Advances in Economics, Management and Political Sciences

- The Open Access Proceedings Series for Conferences

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Volume Info.

  • Title

    Proceedings of the 2023 International Conference on Management Research and Economic Development

    Conference Date

    2023-04-28

    Website

    https://2023.icmred.org/

    Notes

     

    ISBN

    978-1-915371-83-6 (Print)

    978-1-915371-84-3 (Online)

    Published Date

    2023-09-13

    Editors

    Canh Thien Dang, King's College London

    Javier Cifuentes-Faura, University of Murcia

Articles

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230163

    Predicting Stock Prices Using Markov Chain: The Stock Price Forecast based on Shanghai Securities

    This study investigates and predicts the stock price of Shanghai Securities. Our analysis lemma the C-K equation,n step transition to predict the stock price of Shanghai Securities. In this paper, we have put our model into different stocks in reality to test its feasibility. Finally, we envisaged the probable scope for this approach and listed some shortages of using Markov chain in predicting stock price. A great discovery in this page is that utilizing the stock's Markov property; we concluded that Shanghai Securities is martensitic. Also, we have proved the economic benefit of this numerical model.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230164

    Comparative Analysis of Factors Affecting Carbon Prices in China and Europe

    Global warming has become a hot issue of common concern to the international community in recent years. With the frequent occurrence of extreme weather events, reducing carbon dioxide emissions has become a priority for governments. The Paris Agreement makes it possible to connect carbon trading platforms of various countries and set up a global carbon emission rights exchange. The carbon price is affected by many factors, among which energy price, economic indicators and temperature are important factors. This paper compares how carbon prices fluctuate in response to different influencing factors in China and Europe. The reason for these differences is that China and Europe have different emission reduction policies, economic systems and energy structures. Research shows that the same influencing factor has a different impact on the carbon price in China and Europe. Participants in carbon trading may find this study useful in helping them comprehend the variations between the carbon trading markets in China and Europe.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230165

    Technology Enables Sustainable Development: Family Business Succession under Digital Transformation

    In the dual context of digital transformation and intergenerational inheritance of family enterprises, digital transformation, balanced intergenerational inheritance and de-familization model will jointly contribute to the performance of family enterprises. This paper takes Chinese A-share-listed family enterprises as the research objective. Stata17.0 statistical software is used to describe and regress the data of family enterprises in the fiscal years from 2015 to 2020. The results show that digital transformation has a negative impact on the performance of family enterprises, but the balance between intergenerational inheritance and de-familization will have a positive impact on the performance of family enterprises.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230166

    The Formation and Development of Options and Pricing Models

    Option, BSM and mean-variance pricing model have always been hot topics in financial statistics, as well as basic concepts to master when learning financial knowledge and engaging in the financial industry. With the increasingly mature theoretical research on financial risk control, many pricing models related to risk control have been established based on BSM model and mean-variance model. Therefore, this paper mainly studies BSM model and mean-variance model. So, this paper mainly discusses the learning achievements of option contract, BSM model and mean-variance model. Firstly, this paper introduces the basic concept of option contract, explains what option contract is, the components of option contract, and the formation history and development process of option and option contract. Secondly, the formation and development process of BSM model and mean-variance model are explained respectively in the work, and related concepts are described and explained rationally. From the historical and realistic point of view, this paper explains the risk avoidance effect of option contract, BSM model and mean-variance model on financial transactions.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230168

    A Case Study of POP MART Marketing Strategy

    In just ten years, POP MART has developed rapidly and become the leader in the national LOMO market. It would be worthwhile to analyze and summarize its marketing strategy. This paper expounds on the brand background, industry background, STP analysis and 4P theory of the POP MART brand, and analyzes the marketing strategy of the POP MART brand. By reviewing the relevant literature in the last three years, this paper analyzes the brand problems and brand advantages. The advantages of the brand are obvious, such as the cooperation with many IP products, and exquisite product design. The acceptability of price and unit price of products is high. Brand marketing takes advantage of consumer psychology. Online and offline promotions are also plentiful. However, there are still some problems, such as low brand recognition, unsatisfactory customer promotion and insufficient product development. Customer loyalty and competitiveness of POP MART need to be improved. According to the above information, this paper puts forward several suggestions: The business should open a new market, such as the male market. Also, businesses should improve the product emotional value of the product and make the product become story innovative, etc. In cooperation with IP, the brand should analyze and understand the corresponding consumer groups of each IP, which can make more targeted update plans. Also, it enhances the brand awareness and recognition of its own brand.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230170

