis sample (pooled) (FE) (pooled) (FE) A-H return A-H return A-H return A-H return R-squared = 0.0800 R-sq: within = 0.1239 R-squared = 0.1292 R-sq: within = 0.1877 coef p coef p coef p coef p a_hep 0.111 0.914 a_hep 0.105 0.602 a_hep 0.083 0.494 a_hep 0.020 0.899 a_hbp 0.026 a_hbp 0.026 a_hbp 0.178 a_hbp 0.251 _cons 0.023 0.412 _cons 0.022 0.015 _cons 0.049 0.064 _cons 0.095 0.001 Table XX: Current return premium model regression results Full sample Pre-crisis sample (pooled) (FE) (pooled) (FE) A-H return A-H return A-H return A-H return R-squared = 0.0016 R-sq: within = 0.0014 R-squared = 0.0020 R-sq: within = 0.0027 coef p coef p coef p coef p a_hep 0.051 0.095 a_hep 0.058 0.604 a_hep 0.054 0.483 a_hep -0.016 0.928 a_hbp 0.019 0.890 a_hbp 0.013 0.644 a_hbp 0.019 0.428 a_hbp 0.030 0.365 _cons 0.025 0.018 _cons -0.053 0.029 _cons -0.055 0.077 _cons -0.048 0.108 Conclusion This paper take up a specific angel looking into value relevance of two price ratios among Chinese AH dual-listed companies, given current stock market segmentation. Firstly an introduction of Chinese stock market and differently applied financial reporting rules in segmented markets were given, followed by a review section of prior research on relevant issues, including market segmentation and dual-listed stock price/return disparity, value relevance of accounting information and stock return predictability across individual shares. Three fixed-effects models were constructed to explore the relationship between price ratios and stock returns on A and H market respectively, and a comparison of results is done on both pre-crisis samples and full period samples to shed light on the possible impact of recent financial crisis. It was found out that: Current E/P and BV/P explains current period return of both A and H shares, with E/P positively and BV/P negatively relates to current period return among AH companies. Current BV/P can predict next period return for both A and H shares, and it is a positive relationship. Current E/P and BV/P gap under two financial reporting rules cannot explain the current A-H return disparity, but current BV/P gap under two financial reporting rules can predict next period A-H return disparity A share returns show higher relevance with E/P and BV/P ratios than H share returns do in general, reflecting a less efficient A share market. Crisis period twist the informational efficiency of markets and impact the relevance of E/P to current return and B/P to next period return. Limitation and possible future research This paper found out some interesting empirical results that support for example explanation and prediction of A-H return premium based on BV/P ratio, which practically could indicate an investment strategy. However, the strategy is only valid to the extent that no frictions such as investment barriers, transaction costs etc. Implementation of the strategy therefore is subject to restrictions and the deregulations in reality. All models are constructed based on fixed-effect specification which is an improvement over pooled OLS regressions and has certain advantages over time-series or cross-sectional regression, however, the data size available is another limitation. Further research can be explored on improving current limitations discussed in previous paragraph. Also the specified models which include only two price ratios as independent variable could potentially be extended to include more variables that may explain A or H share returns (or disparity), which can be other fin ancial information such as expected growth of earnings per share, or stock liquidity measurement.

