成人大片

Proposed Class Schedule

First half of intensive

1. Asia’s economy and global imbalance
Asia’s economic growth
Global imbalance and its cause

2. Asia’s currency issue
Bretton Woods System II
Capital controls and liberalization
Road to convertibility: Chinese Yuan

3 Asia’s financial markets
Asian markets in the global portfolio: Equity and bond markets
Currency market
Can Asia embrace global financial centres?
China’s segmented equity market

4 Law and finance: A framework for understanding stakeholders and governance
Textbook finance vs. reality
Law and finance

5 Law and finance: Global and Asian evidence
Who controls Asian firms?
Shareholder rights: cash-flow rights and voting rights
Ownership concentration
External finance

6 State capitalism Part 1: Asia’s growing sovereign economic power
State capitalism
State owned enterprises (SOEs) and privatization
Market incentives and state objectives
Government control of partially privatized SOEs
The impact of state on market and firms

7 State capitalism Part 2:
China’s growth puzzle

8 Family capitalism
Family control around the world
Growth of family business in Asia
Is family business a good organizational structure?
US example: diversified ownership and good legal environment
Asian firms: concentration of control and expropriation


Second half of intensive

The students are expected to present the project in the second half. Each group presents interim results for the project for 15 minutes before the final write-up.

9 Informal financial sector and South Asia (India)
India’s development and financial markets
Financing Indian corporate firms
Corporate groups and informal financing
Microfinance

10 Corporate groups
Korea: Chaebol
Tunneling
Japan: Keiretsu
Main bank system
Cross-shareholding

11 Global Financial Crisis and lessons from the Japanese Financial Crisis of the 1990s
The Japanese asset price bubble in the 1990s
Bank crisis
De-levering of firms and recession

12 Wrap up and left over topics:
Tale of two cities: Hong Kong and Singapore
Wrap up

1. Overview of Asian economies and currency system
2. Conceptual framework for understanding financial markets and institutions.
3. Understanding of empirical findings for various Asian capital markets
4. Vision for the future of Asian capital markets 

There is no text book for this course. Please read the required readings prior to attending the lecture. There are on average two required readings for each lecture. You should be able to download all the journal articles from the library or from the web directly using the provided link. Other articles will be uploaded on MyUni.

Please download articles directly if a link is provided below. For journal articles, you can download from the university library, or some will be uploaded onto MyUni.
(*) Must read the ones with the asterisk
(ref) Reference readings

1. Global imbalance and Asia’s economy
a. (*)Charles Adams and Donghyun Park, 2009. Causes and Consequences of Global Imbalances: Perspective from Developing Asia. Asian Development Review, vol. 26, no. 1: 19−47. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1611424

b. (*)Martin S. Feldstein, 2008. Resolving the Global Imbalance: The Dollar and the U.S. Savings Rate.
Journal of Economic Perspectives, vol. 22(3), pages 113-25, Summer. http://www.nber.org/papers/w13952

c. (ref) Guonan Ma and Wang Yi, 2010. China’s High Saving Rate: Myth and Reality. BIS Working Paper No. 312 http://www.bis.org/publ/work312.htm

2. Asia’s currency issue

a. (*)Michael P. Dooley, David Folkerts-Landau, and Peter Garber, 2004. The Revived Bretton Woods System. International Journal of Finance and Economics, vol. 9: 307–313.

b. (*)Takatoshi Ito, 2011. The Internationalization of the RMB: Opportunities and Pitfalls. Council on Foreign Relations Working Paper.
http://www.cfr.org/china/internationalization-rmb-opportunities-pitfalls/p26287

c. (*)Jeffery Frankel, 2011. Historical Precedents for the Internationalization of the RMB. Council on Foreign Relations Working Paper.
http://www.cfr.org/china/historical-precedents-internationalization-rmb/p26293

3. Asia’s financial centres

a. (ref)Joshua Felman, Simon Gray, Mangal Goswami, Andreas Jobst, Mahmood Pradhan, Shanaka Peiris and Dulani Seneviratne, 2011. ASEAN5 Bond Market Development: Where Does it Stand? Where is it Going? IMF Staff Papers. WP/11/137. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1869546

b. (*) Executive Summary, Sections I and II: from page 1 to page 59) Michael R. Bloomberg and Charles E. Schumer (City of New York and United States Senate), 2007. Sustaining New York’s and US’ Global Financial Services Leadership.
http://www.nyc.gov/html/om/pdf/ny_report_final.pdf

c. (ref) Global Financial Centres Index 11
http://www.zyen.com/long-finance/global-financial-centres-index-gfci.html

4. Law and finance: A framework for understanding stakeholders and governance of Asian firms

a. (*)Rafael La Porta, Florencio Lopez-De-Silanes, Andrei Shleifer and Robert W. Vishny,1998. Law and Finance, Journal of Political Economy, vol. 106, no.6, pp.1113-1155.

