Business Commons^™

China Inc. And The World's Response, Shaomin Li

Management Faculty Publications

This article is based on the author’s new book, China, Inc.: How the Chinese Communist Party Transformed China into a Giant Corporation (Cambridge University Press, 2022). The author argues that leveraging its absolute power, low human rights advantage, and tolerance by other countries, the Chinese Communist Party has transformed China into a giant corporation. Living, working, and investing are not rights but privileges granted by the party. The party is the management of China, Inc., with the politburo standing committee as the board of directors and the party’s general secretary as the CEO. The various ministries are the functional departments …

An Empirical Study On Innovation Ecosystem, Technological Trajectory Transition, And Innovation Performance, Yu Sun, Ling Li, Yong Chen, Mikhail Yu Kataev

Information Technology & Decision Sciences Faculty Publications

This paper explores technological trajectory transition in the perspective of innovation ecosystem and their effect on innovation performance of latecomers in market. A structural equation model is developed and tested with data collected from 366 firms in China. In specific, this paper categories technological trajectory transition creative accumulative technological trajectory transition (CCT) and creative disruptive technological trajectory transition (CDT). The results indicate that firms' organizational learning ability positively affect their technological trajectory transition and innovation performance. Firms' network relationship strength negatively affects their technological trajectory transition and positively affect their innovation performance. Governments' environmental concerns positively affect firms' technological trajectory …

The Role Of The Chinese Communist Party In The Covid-19 Crisis, Matthew Farrell

Management Faculty Publications

The Chinese Communist Party (CCP) has received plaudits from international press and organizations for their handling of the COVID-19 crisis, with some describing it as a win for China in terms of propaganda. In this essay, I explore an alternative view: That the CCP is responsible for the origin and extent of the pandemic, and that much of their perceived altruism is carefully disguised opportunism and propaganda. Facts are drawn from scholarly work and the popular press to support my arguments. This essay carries strong implications for interpretation of recent events.

Regime Type And Covid-19 Response, Ilan Alon, Matthew Farrell, Shaomin Li

Management Faculty Publications

From late 2019 to the first half of 2020, the world has witnessed the epic spread and destruction of the novel coronavirus which was discovered in Wuhan, China. The huge number of infections and deaths caused by the virus, the collapse of the healthcare system and the economic consequences have few modern equivalents. While governments of all countries are responding to the pandemic, a heated debate rages about which political system, democracy versus authoritarian, is better positioned to respond to the pandemic. While the worldwide effort to contain the virus continues, we offer a preliminary comparison between democracies and authoritarian …

China's Intellectual Property Rights Provocation: A Political Economy View, Shaomin Li

Management Faculty Publications

It is well recognized that intellectual property rights (IPR) violations are at the heart of the economic conflict with China. Little agreement, however, exists about the origin and solutions for this provocation. Broadly speaking, two prescriptions have been proposed: the natural evolutionary and the rule of law views. While both have merits and add to our understanding, they do not go far enough to address the more fundamental IPR policy issue: China has benefited from a rule of law overseas and a rule through law at home, manufacturing unfair advantage to its firms, many of which are owned and/or influenced …

Social Health Insurance Coverage And Financial Protection Among Rural-To-Urban Internal Migrants In China: Evidence From A Nationally Representative Cross-Sectional Study, Wen Chen, Qi Zhang, Andre M. N. Renzaho, Fangjing Zhou, Hui Zhang, Li Ling

Community & Environmental Health Faculty Publications

INTRODUCTION: Migrants are a vulnerable population and could experience various challenges and barriers to accessing health insurance. Health insurance coverage protects migrants from financial loss related to illness and death. We assessed social health insurance (SHI) coverage and its financial protection effect among rural-to-urban internal migrants (IMs) in China.