Prevention And Treatment Of Breast Cancer Essay - 1884 Words

When we have diseases or don’t feel well, we tend to seek treatments and try to cure it as soon as possible. For this disease, there are multiple of reliable treatments and ways to cure this disease. This disease hunts women worldwide, and it’s the second leading cause of cancer-related death in the U.S Life can be really difficult and no one wants any sickness or diagnosed with such a hard-to-cure disease like cancer. It’s the most common cancer in women in the U.S and many countries also. Breast cancer is not a deadly disease like prostate cancer that so much harder to cure. Death rates have been going down since 1989, due to more and more ways that can impact this cancer. Due to the public understands more on breast cancer by doing research, and the advance medicine makes breast cancer easy to cured. In the following paragraphs, I will be explaining on some of the risk factors, prevention, and screening on breast cancer that a woman can do to get ready and be aware of this cancer. A breast made up by three of the most important parts: lobules, ducts and stroma that are mainly for its function. The lobules are the milk producing glands, and it is important for breasting feeding the baby. In the breast, ducts are tiny tubes that carry the milk from the lobules to the nipple, and stroma were the fatty tissue and connective tissue that surrounds the ducts and lobules. Of course there are the functions of breast have more components like the blood vessels that are importantShow MoreRelatedPrevention And Treatment Of Breast Cancer3159 Words   |  13 Pagesvast majority of cancer deaths, metastasis is the complex process by which the cancer cells spread from the primary site to distant sites throughout the body by way of increased tumor invasiveness. Tumor cells persist in replication and may inadequately differentiate into specialized cells as they attain an aggressive manner. 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Riordan Manufacturing Company Review and Analysis Free Essays

Riordan Manufacturing Company: Review and Analysis Jennah Es-Sudan, Monica Malcom, Annie Willis and Yeong Yoo University Of Phoenix BUS/430 December 1, 2009 Riordan Manufacturing Company Review and Analysis The focus of this paper is to analysis the regulatory measures of Riordan Manufacturing. Riordan Manufacturing, Inc. is an industry leader in the field of plastic injection molding. We will write a custom essay sample on Riordan Manufacturing Company: Review and Analysis or any similar topic only for you Order Now With state-of-the art design capabilities, creating innovative plastic designs that have earned international acclaim. Attention to detail, extreme precision and enthusiastic quality control are the hallmarks of Riordan Manufacturing. With facilities in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hangzhou, China, Riordan has the capacity to fulfill unique needs. Riordan Manufacturing is wholly owned by Riordan Industries, a Fortune 1000 enterprise. The company decided to closed their plant in Michigan and open it in China. Opening this business in another country has advantages. Our team will also discuss unfair import laws, Foreign Corrupt Practices Act of 1977, Patents, trademarks, and intellectual property, and environmental regulation and how they relate to doing business in China. Unfair Import Laws The government has assertively imposed our anti-dumping laws to fight unfair Chinese trade. † alleged Commerce Secretary Carlos M. Gutierrez. â€Å"China’s economy has developed to the point that we can add another trade remedy tool, such as the countervailing duty law. The China of today is not the China of years ago. Just as China has evolved, so has the range of our tools to make sure Americans are treated fairly. By acting on the petition filed last October, the United States today is signifying its continued pledge to leveling the playing field for American manufacturers, workers and farmers. Foreign Corrupt Practice Act (FCPA of 1977) Congress enacted the Foreign Corrupt Practices Act (â€Å"FCPA† or â€Å"the Act†) in 1977 in reaction to the Watergate scandal. Widespread media coverage of unreported crusade assistance and potentially unlawful payments to strange officials encouraged the Securities and Exchange Commission (â€Å"SEC†) to begin an investigation. The SEC’s investigation eventually exposed that more than 400 U. S. companies had paid bribes to foreign governments and politicians, totaling more than $300 million. An FCPA violation requires that action be taken with a corrupt intent. Corrupt means an evil motive of purpose, and intent to wrongfully influence the recipient of the payment or offer to misuse his official position or to influence someone else to do so. The act does not require the corrupt act to be a success; it just means that an attempt was made to influence an alien bureaucrat. China has made great efforts to combat essentials of bribery—through endorsement and enforcement of strict anti-bribery laws and penalties—it still remains a cause of concern in the China business market. For example, in 2005, 11,071 members of the Communist Party of China (â€Å"CPC†) were disqualified from the party as reprimanded for dishonesty. In addition, Chinese magistrates dealt with 120,000 cases of misappropriation, corruption, and negligence of duty over the past five years. Given the size and magnitude of China’s market, these issues also cause alarm for U. S. companies doing business in China. Chinese