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National Culture And Capital Structure Decisions: Evidence From Foreign Joint Ventures In China, Kai Li, Dale W. Griffin, Heng Yue, Longkai Zhao
National Culture And Capital Structure Decisions: Evidence From Foreign Joint Ventures In China, Kai Li, Dale W. Griffin, Heng Yue, Longkai Zhao
Research Collection School Of Accountancy
We investigate the role of firms’ country of origin in financial leverage decisions using data on foreign joint ventures in China. We hypothesize that national culture enters the joint optimization process leading to foreign joint ventures’ leverage decisions and that it affects leverage decisions both directly and indirectly. Using cultural values of mastery and embeddedness to explain country of origin effects, we find that mastery has negative and significant direct effects on foreign joint ventures’ leverage and short-term debt decisions, and a positive and significant direct effect on the likelihood of foreign joint ventures’ having long-term debt. The indirect effects …
Corporate Philanthropic Giving, Advertising Intensity, And Industry Competition Level, Ran Zhang, Jigao Zhu, Heng Yue, Chunyan Zhu
Corporate Philanthropic Giving, Advertising Intensity, And Industry Competition Level, Ran Zhang, Jigao Zhu, Heng Yue, Chunyan Zhu
Research Collection School Of Accountancy
This article examines whether the likelihoodand amount of firm charitable giving in response tocatastrophic events are related to firm advertising intensity,and whether industry competition level moderatesthis relationship. Using data on Chinese firms’ philanthropicresponse to the 2008 Sichuan earthquake, we findthat firm advertising intensity is positively associated withboth the probability and the amount of corporate giving.The results also indicate that this positive advertisingintensity-philanthropic giving relationship is stronger incompetitive industries, and firms in competitive industriesare more likely to donate. This study thus provides evidencesuggesting that even in the wake of catastrophicevents, corporate philanthropic giving is strategic.