Simon S. M. Ho

University of Macau, Macao, Macau, Macao

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Publications (37)43.26 Total impact

  • In-Mu Haw, Simon S. M. Ho, Jamie Y. Tong, Feida Zhang
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    ABSTRACT: This paper examines the role played by product market competition in shaping accounting conservatism in an international setting. Using a large dataset from 38 countries, we find evidence that product market competition is positively associated with accounting conservatism only in countries with strong legal institutions. Moreover, the positive association between product market competition and accounting conservatism is significantly more pronounced in countries with effective financial reporting environments, which consist of higher earnings quality, more frequent and greater disclosure practices, and more stringent enforcement of insider trading regulations. Our empirical findings suggest that product market competition and strong legal institutions jointly drive accounting conservatism. Our study highlights the delicate role of product market competition as an industry-level governance mechanism in determining the quality of accounting earnings and the role of legal institutions as effective country-level governance mechanisms in ensuring product market competition to function effectively.
    Journal of International Accounting Research 01/2014; DOI:10.2308/jiar-51051
  • In-Mu Haw, Simon S.M. Ho, Bingbing Hu, Xu Zhang
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    ABSTRACT: One of the central puzzles of signaling theory is how to assess signal quality, in particular the potential for signal mimicking. Our study provides evidence of signal mimicking in the context of stock repurchases. Employing an ex-ante proxy for the likelihood of mimicking stock repurchases and data on open market stock repurchases from 30 countries, we find that long-term operating and market performance following stock repurchases improve less for suspected mimicking firms. This finding contradicts the conventional characterization that managers use stock repurchases to signal undervaluation and enhanced future performance. We find that mimicking firms have smaller capital investments, need greater external financing, buy back fewer shares, and issue more new shares (and/or resell more treasury shares) in the year of the repurchase. Our analysis further shows that mimicking is more likely in countries with weak investor protections and in firms with higher ownership concentration. Further, mimicking associated with concentrated ownership is mitigated in countries with stronger investor protections and by the adoption of International Financial Reporting Standards (IFRS). Altogether, our findings provide evidence of signal mimicking in stock repurchases in international data that is influenced by market, ownership, legal, and financial reporting characteristics of countries.
    The International Journal of Accounting 12/2013; 48(4):427–458. DOI:10.1016/j.intacc.2013.10.002
  • Teresa Chu, In-Mu Haw, Simon S. M. Ho, Xu Zhang
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    ABSTRACT: In this study, we investigate whether the labor protection regulations are systematically related to firms’ equity risk in an international setting. We argue that labor protections which constrain firms operating flexibility increase equity risk, hence the implied cost of equity. Our empirical analyses reveal that firms in countries where labor rights are well protected have a significantly higher equity cost, after controlling for investor protection environments and firm- and country-level risk factors. However, the effect of labor protections on the equity cost is significantly mitigated in the presence of controlling shareholders, especially in the case of a family controlling owner. The economic magnitude of such effect is substantial: a one-unit increase in labor market regulation index increases the annual cost of equity by 0.776% in widely held firms, while it increases by only 0.415% in firms with controlling shareholders. The empirical results further demonstrate that the increased cost of equity due to labor protections is acerbated in labor intensive industries. Our study sheds light on the equity risk induced by tight labor regulations.
    SSRN Electronic Journal 04/2013; DOI:10.2139/ssrn.2242867
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    ABSTRACT: Both capsule endoscopy (CE) and angiography have been recommended as first investigation for patients with acute overt obscure gastrointestinal bleeding (OGIB). However, no studies have directly compared the two modalities in patients with overt OGIB. We compared the diagnostic yield and long-term outcomes of patients with overt OGIB randomized to CE or angiogram. Consecutive patients presented with acute melena or hematochezia, but nondiagnostic upper and lower endoscopy, were immediately randomized to receive small-bowel CE or angiography. All patients were monitored for rebleeding and anemia for up to 5 years. Primary end point was the diagnostic yield of the assigned investigation. Secondary end points included rebleeding, further transfusion, readmission for bleeding or anemia, and mortality. A total of 60 patients with overt OGIB were randomized. The mean follow-up was 48.5 months. The diagnostic yield of immediate CE was significantly higher than angiography (53.3% vs. 20.0%, P=0.016). The cumulative risk of rebleeding in the angiography and CE group was 33.3% and 16.7%, respectively (P=0.10, log-rank test). There was no significant difference in the long-term outcomes between the two groups including further transfusion, hospitalization for rebleeding, and mortality. In patients with overt OGIB, immediate CE has higher diagnostic yield and comparable long-term outcomes when compared with angiography.
