We examine whether analyst coverage influences corporate fraud in China. The fraud triangle specifies three main factors, i.e. opportunity, incentive, and rationalization. On the one hand, analysts may reduce the fraud opportunity factor through external monitoring aimed at discouraging managerial misconduct, which can moderate agency problems. On the other hand, analysts may increase the fraud incentive factor by pressurizing managers to achieve short-term performance targets, which can exacerbate agency problem. In either case, the potential influence of analysts on the fraud (...) rationalization factor may be more pronounced among firms that are more dependent on the capital market for corporate finance. Using a sample of Chinese listed firms, we show a negative association between corporate fraud propensity and analyst coverage, and that this effect is more pronounced among non-state-owned enterprises, which are more reliant on the stock market for external funding. These findings suggest that analyst coverage contributes to corporate fraud deterrence in emerging economies characterized by weak investor protection. The main policy implication is that further development of the analyst profession in emerging economies may benefit investors and strengthen business ethics. (shrink)

Following the financial crisis and recent recession, the center of gravity of global economic growth and competitiveness is shifting toward emerging economies. As a leading and increasingly influential emerging economy, China is currently attracting the attention of academics, practitioners, and policy makers. There has been an increase in research interest in and publications on issues relating to China within high-quality international academic journals. We therefore organized a special issue conference in conjunction with the Journal of Business Ethics in Lhasa, Tibet, (...) on May 19–20, 2014, on Business Ethics in Greater China: Past, Present and Future. The papers for the special issue focused on the intersection of ethics and finance, and fit within one of the three themes: environment and sustainability, corporate social responsibility, and fraud. Within these themes, issues of intellectual capital protection, gender equality, political connections, regional development, investor protection, corporate stewardship, trust and corruption, and corporate transparency each play a significant role. In this paper, we survey these studies and the related literature to provide a comprehensive coverage of business ethics and finance issues that affect China. (shrink)

This essay explores the controversy over peer-to-peer (p2p) software, examining the legal and ethical dimensions of allowing software companies to develop p2p technologies. It argues that, under the Supreme Court’s ruling in the Sony betamax case, technology developers must be accorded the freedom to innovate and develop technologies that are capable of substantial noninfringing uses. This doctrine, known as the Sony doctrine, provides an important safe harbor for technological development, including p2p. The safe harbor, however, does not immunize conduct beyond (...) the design, sale, or supply of the product. For other conduct that falls outside the Sony safe harbor, the traditional standards of secondary liability apply. (shrink)

This paper has two main aims: first, to set forth an analysis of Timaeus 48E-52D and then to explore the significance of those pages for our understanding of Plato’s metaphysics. Students of the “Receptacle” in Plato’s Timaeus have given close attention to the many metaphors he offers in his explanation of its nature. Less attention has been given to the overall structure of the passage in which he presents it. In this paper, I attempt to show that Plato’s exposition there (...) exhibits a coherent and very careful design. But once that design is grasped, it can be seen that his extended account of the Receptacle must properly be understood to treat a rather different subject: the nature of an image, rather than the nature of the Receptacle, is the focal concern uniting the whole of 48E-52D. (shrink)

We use institutional-related theories and a unique natural experiment that enables an exogenous test of the influence of controlling shareholders on managerial accountability to corporate fraud. In China, prior to the Split Share Structure Reform, state shareholders held restricted shares that could not be traded. This restriction mitigated state-owned enterprise controlling shareholders’ incentives to monitor managers. The data examined show the SSSR strengthens incentives of state-owned enterprise controlling shareholders to replace fraudulent management. Our findings support the view that economic incentives (...) are important to promote corporate governance and deter fraud. (shrink)

RAID-II is a high-bandwidth, network-attached storage server designed and implemented at the University of California at Berkeley. In this paper, we measure the performance of RAID-II and evaluate various architectural decisions made during the design process. We first measure the end-to-end performance of the system to be approximately 20 MB/s for both disk array reads and writes. We then perform a bottleneck analysis by examining the performance of each individual subsystem and conclude that the disk subsystem limits performance. By adding (...) a custom interconnect board with a high-speed memory and bus system and parity engine, we are able to achieve a performance speedup of 8 to 15 over a comparative system using only off-the-shelf hardware. (shrink)

How humans and technology evolve together in a creative partnership. In this book, Edward Ashford Lee makes a bold claim: that the creators of digital technology have an unsurpassed medium for creativity. Technology has advanced to the point where progress seems limited not by physical constraints but the human imagination. Writing for both literate technologists and numerate humanists, Lee makes a case for engineering—creating technology—as a deeply intellectual and fundamentally creative process. Explaining why digital technology has been so transformative and (...) so liberating, Lee argues that the real power of technology stems from its partnership with humans. Lee explores the ways that engineers use models and abstraction to build inventive artificial worlds and to give us things that we never dreamed of—for example, the ability to carry in our pockets everything humans have ever published. But he also attempts to counter the runaway enthusiasm of some technology boosters who claim everything in the physical world is a computation—that even such complex phenomena as human cognition are software operating on digital data. Lee argues that the evidence for this is weak, and the likelihood that nature has limited itself to processes that conform to today's notion of digital computation is remote. Lee goes on to argue that artificial intelligence's goal of reproducing human cognitive functions in computers vastly underestimates the potential of computers. In his view, technology is coevolving with humans. It augments our cognitive and physical capabilities while we nurture, develop, and propagate the technology itself. Complementarity is more likely than competition. (shrink)

“Rationality” in Simon's “bounded rationality” is the principle that humans make decisions on the basis of step-by-step reasoning using systematic rules of logic to maximize utility. “Bounded rationality” is the observation that the ability of a human brain to handle algorithmic complexity and large quantities of data is limited. Bounded rationality, in other words, treats a decision maker as a machine carrying out computations with limited resources. Under the principle of embodied cognition, a cognitive mind is an interactive machine. Turing-Church (...) computations are not interactive, and interactive machines can accomplish things that no Turing-Church computation can accomplish. Hence, if “rationality” is computation, and “bounded rationality” is computation with limited complexity, then “embodied bounded rationality” is both more limited than computation and more powerful. By embracing interaction, embodied bounded rationality can accomplish things that Turing-Church computation alone cannot. Deep neural networks, which have led to a revolution in artificial intelligence, are both interactive and not fundamentally algorithmic. Hence, their ability to mimic some cognitive capabilities far better than prior algorithmic techniques based on symbol manipulation provides empirical evidence for the principle of embodied bounded rationality. (shrink)