and other overseas companies may make unlawful expenses in China with restricted risks, U. S. ompanies doing business in China may feel marketable stress to disobey the Act to avoid finding themselves at a aggressive difficulty to companies that are not subject to the same laws or similar enforcement. For this reason, U. S. companies operating in China need a solid FCPA compliance program to avoid action for FCPA violations and to avoid becoming knotted in China’s domestic corruption and bribery laws. Patents, Trademarks, and Intellectual Property Compan ies try to capture the markets by issuing licensing permits for intellectual properties to increase profits for their business. These intellectual properties included patents and trademarks. Unfortunately, nations are still struggling to adopt a consistent international legal system that governs the intellectual property. They often have restrictions which includes geographical/and field use limitations and customer restriction. The Paris Convention is a guarantee that in each signatory country, foreign trademark and patent application from other signatory countries will receive the same treatment. According to United States Patent and Trademark Offices (2009) a patent for an invention is the grant of a property right to the inventor. There were problems and drawbacks with this particular agreement so in 1970 the patent cooperation Treaty was adopted. This particular agreement addresses the centralized utility patent application process (Schaffer, Agusti, Earle, 2009). A trademark is a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs, that identifies and distinguishes the source of the goods of one party from those of others United States Patent and Trademark (2009). Riordan Manufacturing makes plastic products in the United States and decided to move the plant that makes Pontiac products to China. This was a way to produce goods cheaper than in the United States and enter the market international. When making this move into the international market Riordan Manufacturing has trademarks on their plastic bottles and other plastic products that the Paris Convention would cover. Environmental Regulations Environmental regulations are guidelines that are in place to govern how matters that effect human life and environment handle. WTO rules a nation can require foreign producers to comply with environmental standards that are required by domestic firms (Schaffer, Agusti, Earle, 2009). Riordan Manufacturing had to make sure that when moving their company from Michigan to China that the environmental regulations are followed. China has been working with great determination in recent years to develop, implement, and enforce a solid environmental law framework. Chinese officials face critical challenges in effectively implementing the laws, clarifying the roles of their national and provincial governments, and strengthening the operation of their legal system EPA- China Environmental Initiative (2009). Having a manufacturing company Riordan had to make sure that the plant that was being built was welcome in China and it adhered to the regulation guidelines. Riordan also had to follow the pollution regulation and the energy regulation. Production of their products was welcome and they learned the environmental regulation to take their business to China. Political Risks of Operating a MFG Company in China China has been one of desirable areas that any international companies would want to expand their business to. Its evolving economy, huge manufacturing base, enormous supply of natural resources are dangerously attractive, yet the expansion to this developing country comes with risks. The political risks in China Riordan Company should consider is that China is increasingly pressuring foreign investors to transfer technology to local producers, which could erode the patent protections and competitiveness of investors. Next fact that Riordan should consider is that as they focus on shifting growth from exports to domestic consumption, China’s leaders may withdraw tax benefits for foreign investors. Infrastructure bottlenecks and strong upward pressures on government-controlled electricity and fuel prices also create considerable uncertainty around manufacturing efficiency and operating expenses. Our initial decision to locate our China operations in Hangzhou was driven largely by the fact that our Chinese partners already had facilities there that should be able to handle all regulations and political surroundings. As a join venture partner, Riordan Company should understand sporadic fuel shortages and worsening urban gridlock inject ambiguity into forecasts for domestic auto demand growth. In short, low-cost manufacturing and vast potential domestic demand is offset by uncertainty in regulatory and infrastructure capacity. This makes China a potentially higher-risk, higher-reward investment destination. Riordan Company executive management also should outline framework for understanding how local political and market dynamics affect foreign ventures. China holds tremendous promise as a manufacturing centre and market, but management should remember are social, regulatory and energy issues around the next curve in the road. Political-risk analysis should have been processed to contemplate not just broad, easily observable trends but also the nuances of society and the quirks of personality that can affect a venture’s success. For Riordan Company to be successful in join venture in Hangzhou China Riordan must obtain