    The American Journal of Gastroenterology 07/2012; 107(9):1370-6. DOI:10.1038/ajg.2012.212
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    ABSTRACT: This study examines the use of accounting conservatism in firms with multiple controlling owners. In particular, we investigate the association between dispersion of cash-flow rights among controlling shareholders and accounting conservatism as well as how ownership type differences among controlling shareholders, family ownership, and legal institutions influence this association. Using a comprehensive, firm-level ownership dataset for thirteen Western European countries to conduct the empirical analysis, we find that: (1) dispersion of cash-flow rights across multiple large owners is positively associated with accounting conservatism; (2) the positive association between dispersion of cash-flow rights and accounting conservatism is more pronounced when controlling shareholders are of different types; (3) family ownership strengthens the positive association between dispersion of cash-flow rights and accounting conservatism; (4) the positive association between dispersion of cash-flow rights and accounting conservatism is more pronounced in countries with stronger legal institutions. This study contributes to the literature in a number of ways. First, this study highlights the importance of the second largest controlling shareholder in affecting the level of accounting conservatism. Second, this paper reinforces the important role played by ownership type differences among controlling shareholders in influencing the association between dispersion of cash-flow rights and accounting conservatism. Third, this paper strengthens the importance of family ownership in affecting agency problems between majority and minority shareholders. Fourth, this paper stresses the importance of legal institutions in influencing the installation of firm-level corporate governance mechanisms. Finally, the findings of this study have important implications for accounting standard setters attempting to eliminate conservatism in financial reports.
    SSRN Electronic Journal 02/2012; DOI:10.2139/ssrn.1478641
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    ABSTRACT: A VR-based training system for practicing biopsies simulates ultrasound imagery by stitching multiple ultrasound volumes on the basis of a 3D scale-invariant feature transform algorithm. In addition, a six-degree-of-freedom force model delivers a realistic haptic rendering of needle insertion.
    IEEE engineering in medicine and biology magazine: the quarterly magazine of the Engineering in Medicine & Biology Society 03/2011; 31(2):36-48. DOI:10.1109/MCG.2009.151
  • In-Mu Haw, Simon S.M. Ho, Annie Yuansha Li
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    ABSTRACT: This study examines earnings management through classification shifting and the monitoring role played by corporate governance mechanisms in curbing such misclassification in an international setting. Employing a sample drawn from eight East Asian economies, we find that managers opportunistically shift core expenses to special items to increase core earnings and that misclassification is magnified when such shifting enables the firm to meet analyst earnings forecasts, results that are consistent with those of prior U.S. research. More importantly, our study shows that misclassification increases with the degree of the separation of ownership and control by the ultimate owners of a firm, especially when they are family members, thus suggesting that controlling shareholders mask firm performance through less visible classification shifting. We also find that stronger legal institutions mitigate the expense shifting induced by the concentrated ownership structures in East Asia and enhance the effectiveness of Big 4 auditors in curbing misclassification. Finally, our market tests indicate that investors are temporarily fooled by classificatory management at the initial announcement stage, but then unravel the quality of manipulated core earnings over the course of the subsequent year. Although managers employ the earnings management tools of expense shifting and discretionary accruals as substitutes, they are more likely to shift core expenses than to manage discretionary accruals to increase core earnings. Our results are robust to a series of sensitivity tests, which suggests that our evidence is not driven by model bias.