METHODS: Data from the '2014 National Internal Migrant Dynamic Monitoring Survey' were used. We categorised 170 904 rural-to-urban IMs according to their SHI status, namely uninsured by SHI, insured by the rural SHI scheme (new rural cooperative medical scheme (NCMS)) or the urban SHI schemes (urban employee-based basic medical insurance (UEBMI)/urban …

Assessment Of And Outlook On China's Corruption And Anticorruption Campaigns: Stagnation In The Authoritarian Trap, Shaomin Li

Management Faculty Publications

Since the beginning of China's economic reform in the late 1970s, corruption has been progressing alongside of economic growth. In 2012, when Xi Jinping took power, he waged the largest and longest anticorruption campaign known in the history of the Chinese Communist Party. This study provides an assessment on his campaign and projects an outlook on the future of corruption and anticorruption in China. The author argues that China will enter into an "authoritarian trap," in which the authoritarian power enables the state to effectively carry out the economic reform and achieve economic growth, while suppressing the demand for the …

Corruption May Worsen In Democratizing Economies: But Don't Let It Erode Our Faith In Democracy, Shaomin Li, Ilan Alon, Jun Wu

Management Faculty Publications

This commentary is based on a recent study we conducted on the relationship between regime type, corruption, and economic development. We build a theory that links corruption and regime type to economic growth and test it on 158 countries, using multiple databases including Polity IV, transparency international, the World Bank, and others. We first distinguish three regime types, autocracy (dictatorship), anocracy (countries in early stage of democratization), and mature democracy. We found that when autocratic countries begin democratize, corruption usually gets worse. As the infant democracies mature, corruption decreases.

Two Essays On Shareholder Base, Firm Behavior, And Firm Value, Yi Jian

Finance Theses & Dissertations

Most companies spend significant time and attention to managing their shareholder base out of the belief that significant stock market benefits can be reaped if they can identify and attract the right shareholders. Consistent with the opinion of practitioners, many financial economists suggest that the shareholder base is an important determinant of firm value and corporate policies (Lins and Warnock 2004; Brav, Graham, Harvey, and Michaley 2005; Bodnaruk and Ostberg 2013). Despite the importance of the shareholder base, research on the topic has been scant. What’s more, previous studies have reported conflicting results regarding the effect of the shareholder base …

The Choice Of Technology And Equilibrium Wage Rigidity, Haiwen Zhou

Economics Faculty Publications

In this general equilibrium model, firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Capital and labor are the two factors of production. The existence of efficiency wages leads to unemployment. The model is able to explain some interesting observations of the labor market. First, even though there is neither long-term labor contract nor costs of wage adjustment, wage rigidity is an equilibrium phenomenon: an increase in the exogenous job separation rate, the size of the population, the cost of exerting effort, and the probability that shirking is detected will not change the equilibrium wage rate. …

Photos Of Major Social Turmoils In China Since 1900, Shaomin Li

Management Faculty Publications

No abstract provided.

The Inevitable And Difficult Transition From Relation-Based To Rule-Based Governance In China, Shaomin Li

Management Faculty Publications

China has benefited tremendously from replying on the relation-based way of doing business and governance, as evidenced in its rapid economic growth up to now. However, further relying on the relation-based governance may eventually hinder China's economic growth and exacerbate inequality, resulting in political instability. On the other hand, given China's cultural heritage and powerful vested interest groups, can China shed its relation-based way? This article argues from logical, theoretical, and empirical perspectives the inevitability and difficulty of China's transition from relations to rules, and discuss the implications of the transition or the lack of it for China.

Three Essays On Cross-Listing, Liu Wang

Theses and Dissertations in Business Administration

This dissertation examines the role of cross-listing in shaping corporate earnings quality, stock price informativeness, and firm valuation, as well as its impact on a listing firm's home country information asymmetry and stock misvaluation.

