OPTIMAL PORTFOLIO SELECTION OF BONDS AND STOCKS*

In the present study, we offer an alternative approach to bond portfolio management which differs from the traditional immunization approach. In doing so, we formalize what has been a common practice among some investors who form portfolios of bonds and stocks with a view to optimizing the trade-off between risk and return. By using the general multiindex model to characterize the variance-covariance structure of security returns, both duration theory and modern equilibrium theories of the term structure are incorporated in the analysis. In addition, a simplified selection procedure based on a single-index model is derived. This procedure is intuitively appealing to practitioners since it selects assets on the basis of reward per unit of risk of individual assets.     

Empirical likelihood based diagnostics for heteroscedasticity in partially linear errors-in-variables models

A standard assumption in regression analysis is homogeneity of the error variance. Violation of this assumption can have adverse consequences for the efficiency of estimators. In this paper, we propose an empirical likelihood based diagnostic technique for heteroscedasticity in the partially linear errors-in-variables models. Under mild conditions, a nonparametric version of Wilk's theorem is derived. Simulation results reveal that our test performs well in both size and power.     

Social Capital as Exchange: Its Contribution to Morale

A way to clarify the measurement of social capital is the differentiation of its bases on opportunity and exchange. Social capital based on opportunity incorporates organizational participation, network strength, trust, helping and continuing relationships, whereas social capital based on exchange consists of the investment and reciprocation of help. An empirical hint for verifying the social capital measurement is its predictability of morale. Based on survey data from 201 Japanese residents, the study examined various measurements of social capital based on 10 indicators and their prediction of morale. Results revealed that social capital based on exchange was sufficient to contribute to morale, and essentially represented the salutary part of social capital. As social capital based on opportunity had no contribution to morale, a refined measurement of social capital can just concentrate on its basis on exchange.     

Single Parenthood,Parental Involvement and Students’ Educational Outcomes in Hong Kong

Analyzing data from the Programme for International Student Assessment Hong Kong 2009 and 2012 (n = 7,669), we examined the differences in socioeconomic characteristics of fathers and mothers and levels of parental involvement between two-parent, single-mother, and single-father families in Hong Kong. We found that parents from single-mother and single-father families fare differently in terms of sociodemographic background and parental involvement at home. We also investigated the differences in students’ academic performance among these families. Past studies failed to find any significant effect of single parenthood on students’ academic performance in Hong Kong. We found negative effects of single fatherhood, but not single motherhood, on educational outcomes. The disadvantages of single fatherhood are partially explained by the poorer sociodemographic background and lower levels of parental involvement.     

Impacts of financial crisis on social engagement in Hong Kong

While a financial crisis must afflict people financially, its impacts on people's social life are unclear. Essentially, different theories expect different impacts of the financial crisis on people's social engagement. The present study thereby clarifies the effect by examining the experienced impact of the crisis on social engagement, in terms of participation in voluntary association and caring for acquaintances. Data for the study came from a survey of 1170 Hong Kong Chinese adults. Results show that the experienced impact tended to raise the participation, which in turn appeared to encourage the caring. These results support the functional explanation, which holds that the fiscal crisis generates a need for functions of voluntary associations. Meanwhile, the results are at odds with the resource thesis, which expects that the crisis would deprive resources required for social engagement. The results imply that the financial crisis can be a lever to strengthen social engagement.     

Understanding contextual effects on externalizing behaviors in children in out-of-home care: Influence of workers and foster families