    Contemporary Accounting Research 02/2011; 28(2):517 - 553. DOI:10.1111/j.1911-3846.2010.01059.x
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    In-Mu Haw, Simon S. M. Ho, Bingbing Hu, Xu Zhang
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    ABSTRACT: Using corporate payout data from 33 economies, this study investigates the contribution of stock repurchases to the value of the firm and cash holdings in different country-level investor protection environments. We find that stock repurchases contribute more to firm value in countries with strong investor protection than in countries with weak investor protection. We also report that dividends contribute approximately 60% more to firm value than repurchases in countries with weak investor protection. Furthermore, as the proportion of repurchases in total payouts increases, the marginal value of cash increases in countries with strong investor protection, whereas it declines in countries with weak investor protection. In a poor investor protection environment, the marginal value of cash for a firm that makes 100% of its payouts via repurchases is 12 cents lower than that for a firm that distributes 100% of its payouts via dividends. Overall, our findings highlight that stock repurchases are less effective than dividends in mitigating agency problems associated with free cash flow in countries with poor investor protection.
    SSRN Electronic Journal 02/2011; 17(1-17):152-166. DOI:10.1016/j.jcorpfin.2010.10.001
  • In-Mu Haw, Simon S. M. Ho, Bingbing Hu, Woody Wu
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    ABSTRACT: Existing research indicates that firms with concentrated ownership structures are associated with poor financial reporting quality. This study investigates whether and how the divergence between control and cash-flow rights of controlling owners affects the effectiveness of analyst forecasting activities, and whether the effect varies with country-level legal institutions. Using a broad firm-level ownership data set for twenty-two economies, we find that control-cash flow divergence, on average, has no measurable effect on analysts' forecast properties across countries with varying legal institutions. We document rather weak detrimental effect of control divergence on forecast properties only in a small set of countries with weak legal institutions. Overall, our results indicate that the agency problems embedded in concentrated ownership structures do not always impede the private information production by analysts, which complements the previous evidence of the impact of concentrated ownership structures on corporate disclosures.
    Journal of Accounting, Auditing and Finance 04/2010; 25(2). DOI:10.1177/0148558X1002500204
  • In-Mu Haw, Simon S.M. Ho, Bingbing Hu, Donghui Wu
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    ABSTRACT: Using a broad sample of listed commercial banks in East Asia and Western Europe, this paper investigates the relations among concentrated control, a set of bank operating characteristics, and legal and regulatory regimes. We find that banks with concentrated control exhibit poorer performance, lower cost efficiency, greater return volatility, and higher insolvency risk, relative to widely held ones. We also document that legal institutions and private monitoring effectively reduce the detrimental effects of concentrated control and that official disciplinary power plays a weak governance role, whereas government intervention exacerbates the adverse effects. Further evidence shows that the relations between control concentration and bank operating characteristics are curvilinear and vary according to the types of controlling owners. Overall, our findings support the contention that country-level institutions play important roles in constraining insider expropriation, and that private monitoring mechanisms are more effective than are public rules and supervision in governing banks.
    SSRN Electronic Journal 03/2010; DOI:10.1016/j.jbankfin.2009.08.013
  • Simon S. M. Ho, Raymond S. Y. Chan
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    ABSTRACT: This study aims at ascertaining how Hong Kong people perceive Hong Kong as a harmonious society. It also identifies the elements that are most conducive to social harmony in Hong Kong, so that the government could take reference when formulating new policies. 1,062 adults residents were asked to rate their perceived level of social harmony and their satisfaction with 36 items (divided into three dimensions: public governance, society, and economy, family and work) for which the research team believes would be influencing the perceived level of social harmony. Results show that the average rating of social harmony was 5.57 (out of 10), delineating a moderate level of social harmony. Subsequent multivariate factor analysis and regression analysis show that the four extracted factors (from the three dimensions) had significant impacts on the level of social harmony. These were, in order of significance: (a) public governance, (b) social solidarity and respect, (c) economy/family/work and, (d) social tolerance and progressiveness. According to the factor loadings of each significant factor, we identified four core values which we hope the government would consider when formulating new policies, as follows: (1) A Justice Government with Sincerity on Communication, (2) Mutual Support and Respect with Integrity and Dedication, (3) Dedication to One’s Job and Community by Helping the Needed and, (4) Creativity and Progressiveness with Tolerance. Implications for policy making are discussed.
