College of Management and Economics

About: College of Management and Economics is a based out in . It is known for research contribution in the topics: Supply chain & Stock market. The organization has 2184 authors who have published 2193 publications receiving 28830 citations.

Agency or resale: Effects of a platform-performance investment for frenemy platforms

Abstract: Competing platforms with hardware and content differentiation may adopt a one-way compatibility strategy, in which one platform owner allows its hardware users to purchase the competitor's content service, whereas the competitor does not. Moreover, the platform owners can choose a resale model or agency model. When a platform owner adopts the agency model, a platform-performance investment may force content providers to incur certain costs to ensure enhanced performance. In this paper, we develop a stylized model to investigate the effects of a platform-performance investment on a business-model decision by examining a platform ecosystem that consists of a unit mass of users, a content provider, and two downstream competing platform owners. We find that, when the unit misfit cost of hardware is much less than that of the content, if the royalty rate is too high (low), the agency (resale) model will be adopted by both platform owners. If the royalty rate is neither too high nor too low, the owners will adopt a different business model. When the unit misfit cost of hardware is weakly less than that of the content, the platform owners' business-model decision is jointly determined by the relative platform-performance investment efficiency and the royalty rate. Moreover, when both platform owners adopt the agency model, the price is not always higher than that when they use the resale model due to the negative effect of the performance investment. Finally, we present the condition under which the content provider would be better off if the provider is granted the right to change the business model by one platform owner.

Short selling, margin buying and stock return in China market

Abstract: It is well argued that short sellers are informed traders, and short interests predict future stock returns significantly. However, most researches neglect margin buyers, as twin sisters of short sellers, and keep silent about their impact on stock returns. In this article, we demonstrate that margin buyers significantly impact predictive power of conventional short measures. We document that conventional short measures neglecting margin-buying activities, short interest ratio (SIR) and days to cover (DTC) fail to predict stock return unless our analysis is confined to lightly margin bought stocks. We also show that short-margin trading ratio (SMTR), revised short measure with consideration of margin buying, predict stock return more sharply. What is more, we can form profitable portfolios by the new short measure.