    Analysis of Two Representative Acquisition Deals in Media and Entertainment Industries

    The deals in the dynamic media and entertainment industries have been paid great attention to in recent years. One of the most valuable things that companies competed for was customers’ attention. Hence deals were made to provide unparalleled technologies or content. The case studies adopted in this study are objective and specific. Focusing on the analysis of two representative acquisition deals in the media and entertainment industries, this article gives a comprehensive introduction to Walt Disney Company, Pixar Animation Studios, Microsoft Corporation and Activision Blizzard, lists essential contract terms and summarizes the changes. To conclude, in the process of merger or acquisition, technologies and entertainment content are key elements in companies’ consideration. Through exchanging and sharing resources, parties involved in the deals could achieve a win-win relationship. Nevertheless, there are also many problems that need to be solved, including the interference of the third party, cultural conflict and changing market requirements.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230171

    The Impact of US-CN Audit Agreement on US-listed Chinese Companies and Its US Peers

    This paper examines the US-CN Audit Agreement’s influences on investors’ reactions towards US-listed Chinese companies and the potential spillover effect on US domestic listed companies with the same auditors that Chinese companies have. The sample consists of 282 Chinese US-listed companies and 3986 U.S. companies with the same auditors as those Chinese companies. We then compare the average stock return of U.S.-listed Chinese companies and the U.S. companies based on the sample period for the stock return data begins from July 27, 2022, to Aug 29, 2022. By using T-test separately, we found that U.S. companies have higher average stock returns in the previous 21-days period, and in the 3-day announcement window, the difference in stock returns between U.S.-listed Chinese companies and U.S. companies is not material. Therefore, we document that although investors become so alarmed by the publication of the US-China Audit Agreement that stock returns suffer. As a result, the success of US-China audit cooperation will increase investor confidence and help Chinese companies' stock returns and mitigate the negative effects.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230172

    Predicting the Federal Funds Rate: A Linear Regression Analysis

    In this research, we aim to utilize linear regression estimated by ordinary least squares (OLS) to construct a predictive model for the federal funds rate in the U.S.. It is a crucial instrument of implementing monetary policy, including financial institutions, investors, and policymakers. To construct the model, we will obtain data on various economic and financial indicators that affect the federal funds rate. This will include macroeconomic variables such as inflation and GDP growth, as well as financial market indicators such as the yield on government bonds and the reserve balance level held by Federal Reserve banks. We will then use this data to fit a linear regression model and evaluate its performance using various statistical metrics. Once the model has been developed, we will use it to make predictions about future federal funds rate actions and determine the leading causes of these movements. Additionally, we will test the model's accuracy given changes in the underlying data and assumptions. The findings of this study will be helpful to a wide range of academic and practical audiences and will offer insightful information on the factors affecting the federal funds rate.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230174

    The Dilemma of Live Streaming Economy from the Perspective of Digital Divide - Taking Huangshaping as an Example

    Tiktok is a very popular streaming video media that is popular with many Chinese viewers. The Chinese government is currently promoting the policy of rural revitalization. With the advancement of internet technology, more and more villagers are promoting their hometowns through short videos and live streaming video, and using them to sell their agricultural products. However, there are many drawbacks to this, such as poor information and literacy level make it more challenging to promote their videos. Through qualitative and quantitative research methods, this research examines factors affecting the effectiveness of the rural area broadcasting economy from some specific perspectives. In this research, data analysis and interviews are both included. The results have shown that the long-term existence of this vicious cycle of low illiteracy and low quality of agricultural goods will have a negative impact in the long run.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230175

    Strategies in Corporate Finance and Risks Assessment to Improve Profitability--Taking McDonald’s as an Example

    McDonald's has grown steadily since its establishment and has gradually grown into a leader in the fast food industry over the years. How McDonald’s becomes so profitable may be questioned and learned by other enterprises. That is because, throughout the development of McDonald’s, many successful strategies have been used to improve its competitiveness and market share. This paper explores McDonald’s concrete marketing strategy in corporate finance and risk assessment. It is organized as follows: In the first part, the achievements of McDonald’s will be briefly introduced. In the second part, this paper analyzes some specific strategies that McDonald’s has used in its corporate finance. In the third part, this paper discusses McDonald’s strategies to assess its risk. In the end, the successful strategies that McDonald’s has utilized are summarized. This paper can help readers understand McDonald’s experience and how they become so successful.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230176