professionally prepared political risk analysis giving current assessments and forecasts of future stability. They can also seek consulting firms, insurance industry reports, reports of U. S. government agencies, and informal discussions with experienced international bankers nd shipping company representatives. Outline of the Possibilities for Foreign Investment and Securities A company that operates in a foreign country has to comply with the laws of that country. As a rule international business causes great pressures for U. S. business managers. A projected high profit margin weighs little if local law prevents repatriation of profits to the foreign investor’s home jurisdict ion. Riordan Manufacturing made the decision to expand internationally for the following reasons. China attempts to encourage investments from foreign residents. The following are among the reasons that foreign investors are attracted to China: †¢ Extremely low labor costs. †¢ A tremendous buyers’ market in China itself with a population of 1. 3 billion. †¢ An expectation of a sharp increase in the buying power of Chinese residents, a fact that is influenced by the annual GDP of over 8% per annum and the low rates of inflation. †¢ In recent years, Chinese laws concerning foreign investments have been significantly eased. The total FDI in China for 2006 totaled 63 billion dollars. Conclusion From the beginning of the nineties and particularly from 2001, when China joined the WTO, until the present, the attitude to foreign investment in China has changed, among other matters, foreign investors are permitted to form companies that are 100% owned by foreign capital. Sales to the local market are permitted and foreign investment is also allowed in sectors other than industry and hi-tech, such as banking, insurance, financial services, etc. As a result of joining the WTO, China is expected to standardize specific benefits that were previously granted only to overseas investors or only to Chinese companies. As a general rule, industries in China that are open to foreign investments are divided into 3 categories, an encouraged investment, a restricted investment and a prohibited investment. Foreign investors cannot invest in projects that are connected with the military and defense industries in China. There are also restrictions on 100% control of foreign investors over transport, the automobile industry and power stations. Benefits that China grants to foreign investors are not given in the form of grants. Most benefits are in the form of a tax benefit, including value added tax, customs and income tax benefits in putting the mphasis on an investment in a Special Economic Zone (SEZ) or in special sectors and areas. The benefits granted are as previously approved according to the nature of the foreign investment. There are 5 SEZ’s in China in the south of the country, the main tax benefits are: corporate tax of 15%. A benefit of â€Å"2 + 3 years â€Å"which means an exemption from tax for the first two years and tax at the rate of 12. 5% for the next three years. Pudong Zone (Shanghai) In the Pudong zone there are 5 development zones specializing in hi-tech, financial services, agriculture and more. The benefits are similar to those granted to investors in an SEZ. References Schaffer, R. , Agusti, F. , Earle, B. (2009, 2005). International Business Law and Its Environment (7th Ed. ). Mason, Ohio: South-Western, Cengage Learning. World Wide- Tax Finance (2009). China Foreign Investment Incentives. Retrieved December 1, 2009, from www. worlwide-tax. com/china/chi_invest. asp United States Patent and Trademark Office 2009. Definitions. Retrieved on November 30, 2009 from www. uspto. gov/ EPA- China Environment Law Initiative November 2009. Retrieved on November 30, 2009 from www. epa. gov/ogc/china/initiative_home. htm How to cite Riordan Manufacturing Company: Review and Analysis, Papers

Definition of Project Management Samples †MyAssignmenthelp.com

Question: Discuss about the Definition of Project Management. Answer: Definition of Project Management The methodologies that are involved in Project Management are considered as a bunch of processes, which cannot be repeated and the methodologies are needed for making a project that is efficient, flexible, and consistent. The methodologies that are involved in project management improves the way of managing all the projects involved in an organization. According to (Kerzner Kerzner, 2017), the methodologies of project management have all the processes that are needed involved in a project including responsibilities, templates, roles, and description. There is a structure known as WBS (Work Breakdown Structure) and gnat chart, which should all the details of the project. According to the strategy of an organization, methodologies of project management improve the project alignment involved in a project. The competitive advantage is also increased by using the project methodologies in a project because it helps to complete the project faster and with most efficient way. Methodologies also help to lower the cost of completing the project. The requirements of all the employees can be predicted accordingly on priority basis by the help of project management methodologies. As stated by (Schwalbe, 2015), methodologies helps to improve information management especially, in areas that deals with least visibility in organization. The employees or the team members who are involved in a team can improve their performance and skills that are needed to handle a project, also