5. Law and finance: Global and Asian evidence

a. (*)Stijn Claessens, Simeon Djankov and Larry H.P. Lang, 2000. The Separation of Ownership and Control in East Asian Corporations. Journal of Financial Economics, vol. 58, pp.81-112

b. (ref) Rafael La Porta, Florencio Lopez-De-Silanes, and Andrei Shleifer, 1999. Corporate Ownership around the World, Journal of Finance, vol. 54, no.2, pp. 471-517.

c. (ref) Rafael La Porta, Florencio Lopez-De-Silanes, Andrei Shleifer and Robert W. Vishny, 1997. Legal Determinants of External Finance,
Journal of Finance, vol. 52, no.3, pp. 1131-1150.

6. State capitalism 1

a. (*)Andrei Shleifer and Robert R. Vishny, 1998. Perspectives of Government. Chapter 1 of
The Grabbing Hand: Government Pathologies and Their Cures, Harvard University Press ISBN 0674010140

b. (*)The Visible Hand, Special Report: State Capitalism, 2012.
The Economist, Jan. 21.

c. (*) Jianping Deng, Jie Gan, and Jia He (2011) Political Constraints, Organizational Forms, and Privatization Performance: Evidence from China, working paper.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=970056

7. State capitalism 2

a. (*)Allen, Franklin, Jun Qian and Meijun Qian (2005) Law, Finance, and Economic Growth in China.
Journal of Financial Economics 77: 57-116.

8. Family capitalism

a. (*) (from Lecture 5) Stijn Claessens, Simeon Djankov and Larry H.P. Lang, 2000. The Separation of Ownership and Control in East Asian Corporations.
Journal of Financial Economics, vol. 58, pp.81-112

b. (*)Mara Faccio, Larry H. P. Lang, and Leslie Young (2001) Dividends and Expropriation,
American Economic Review, Vol. 91 No. 1: 54-78.

c. (ref) Michael L. Lemmon and Karl V. Lins (2003) Ownership Structure, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis.
Journal of Finance, Vol. LVIII, No. 4: 1445-1468.

d. (ref) Asian Family Business Report (2011) Credit Suisse Research Institute
https://publications.credit-suisse.com/app/shop/index.cfm?fuseaction=OpenShopDetail&aoid=325378

9. Informal financial sector and South Asia

a. (*) Allen, Franklin, Rajesh Chakrabarti, Sankar De, Jun Qian and Meijun Qian (2012) Financing Firms in India,
Journal of Financial Intermediation Vol. 21 401-445.
Page 5 of 11

b. (ref, especially Section 7 on informal sector) Allen, Franklin, Rajesh Chakrabarti, Sankar De (2007) India’s Financial System. Working paper.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1261244

10. Corporate groups

a. (*) Kee-Hong Bae, Jun-Koo Kang and Jin-Mo Kim (2002) Tunneling or Value Added? Evidence from Mergers by Korean Business Groups.
The Journal of Finance, Vol. 57, No. 6, pp. 2695-2740

b. (ref) The Benefits and Costs of Keiretsu Financing. Chapter 6 of Takeo Hoshi and Anil Kashyap (2001) Corporate Financing and Governance in Japan. The MIT Press, Cambridge MA, ISBN 0-262-08301-9

c. (*) Mark Scher (2001) Bank-firm Cross Shareholding in Japan: Why is it, Why does it Matter, Is it Winding Down? DESA Discussion Paper No. 15, United Nations
http://www.un.org/esa/desa/papers/2001/esa01dp15.pdf

11. Global Financial Crisis and lessons from the Japanese Financial Crisis of the 1990s

a. (ref) Takeo Hoshi and Anil K. Kashyap (2010) Will the U.S. Bank Recapitalization Succeed? Eight Lessons from Japan. Journal of Financial Economics 97 398–417.