    Social Indicators Research 02/2009; 91(1):37-58. DOI:10.1007/s11205-007-9152-0
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    ABSTRACT: The reconstruction of three-dimensional (3D) ultrasound panorama from multiple ultrasound volumes can provide a wide field of view for better clinical diagnosis. Registration of ultrasound volumes has been a key issue for the success of this panoramic process. In this paper, we propose a method to register and stitch ultrasound volumes, which are scanned by dedicated ultrasound probe, based on an improved 3D Scale Invariant Feature Transform (SIFT) algorithm. We propose methods to exclude artifacts from ultrasound images in order to improve the overall performance in 3D feature point extraction and matching. Our method has been validated on both phantom and clinical data sets of human liver. Experimental results show the effectiveness and stability of our approach, and the precision of our method is comparable to that of the position tracker based registration.
    10/2008: pages 52-60;
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    ABSTRACT: This article introduces and summarizes selected papers from the first World Business Ethics Forum held in Hong Kong and Macau in November 2006, co-hosted by the Hong Kong Baptist University and by the University of Macau. Business Ethics in the East remain distinct from those in the West, but the distinctions are becoming less pronounced and the ethical traffic flows both ways.
    Journal of Business Ethics 04/2008; 79(1):1-8. DOI:10.1007/s10551-007-9384-6
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    ABSTRACT: The reconstruction of three-dimensional (3D) ultrasound panorama from multiple ultrasound volumes can provide a wide field of view for better clinical diagnosis. Registration of ultrasound volumes has been a key issue for the success of this panoramic process. In this paper, we propose a method to register and stitch ultrasound volumes, which are scanned by dedicated ultrasound probe, based on an improved 3D Scale Invariant Feature Transform (SIFT) algorithm. We propose methods to exclude artifacts from ultrasound images in order to improve the overall performance in 3D feature point extraction and matching. Our method has been validated on both phantom and clinical data sets of human liver. Experimental results show the effectiveness and stability of our approach, and the precision of our method is comparable to that of the position tracker based registration.
  • J Qin, K S Choi, Simon S M Ho, P A Heng
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    ABSTRACT: A force prediction algorithm is proposed to facilitate virtual-reality (VR) based collaborative surgical simulation by reducing the effect of network latencies. State regeneration is used to correct the estimated prediction. This algorithm is incorporated into an adaptive transmission protocol in which auxiliary features such as view synchronization and coupling control are equipped to ensure the system consistency. We implemented this protocol using multi-threaded technique on a cluster-based network architecture.
    Studies in health technology and informatics 02/2008; 132:387-9.
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    ABSTRACT: The ethics of tax evasion has been discussed sporadically in the theological and philosophical literature for at least 500 years. Martin Crowe wrote a doctoral thesis that reviewed much of that literature in 1944. This paper begins with a review of the literature and identifies the main issues and summarizes the three main views that have emerged over the centuries. It then reports on the results of a survey of HK and US university business students who were asked 15 statements to express their opinions on the 15 main issues. The data are then analyzed to determine which of the three viewpoints is dominant among the sample population. HK scores are compared to US scores to determine the difference between the two societies. The underlying cultural differences are further explored in hope of accounting for differing perceptions of ethics of tax evasion. Policy implications for increasing people's awareness of ethics on tax evasion are also highlighted.
    Journal of Business Ethics 02/2008; 77(2):147-158. DOI:10.2139/ssrn.930533
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    ABSTRACT: Ultrasound-guided biopsy is one of the most fundamental, but difficult, skills to acquire in interventional radiology. Intensive training, especially in the needle insertion, is required for trainee radiologists to perform safe procedures. In this paper, we propose a virtual reality simulation system to facilitate the training of radiologists and physicians in this procedures. Key issues addressed include a 3D anatomical model reconstruction, data fusion of multiple ultrasound volumes and computed tomography (CT), realistic rendering, interactive navigation, and haptic feedbacks in six degrees of freedom (DOF). Simulated ultrasound imagery based on real ultrasound data is presented to users, in real-time, while performing an examination on the needle placement into a virtual anatomical model. Our system delivers a realistic haptic feeling for trainees throughout the simulated needle insertion procedure, permitting repeated practices with no danger to patients.