assure the ownership of all processes, and analyze the result in a project. The stakeholders involved in a project are satisfied using the methodologies in project management. The methodologies plays an important role in project management life cycle. Mostly five different methodologies are present in project management. Fleming Koppelman, (2016), stated that those methodologies help in solving the processes in projects, which works with project management. The services included in Internet Technology are also provided by methodology of project management. The standards included in project management generally helps in managing and initiating projects carried out in a project. The methodologies involved in project management give some standards providing some new processes and tools so that the job of the project manager becomes easy. The methodologies that are involved in project management generally have definitions, templates, and guidelines that are related with all the activities and processes dealing with a project success (Turner, 2016). All projects that deals with methodologies of project management works on a same ground that is common for all. Objectives are provided by those methodologies that helps to create and design an objective of a project that is comprehensive, accessible, flexible, and reasonable. Some particular disciplines are included in the methodologies that allows the content of the application project to work better and provide a clear judgment for project manager. Similarities and Difference between PMBOK and PRINCE2 methodologies Similarities: Both PMBOK and the PRINCE2 method generally provide bunch of techniques and templates as well as tools so that the projects can be managed and requirements of the projects can be re-invented. The main goal of PMBOK and the PRINCE2 method helps to handle the projects that have common characteristics and also has the ability to handle the problematic projects (Martinelli Milosevic, 2016). These methodologies help to input a unique change, accelerate the change, and also provide new deliverables for all the projects that are handled by them. Both methods helps to reduce the risk involved in projects undertaken by scheduled slippage, delivery of projects that are unsatisfactory, and projects that are overspend. Differences: PMBOK method does not give an output that has logs, baseline documents, configuration, and logs. On the other hand, PRINCE2 methods provide all these outputs. The PMBOK methodology provide processes that has proper guidelines for selecting a tool used in estimation of three point, gathering information techniques, earned value analysis, and matrices of stakeholder (Serrador Pinto, 2015). The PRINCE2 method does not provide such guidelines. There should be a regular review on the methodology of PRINCE2 in a business case. The PMBOK method generally looks after the external process involved in the project. The project manager dealing with PMBOK method does not have control on the project after the project has been started. PRINCE2 methodology in Project Life Cycle The PRINCE2 methodology of project management is mostly similar to another type of project management methodology known as PMBOK. The PRINCE2 methodology is very much useful for delivering a project successfully in a PLC. In a PLC, there are three factors of PRINCE2 methods, which gives a proper planning for the methodology (Joslin Mller, 2015). The main factors that are involved are: All the processes that are involved in project management are managed by stages. In order to prepare for a project, without the method of PRINCE2 it is not possible to handle a project with a detailed plan in realistic way. Practically handling the project with detailed plan is not possible without the PRINCE2 method in a project life cycle. So, all the processes are divided into stages so that it can be handles easily. Planning for a project is the main way to handle the project with PRojects IN Controlled Environments methodology. The kind of plan that is used in this method is explained in detailed with all the characteristics of the processes involved in the project. Higher level of planning is done while starting the project with PRINCE2 methodology (Heldman, 2018). Stage plans are organized while carrying out the project with PRINCE2 method. Then the project team members execute the project finally. For starting with the project in PRINCE2 methodology, generally three processes are carried out of all seven processes that are involved in PRINCE2 method. References Fleming, Q. W., Koppelman, J. M. (2016, December). Earned value project management. Project Management Institute. Heldman, K. (2018).PMP: project management professional exam study guide. John Wiley Sons. Joslin, R., Mller, R. (2015). Relationships between a project management methodology and project success in different project governance contexts.International Journal of Project Management,33(6), 1377-1392. Kerzner, H., Kerzner, H. R. (2017).Project management: a systems approach to planning, scheduling, and controlling. John Wiley Sons. Martinelli, R. J., Milosevic, D. Z. (2016).Project management toolbox: tools and techniques for the practicing project manager. John Wiley Sons. Schwalbe, K. (2015).Information technology project management. Cengage Learning. Serrador, P., Pinto, J. K. (2015). Does Agile work?A quantitative analysis of agile project success.International Journal of Project Management,33(5), 1040-1051. Turner, R. (2016).Gower handbook of project management. Routledge.