    Is the Stock Market a Reliable Indicator of the National Economy? -- Empirical Analysis According to Chinese Data

    Based on China’s economic data from 1992 to 2021, this essay employs the unitary linear regression model to investigate the effect of the Shanghai Composite Index on per capita GDP and carries out heterogeneity analysis from the perspective of different bank types. This paper concludes that the stock market in China has the function of a barometer. Based on different industries, the Chinese stock market’s capacity as a barometer is effective in different industries, but China’s stock market has the greatest effect on the tertiary industry, the second industry, and the least effect on the primary industry. Based on the expenditure approach, Chinese stock market’s use as a barometer is effective for different components of GDP, but the effect of China’s stock market on net exports of products and services is the largest, followed by government consumption and input-output ratio, and the effect on household consumption is the least. Based on the consideration of timing, the Chinese stock market’s ability to serve as a barometer only took effect before the outbreak of the substandard goods crisis in 2008 and failed after the outbreak of the crisis.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230177

    Predicting Fraud in U.S.-Listed Chinese Companies: An Empirical Analysis based on M-Score and F-Score Models

    M-Score and F-Score are financial fraud prediction models that are commonly used in Western capital markets. In this paper, we calculate M-Scores and F-Scores for each dataset of 15 fraudulent Chinese companies (including Hong Kong companies) listed in the U.S. from 2006 to 2020 and compare their M-Scores and F-Scores with 15 companies in the same industry that are not fraudulent. Firstly, we used Student's t-test on data from both models respectively. The result shows that both of them are able to predict fraud well for Chinese stocks listed in the U.S. With the result, we further compare and test the differences between the financial fraudulent samples and the comparison samples in the dimensions of each variable in the M-Score and F-Score models. Finally, we draw a result that they are effective in predicting whether a Chinese company committed financial fraud.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230178

    Application of Earned Value Management in Project Management

    Today, firms may cut costs through improved information exchange and boost profitability by delivering goods more quickly and affordably with fewer resources thanks to the scientific use of project management. In these projects, the core management activities revolve around cost management. This requires project managers to follow a scientific approach to strict project budgets, identify deviations early, analyse problems and correct them in a timely manner. Therefore, this paper aims to introduce the meaning and methods of cost management and introduces the basic concept of earned value management after analysing the history and current status of cost management to optimize its theory. By analysing the interplay between project cost and schedule, this paper explains how to apply earned value management to project cost control process by using cost and schedule performance index analysis and so on. The paper concludes with an analysis of the limitations and some countermeasures and suggestions. Cost management of projects should take into account the variability of the project and take into account both time and quality factors.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230180

    Can Higher Salary Cap Bring the Team a Trophy? -The Correlation Between Player Salary Expense and Team’s Ranking

    This paper investigates the impact of a team's salary cap on its end-of-season standing. This study made use of data from the Spanish Soccer League (La Liga) and the National Football League (NFL). Four consecutive seasons of correlation and regression analyses were conducted for both leagues to determine the relationship between these two variables. The analysis revealed that in La Liga, a higher salary cap will result in a higher team ranking. However, no correlation between salary caps and NFL team rankings has been found. The root cause for the inconsistent results may be that the disparity in salary cap between NFL teams is insufficient to have an actual impact on team performance. This research is valuable in informing the club manager whether accumulating expensive players to buy the trophy is a feasible strategy.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230181

    The Influence of Social Media Marketing on Consumers' Behavior

    Social media, an essential part of social connection, is becoming an inevitable global communication tool. The popularity and availability of mobile phones have further fueled the importance of social media. Social media marketing activities carried out by enterprises helps to attract more comprehensive customers and influence customers' purchase behavior. However, with the increasing investment of significant brands in marketing activities on social media platforms, marketing on social media is becoming increasingly competitive in building consumers' awareness about a particular product, customers' purchase behavior, and purchase decisions. Marketing research has focused on using social media to motivate consumers' purchase intentions and maintain consumer loyalty. The previous studies have shed some light on the significant impacts of social media on consumers' behaviors. However, few focus on consumers' purchase intentions and decisions. Through a literature review, this paper studies how consumer behavior changes due to social media. This paper explores how social media can ultimately market consumer behavior by influencing consumer psychology, attitude, and internal motivation for consumption through a literature review. Hopefully, this paper also can provide some ideas for enterprises to better their strategy formulation, optimize marketing plans, and improve brand benefits and corporate earnings in the increasingly fierce social media marketing competition.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230182

