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Full-Text Articles in Business
Political Promotion, Ceo Incentives, And The Relationship Between Pay And Performance, Xiaping Cao, Michael Lemmon, Xiaofei Pan, Meijun Qian, Gary G. Tian
Political Promotion, Ceo Incentives, And The Relationship Between Pay And Performance, Xiaping Cao, Michael Lemmon, Xiaofei Pan, Meijun Qian, Gary G. Tian
Faculty of Business - Papers (Archive)
Both theory and empirical evidence suggest that managers' career concerns can serve as an important source of implicit economic incentives. We examine how incentives for political promotion are related to compensation policy and firm performance in Chinese state-owned enterprises. We find that the likelihood that the CEO receives a political promotion is positively related to firm performance. We also find that CEOs with a higher likelihood of political promotion have lower pay levels and lower pay-performance sensitivity. Overall, the evidence suggests that competition in the political job market helps mitigate weak monetary incentives for CEOs in China.
The Interplay Between Accounting Professionals And Political Ideologies: The Emergence Of Chinese Accounting Standards From 1978 To 1992, Lina Xu, Corinne L. Cortese, Eagle Zhang
The Interplay Between Accounting Professionals And Political Ideologies: The Emergence Of Chinese Accounting Standards From 1978 To 1992, Lina Xu, Corinne L. Cortese, Eagle Zhang
Faculty of Business - Papers (Archive)
This article explores the role of accounting professionals in the emergence of the first set of accounting standards - Accounting Standards for Business Enterprises (ASBE) - in China between 1978 and 1992. Based on a variety of sources drawn from the archives of Chinese language accounting textbooks and highly ranked academic journals, this article reveals how accounting professionals adapted accounting thoughts and practice to fit the demands of the prevailing political ideologies, which facilitated the social conditions essential for the development of ASBE. Drawing on theoretical perspectives on the interplay between accounting and its social context, as pronounced and advocated …
Ethnic Or Political Fractionalisation? A District Level Analysis Of The Provision Of Public Goods In Sri Lanka, Arusha Cooray
Ethnic Or Political Fractionalisation? A District Level Analysis Of The Provision Of Public Goods In Sri Lanka, Arusha Cooray
Faculty of Business - Papers (Archive)
This study investigates the influence of ethnic and political fractionalisation on the provision of public goods at a district level in Sri Lanka. Evidence shows that political fractionalisation has a greater negative impact on the provision of public goods compared with ethnic fractionalisation. Similarly, political polarisation has a greater negative effect on the provision of public goods compared with ethnic polarisation. The interaction between ethnic and political measures suggests that political fractionalisation (political polarisation) exacerbates the negative effects of ethnic fractionalisation (ethnic polarisation) on the provision of public goods. The ethnolinguistic fractionalisation (ELF) index assumes greater statistical significance under fixed …
Does Political Capital Create Value In The Ipo Market? Evidence From China, Qigui Liu, Jinghua Tang, Gary Gang Tian
Does Political Capital Create Value In The Ipo Market? Evidence From China, Qigui Liu, Jinghua Tang, Gary Gang Tian
Faculty of Business - Papers (Archive)
This study examines the value of political capital in the Chinese IPO market. We find a positive relationship between a politically connected executive and the probability of IPO approval of entrepreneurial firms. We further identify that shareholders value those connections and give a market premium to connected firms after the firms go public. We provide evidence that other types of political capital gained through external sources, such as politically connected sponsors and PE investors, also bring benefits to the firms in their IPO approval, and these connections substitute for the effect of the executive's political connections on IPO approval. We …
Political Connection, Founder-Manager And Their Impact On Tunneling In China's Listed Firms, Liangbo Ma, Shiguang Ma, Gary G. Tian
Political Connection, Founder-Manager And Their Impact On Tunneling In China's Listed Firms, Liangbo Ma, Shiguang Ma, Gary G. Tian
Faculty of Business - Papers (Archive)
Reciprocal relationship, often regarded as mutually beneficial and secure, can actually be destructive and result in inefficiency. We provide evidence of such double-blade by studying the impact of political connection on corporate governance. Private firms in countries where the government controls the allocation of resources have incentives to seek political connections by hiring politicians or ex-politicians as top executives. Such political capital, however, may turn into political constraint when the CEOs fail to perform but use connections to entrench themselves. We take advantage of the unique setting in China to illustrate this argument. We show that politically connected CEOs have …
The Stock Market Implication Of Political Connections: Evidence From Firms' Dividend Policy, Jerry Cao, Sheng Huang, Qigui Liu, Gary G. Tian
The Stock Market Implication Of Political Connections: Evidence From Firms' Dividend Policy, Jerry Cao, Sheng Huang, Qigui Liu, Gary G. Tian
Faculty of Business - Papers (Archive)
Political connections are valuable for shareholders of privately-run firms especially in countries with weak legal institutions. We study the effect of a firm's political connections in the public equity market by focusing on its impact on the firms' dividend policy. Prior studies suggest that dividends signal the commitment for proper treatment of minority shareholders and thus high growth firms pay dividends to establish such a reputation for better access to equity market in the future. Using a sample of privately-owned Chinese firms, we find that politically connected firms are less likely to pay dividends and pay less if they pay. …
The Electoral Reform Campaigns In New Zealand: A Political Communication Case Study, Juliet Roper, Shirley Leitch
The Electoral Reform Campaigns In New Zealand: A Political Communication Case Study, Juliet Roper, Shirley Leitch
Faculty of Business - Papers (Archive)
Communication professionals employed in the public relations and advertising industries play a central role in the democratic process. They research, design, and implement the campaign strategies that attempt to influence voter choices and public policy. In New Zealand, some special legal restrictions are placed on the campaign activities of politicians during election campaigns. But, for corporations and interest groups, the ability to pay is the major controlling factor. It was within the context of this 'free market' of ideas that New Zealand held a referendum to decide whether or not to adopt a new electoral system. In spite of a …