b. (*) Richard Koo and Masaya Sasaki (2010) Japan’s Disposal of Bad Loans: Failure or Success? – A Review of Japan’s Experience with Bad Debt Disposals and its Implications for the Global Financial Crisis – NRI Papers No. 151.
http://www.nri.co.jp/english/opinion/papers/2010/np2010151.html

c. (*) Richard Koo (2011) The World in Balance Sheet Recession: Causes, Cure, and Politics,
Real-world Economics Review No. 58 http://www.paecon.net/PAEReview/issue58/Koo58.pdf

Regularly reading business newspapers are strongly recommended, such as Business Times (Australia), Financial Times (London), Wall Street Journal (USA). The University library has FACTIVA, a database of business newspaper articles. Bloomberg is a good free source on the internet.

The course is based on lectures and hands-on learning group projects.

Weekly classes are 3 hours long. You can expect to spend about the same amount of time preparing for each class. The assignments and exam preparation will demand additional concentrated periods of non-classroom study, on your own or with your allocated student group. As a rough indication, you could expect to spend in the order of 120 hours of study time to complete the course, of which 36 hours would be in class.

There is no text book for this course. Please read the required readings prior to attending the lecture. There are on average two required readings for each lecture.

Attendance

Statutory obligations in Singapore are such that attendance in person is a compulsory condition of passing a course. Our specific requirements are that students must attend at least 80% of class sessions to be graded for that course. For these purposes each intensive weekend is defined as comprising 5 sessions with 1 on Friday evening and 2 on each of Saturday and Sunday.

Each course in total comprises 10 sessions; Students must attend a minimum of 8 sessions to be eligible to be given a grade for the course. Students failing to meet these requirements will be automatically graded 0% Fail (F) on their transcripts.

Group Project

30%


Final Exam (Closed book)

70%

Instruction for the group assignment

1. Group size will be determined in Day One based on class size.

2. The details of the assignment will be explained in Day One.

3. All students must form groups and the group leader must send one email with the names of all the group members before the end of the First Intensive. 

4. Anyone not in a group according to those emails from group leaders will be randomly allocated to groups.

5. The group leader becomes responsible for submitting the group assignment.

6. Deadline: TBA


Group consultancy project
You are expected to submit a professional consultancy report as a team.

•Assume that you are a consultant firm to design an investment strategy for a professionally managed portfolio in Asian securities.
•Your assignment is to design an investment strategy for the fund manager who is going to actually buy and sell individual securities for his/her portfolio.
•Portfolio strategy must be a conceptual framework for a fund manager that sets its investment policy for a long-term horizon, rather than recommending certain securities to trade at certain timing.
•In the appendix please report below:
–Three Asian stocks a fund manager might select based on your strategy.
–Three Asian stocks a fund manager might want to avoid based on your strategy.
–The stocks must be among the constituent stocks in the MSCI Asia APEX 50 (ex-Japan). http://www.msci.com/products/indices/licensing/msci_asia_apex_50/
–Briefly summarize why the fund manager might chose each stock

Presentation of Assignments
• Please ensure you retain a copy of all assignments submitted.
• Please attach an ‘Assignment Cover Sheet’, which is signed and dated by you before submission.

Lecturers can refuse to accept assignments, which do not have a signed acknowledgement of the University’s policy on plagiarism.

In preparing any written piece of assessment for your postgraduate studies it is important to draw on the relevant ‘literature’ to support critical analysis. Also essential is to reference the literature used. Correct referencing is important because it identifies the source of the ideas and arguments that you present, and sometimes the source of the actual words you use, and helps to avoid the problem of plagiarism. (Further information on plagiarism is provided later in this course outline.)
The Harvard system is widely used in the Business School. Guidelines for the use of this style of referencing can be found in the Communication Skills Guide.

Further assistance with referencing is available from the Faculty’s Learning Support Advisors. The contact details are provided on page 6 of the Communication Skills Guide.

Late Assignment Submission
Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. All requests for extensions must be emailed to the lecturer in charge of the course before the due date. Each request will be assessed on its merits. A late assignment (without prior arrangement) will be penalised by a 5% mark reduction for each day that it is late.