    The Factors that Influence the Price of Crude Oil

    The current Russia-Ukraine war that started on February 24th, 2022, saw almost an immediate drop in stock market indices around the world but a corresponding rapid rise in the Crude Oil and Gold prices in the world commodity market. This is a most interesting cause-and-effect reaction, but apparently, the commodity of Crude Oil has always been closely related to wars, social struggles, economic upheavals, and geopolitical confrontations. This paper will attempt to concentrate on world history since 1950 and observe and study and analyze the interrelationship between oil prices and these outside factors that influence them. The ultimate aim is to arrive at some conclusions that will support several preliminary observations and hypotheses.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230183

    Enterprise Size Distribution in the Financial Network

    Due to the increasingly developed supply chain, the financial network has become more and more perfect in recent years. The financial network connects all enterprises, which helps small-scale enterprises get rid of difficulties and promotes the development of the whole industry. This paper studies the influence of enterprises of different scales on the whole financial network. Taking banks as an example, this paper builds a banking system composed of several banks, which are connected by inter-bank links. Then, a model is constructed to simulate different kinds of impacts on financial networks. After the simulation, the results of various situations are analyzed. Finally, it is concluded that large-scale enterprises play a vital role in the financial network. At the same time, this paper also expounds on the disaster that large-scale enterprises will bring to financial networks once they have their own crisis.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230184

    Analysis of Inter Milan's Financial Losses

    Inter Milan was founded on March 9, 1908, as a result of a split between 44 founders who opposed the ban on international players by the Milan Cricket and Football Club. Inter Mi-lan is a football club located in the city of Milan and is one of the Italian first division football teams. However, it has suffered serious financial losses in recent years. Since 2018, the loss has increased and almost doubled every year. The loss has decreased since 21-22, but it still has not gotten rid of the predicament of loss. Firstly, this paper briefly summarizes the team's past achievements and history as well as its management in recent years, including the overall profit and loss situation, the composition of the players and the main revenue sources of the club. On this basis, the economic losses of the club are analyzed. The paper analyzes Inter Milan's financial losses in terms of the epidemic, aging players, changes in sponsors and partners, and competitive results, and suggests some pos-sible solutions. Finally, an outlook on the future development of Inter Milan is provided.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230185

    National Monetary Policy Responses in the COVID-19 Epidemic

    The COVID-19 pandemic has had a significant influence on the economies of many different nations in the world. When the economy suffers a severe blow, monetary policy should help it get back on its feet. Building the home market and maximizing industrial allocation is now especially crucial because the COVID-19 outbreaks have made it difficult for countries to conduct normal commercial exchanges. The COVID-19 also exhibits the traits of persistent global epidemics. Every new outbreak of the disease has a detrimental effect on the economy and severely undermines consumer confidence. National monetary policy from the world's major central banks was quicker, broader, moreover, the response to the economic and financial crisis of COVID-19 was more broad than the one to the global financial crisis of 2008. The response of three major nations, including the United States, the United Kingdom, and China, to the COVID-19 will be critically analyzed in this paper. However, there are many potential threats to the government's easing of monetary policy to keep the economy stable while stopping the spread of the pandemic, which means that persistently low interest rates are no longer a sustainable option. Therefore, balancing the financial chaos and social problems caused by monetary policy is the key to ensure the sustainable development of the country.

  • Open Access | Article 2023-09-13 Doi: 10.54254/2754-1169/20/20230187

    Biopharmaceutical Companies: The Winner of the Stock Market During the Covid Period

    Developing a so-called "green economy" garners more support in the current climate of uncertainty and danger. Since the beginning of the 21st century, we have recognized that the drive to develop the economy causes irreparable harm to the planet's ecosystem. After the Covid pandemic, a new intermediate industry, the biopharmaceutical industry, has emerged to reduce the tension between the human ecology and the earth's ecosystem. This industry devised a successful response to the health, economic, and social issues of the pandemic age. This paper aims to examine the financial performance of two renowned biopharmaceutical companies, Pfizer and Moderna, which have been permitted to distribute the mRNA vaccine worldwide. This paper concludes the investigation into the stock performance of these two companies prior to and throughout COVID. Besides, examination of the technology market index, market volatility, and investor sentiment reveals the various fluctuations. In addition, the data reveals an effect of contagion between the two enterprises and the technology market. Thus, the research gives useful information for the development of public health economics, policy, and administration.

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