The first essay addresses the information asymmetry between Chinese local A-share and foreign B-share markets and its impact on the B-share discount puzzle. In contrast with the widespread belief that domestic investors are better informed than foreign investors, this study indicates that foreign investors actually possess more value-relevant, firm-specific information in an emerging market such as China, where information transparency and investor protection are relatively weak. …

Asian Corporate Governance Or Corporate Governance In Asia?, Shaomin Li, Anil Nair

Management Faculty Publications

Corporate governance has become an important issue for Chinese and Indian firms as they increasingly interact with regulators and investors from developed markets. For instance, tapping into global capital markets to raise funds to finance their domestic and international growth requires firms from China and India to demonstrate strong corporate governance credentials, so that investors do not discount their stock (LaPorta, Lopez-de-Silanes, Shleifer, & Vishny, 2000). The swift action of Chinese and Indian authorities in response to recent corporate scandals – such as the one at Satyam Computers – reveals that even governments in emerging countries such as China and …

Two Essays On Lead-Lag Patterns Between Trading Volume And Stock Return In China Stock Markets, Xiaotian Zhu

Theses and Dissertations in Business Administration

This dissertation systematically investigate the lead-lag relations between the trading volume and stock return patterns in China A share and B share markets through two streams of behavioral postulations. In the first part, we summarize all the potential lead-lag patterns between trading volume and stock returns and link them to the corresponding behavioral explanations. In particular, Lee and Swaminathan's (2000) Momentum Life Cycle theory best explains the strong negative relations between lagged trading volume and subsequent return in China A share market. The strong positive relations between lagged market return and subsequent trading volume found in both China's B share …

Production Research In China, S. Chaudhry, S. Feng, H. Li, H. Sui, J. L. Zhang, Z Zhang, Li Xu

Information Technology & Decision Sciences Faculty Publications

(First paragraph) China is the world’s largest emerging economy. In recent years, China has moved to an increasingly market-oriented economy that opens to international trade and investment. At the same time, the popularity of China as a manufacturing base, assembling goods for sale worldwide is growing. In addition to global manufacturers who have built their own plants in China, many manufacturing companies are outsourcing production to Chinese subcontractors and branding the products with their own logos. In today’s China, production research is becoming more and more important; advanced production research becomes an important enabler to make its manufacturing industry competitive. …

The Market And Ethics: The Case Of The 1994 Decision By The Clinton Administration To Delink China's Human Rights Record From Most-Favored-Nation Status, Susan C. Morris

Graduate Program in International Studies Theses & Dissertations

Amid the globalization of markets and the interdependence of states, human rights violations throughout the world still persist. The purpose of this study is to investigate the relationship between the economic interdependence of nations and the moral responsibilities of nations by examining the case of the 1994 decision by the Clinton administration to delink China's human rights practices from most-favored-nation status.

The annual 1997 Freedom House world survey of human rights rated China at its lowest point and quoted that “the regime continues to have one of the worst human rights records in the world.”1 Yet despite China's ongoing human …

Relative Gains Problem And Case Studies Of Economic Cooperation In East Asia, Ping Deng

Graduate Program in International Studies Theses & Dissertations

Relative gains problem basically means unequal cooperative payoffs disproportionately favoring partners. With the relative gains problem widely accepted as a serious impediment to international cooperation, some scholars have theoretically argued or modeled several conditions that are most likely to foster a state's sensitivity to relative gains and thus substantially affect the prospects for cooperation. But little empirical work has been done to date. The central objective of this dissertation is to test whether those theoretical propositions can be supported by empirical evidence. For this purpose, we have deducted three hypotheses: (1) If a state faces military threat and zero-sum political …

Cultural Transposition: Exploring Meanings Of And Strategies For Cross-Cultural Transfer Of Organizational Practices, Yongming Tang

Engineering Management & Systems Engineering Theses & Dissertations

The research objective is to study the phenomenon of transferring organizational practices which are conceptualized in one culture to another different culture. The purpose of the study is (1) to understand how cultural values and beliefs are manifested in behavior; (2) to explore how the Western organizational practices are interpreted and assimilated into an organization in an Eastern culture; and (3) to explore strategies for the fit between local cultural orientations and imported organizational practices. A qualitative, interpretive, and reflexive research methodology was developed to conduct this study.

The study was conducted in two phases. The first phase was designed …