The expression of externalizing behaviors of children in-care can be influenced by a multitude of factors. The current study examined the simultaneous levels of influence of workers and foster families on children's externalizing behaviors in those receiving out-of-home care. A cross-classified multilevel model was used to partition variance in children in-care's externalizing scores into worker, foster family and child-specific levels of influence. The extent to which processes are explained by worker and foster-family level predictors was examined. Assessment and Action Record (AAR) data from the Ontario Looking after Children (OnLAC) project were analyzed. The sample included data from 1063 children between 10 and 17 years of age (M age = 13 years, 6 months, SD = 2.08 years). While individual differences in children's externalizing behaviors were primarily attributable to child-specific effects (72%), 10% and 18% of the variance can be explained by worker and foster family influences respectively. Worker education accounted for substantial differences seen between workers where more difficult children were monitored by workers with less educational attainment. Furthermore, foster-family level predictors also explained variance in children's externalizing behaviors. Relative to children in foster care, those in kinship care displayed significantly lower levels of problem behaviors while children in group care displayed significantly higher levels. Higher levels of parental negativity within the foster family and the experience of more differential parental negativity relative to siblings were significantly associated with more externalizing behaviors. Lastly, children who were more satisfied with their placement displayed significantly lower levels of problematic behaviors. These results suggest that children in-care can be conceptualized within a multilevel framework.     

Corruption across countries: Impacts from education and cultural dimensions

Corruption, which is defined by Transparency International as the misuse of entrusted power for private gain, was related to the number of people participating in tertiary education across countries. It was found that as the number of people participating in tertiary education increased, the incidence of corruption occurring in the countries decreased. Similar to other studies, the higher the GDP per capita of a country, the lower the cases of corruption. Interestingly, correlation results showed that enrolment in tertiary education had a positive result with GDP per capita. Hofstede's (1984) cultural dimensions were also found to affect the acts of corruption indirectly through enrolment in tertiary education and GDP per capita. Overall, this study has included 56 countries and results were similar in two different time periods.     

Social capital and its relevance to the Japanese-model welfare society

Current debates and initiatives relating to the welfare regime in Japan focus on the contributions of informal and community networks. In this article, we adopt the concept of social capital, which is assessed according to three categories – structural social capital, experiential individual social capital and anticipatory individual social capital – in order to evaluate the assumptions and strengths of community in Japan. The findings are based on a small-scale survey conducted in the Greater Kobe area in 2002. The study revealed that the level of structural social capital is 'average' and the level of experiential individual social capital is 'rather low'. However, the anticipatory individual social capital, which is the expectation of future assistance whether conditional or unconditional, is higher than the experiential individual social capital. The findings suggest that, in Japan, people's belief that they will receive assistance in the future has a significant impact on their level of achievement. Such findings may help us understand the nature of the welfare regime in Japan: it depends on a sense of general trust, which effectively supports the informal groups and community networks that provide assistance to their members.     

Pedagogical Practice Wisdom in Social Work Practice Teaching—A Kaleidoscopic View

Limitations of technical rationality, the dominant paradigm for making sense of human interactions in the context of social work practice, have drawn much attention. Currently, practice wisdom in social work education is at the center of a hot debate, but one confined to conceptual analysis. As of yet, there is no empirical reference for its substantive contents and operation. In the current presentation, four features of practice wisdom are developed, based upon a synthesis of the commonalities of practice wisdom as inferred from extensive scholars' views: the interplay of Moral Reasoning and Cognitive Knowledge, the Agential Nature of Knowledge, the Interactive Process of Knowledge Generation, and the Fluid Status of Knowledge. To advance the development of social work pedagogy by filling the gaps in empirical knowledge, these four features, hence, pedagogical practice wisdom, as exercised by practice teachers, are explored. Ten videotaped practice teaching scenarios and twenty co-reflection meetings were undertaken with five practice teachers and analyzed. The main finding is that practice teachers exercised nondeliberative reflection, each emphasizing different features of practice wisdom, thus shaping their teaching in ways unique to each. These results suggest a kaleidoscopic view in understanding pedagogical practice wisdom and specialized training for practice teachers.     

Sustaining Resilience Through Local Connectedness Among Sojourn Students

Resilience is desirable for promotion as a resource for international students to sustain adjustment and withstand stress. A yet uncertain way for the promotion is the student’s connectedness with host or local people. To ascertain the benefit of local connectedness, this study surveyed 215 sojourn students originating from Mainland China who studied in Hong Kong. Results show that local connectedness engendered a significant positive effect on resilience and a significant negative effect on depressed mood. They echo theory and research concerning the merit of bridging social capital. This notion calls for efforts to associate sojourn students with locals with similar characteristics and advance their mutual help.