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    ABSTRACT: This prospective trial aimed to evaluate the safety and effectiveness of transarterial ethanol ablation (TEA) of intrahepatic lesions of hepatocellular carcinoma (HCC) with a Lipiodol-ethanol mixture. Seventy-seven patients were recruited and 164 lesions (mean size, 5.2 cm +/- 3.0) were treated. Inclusion criteria included histologic proof of HCC, refusal of (n = 9) or contraindication to (n = 68) surgical resection, Eastern Cooperative Oncology Group performance status no greater than 2, and intrahepatic disease without vascular invasion. The mixture consisted of 33% ethanol by volume, with the total dose of Lipiodol-ethanol mixture limited to 60 mL for each treatment session. The primary endpoint was patient survival. Secondary endpoints were tumor response, adverse effects of treatment, and progression-free survival. Median follow-up time for the whole cohort was 2.3 years. Median overall survival was 2.2 years. Overall survival and progression-free survival rates at 1 year and 2 years were 77.9% and 50.1% and 63.6% and 46.3%, respectively. Complete ablation according to radiologic criteria was achieved in 61 patients (79.2%) and 86% of the 164 treated lesions. Mean tumor volume reduction was 65.22%. Patient survival was significantly better in patients with tumors no larger than 5 cm (Cox proportional-hazards regression, P = .0074). Treatment response was significantly better for patients with tumors no greater than 7 cm (chi2 test, P = .0462; Fisher exact test, P = .0326). Adverse effects included irreversible hepatic decompensation (0.6% of procedures), pain (4.8%), and fever (13.8%). TEA is a safe and effective means to establish local control of unresectable and resectable intrahepatic lesions of HCC.
    Journal of Vascular and Interventional Radiology 02/2008; 19(1):95-103. DOI:10.1016/j.jvir.2007.08.038
  • J Qin, P A Heng, K S Choi, Simon S M Ho
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    ABSTRACT: Research on collaborative virtual surgery opens the opportunity for simulating the cooperative work during surgical operations. It is however a challenging task to design and implement a high performance collaborative surgical simulation system because of the difficulty in maintaining a high level of state consistency under limited network transmission capacity. In this paper, we present an adaptive framework using cluster-based hybrid architecture to support real-time collaboration in surgical simulation. In addition to the TCP communication protocol, the framework is also equipped with UDP for multicasting, allowing for a flexible strategy to reduce network latency. A set of techniques was proposed to assure reliable transmission on top of standard yet unreliable multicast protocols. Experimental results demonstrate that this framework can support collaborative surgical simulation with lower network latencies than traditional client-server architecture.
    Studies in health technology and informatics 02/2007; 125:367-72.
  • Simon S.M. Ho, Richard H. Pike
    Journal of Business Finance & Accounting 12/2006; 19(3):387 - 405. DOI:10.1111/j.1468-5957.1992.tb00631.x

Publication Stats

582 Citations
43.26 Total Impact Points

Institutions

  • 2011–2013
    • University of Macau
      • Faculty of Business Administration
      Macao, Macau, Macao
    • Hong Kong Hospital Authority
      Hong Kong, Hong Kong
  • 2003–2012
    • Hong Kong Baptist University
      • School of Business
      Chiu-lung, Kowloon City, Hong Kong
  • 1991–2012
    • The Chinese University of Hong Kong
      • • Institute of Digestive Disease
      • • Department of Computer Science and Engineering
      • • School of Accountancy
      Hong Kong, Hong Kong
  • 2004
    • Prince of Wales Hospital, Hong Kong
      Chiu-lung, Kowloon City, Hong Kong