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Full-Text Articles in Business
State-Owned Enterprises As Bribe Payers: The Role Of Institutional Environment, Noman Shaheer, Jingtao Yi, Sali Li, Liang Chen
State-Owned Enterprises As Bribe Payers: The Role Of Institutional Environment, Noman Shaheer, Jingtao Yi, Sali Li, Liang Chen
Research Collection Lee Kong Chian School Of Business
Our paper draws attention to a neglected channel of corruption—the bribe payments by state-owned enterprises (SOEs). This is an important phenomenon as bribe payments by SOEs fruitlessly waste national resources, compromising public welfare and national prosperity. Using a large dataset of 30,249 firms from 50 countries, we show that, in general, SOEs are less likely to pay bribes for achieving organizational objectives owing to their political connectivity. However, in deteriorated institutional environments, SOEs may be subjected to potential managerial rent-seeking behaviors, which disproportionately increase SOE bribe propensity relative to privately owned enterprises. Specifically, our findings highlight the importance of fostering …
The Association Of Hospital Governance With Innovation In Taiwan, Chen-Wei Yang, Yu-Hua Yan, Shih-Chieh Fang, Noorein S. Inamdar, Hsiencheng Lin
The Association Of Hospital Governance With Innovation In Taiwan, Chen-Wei Yang, Yu-Hua Yan, Shih-Chieh Fang, Noorein S. Inamdar, Hsiencheng Lin
Research Collection Lee Kong Chian School Of Business
Hospitals in Taiwan are facing major changes and innovation is increasingly becoming a critical factor for remaining competitive. One determinant that can have a significant impact on innovation is hospital governance. However, there is limited prior research on the relationship between hospital governance and innovation. The purpose of this study is to propose a conceptual framework to hypothesize the relationship between governance mechanisms and innovation and to empirically test the hypotheses in hospital organizations. We examine the relationship between governance mechanisms and innovation using data on 102 hospitals in Taiwan from the Taiwan Joint Commission on Hospital Accreditation and Quality …
Social Capital, Informal Governance, And Post-Ipo Firm Performance: A Study Of Chinese Entrepreneurial Firms, Jerry X. Cao, Yuan Ding, Hua Zhang
Social Capital, Informal Governance, And Post-Ipo Firm Performance: A Study Of Chinese Entrepreneurial Firms, Jerry X. Cao, Yuan Ding, Hua Zhang
Research Collection Lee Kong Chian School Of Business
Social capital can serve as informal governance in weak investor-protection regimes. Using hand-collected data on entrepreneurs' political connections and firm ownership, we construct several original measures of social capital and examine their effect on the performance of entrepreneurial firms in China after their initial public offerings. Political connections or a high percentage of external investors tend to enhance firm performance, but intragroup related-party transactions commonly lead to performance decline. These forms of social capital have a strong influence on the performance of Chinese firms, whereas formal governance variables such as board size or board independence have little effect. Although social …
A State-Stewardship View On Executive Compensation, Hao Liang, Luc Renneboog, Sunny Li Sun
A State-Stewardship View On Executive Compensation, Hao Liang, Luc Renneboog, Sunny Li Sun
Research Collection Lee Kong Chian School Of Business
We take a state-stewardship view on corporate governance and executive compensation in economies with strong political involvement, where state-appointed managers act as responsible ‘stewards’ rather than ‘agents’ of the state. We test this view on China and find that Chinese managers are remunerated not for maximizing equity value but for increasing the value of state-owned assets. Managerial compensation depends on political connections and prestige, and on the firms’ contribution to political goals. These effects were attenuated since the market-oriented governance reform. In a social welfare perspective, such compensation stimulates not the maximization of shareholder value but the preservation of the …
An Anatomy Of State Control In The Globalization Of State-Owned Enterprises, Hao Liang, Bing Ren, Sunny Li Sun
An Anatomy Of State Control In The Globalization Of State-Owned Enterprises, Hao Liang, Bing Ren, Sunny Li Sun
Research Collection Lee Kong Chian School Of Business
Integrating agency theory with institutional analysis in international business, we propose a state-control perspective to analyze government-control mechanisms in emerging economies’ globalization of state-owned enterprises (SOEs). We identify two types of state control that influence SOEs’ globalization decisions and the degree of globalization: state ownership control and executives’ political connections, both of which are contingent upon the home country’s evolving institutional environments. Using a two-step corporate globalization decision model and 17,272 firm-year observations of non-financial, Chinese-listed companies, we find a strong impact of both types of state control on SOEs’ globalization, although the impacts differ between the periods before and …
Cash Is Suprisingly Valuable As A Strategic Asset, Changhyun Kim, Richard A. Bettis
Cash Is Suprisingly Valuable As A Strategic Asset, Changhyun Kim, Richard A. Bettis
Research Collection Lee Kong Chian School Of Business
Academics, politicians, and journalists are often highly critical of U.S. firms for holding too much cash. Cash holdings are stockpiled free-cash flow and incur substantial opportunity costs from the perspectives of economics. However, behavioral theory highlights the benefits of cash holdings as fungible slack resources facilitating adaptive advantages. We use the countervailing forces embodied in these two theories to hypothesize and test a quadratic functional relationship of returns to cash measured by Tobin's q. We also build and test a related novel hypothesis of scale-dependent returns to cash based on the competitive strategy concept of strategic deterrence. Tests for both …
Social Capital, Informal Governance, And Post-Ipo Firm Performance: A Study Of Chinese Entrepreneurial Firms, Jerry X. Cao, Yuan Ding, Hua Zhang
Social Capital, Informal Governance, And Post-Ipo Firm Performance: A Study Of Chinese Entrepreneurial Firms, Jerry X. Cao, Yuan Ding, Hua Zhang
Research Collection Lee Kong Chian School Of Business
This paper explores the links between entrepreneurs' social capital and post-IPO firm performance in China's unique capital market and regulatory setting. Using hand-collected data on entrepreneurs' political connections and firm financial information, we construct original measures for various types of social capital and examine their roles in determining the accounting and financial performance of entrepreneurial firms after an IPO. On one hand, firm accounting performance is enhanced by entrepreneurs' bridging social capital, such as political connections or a willingness to share power with external investors. On the other hand, bonding social capital such as intra-group related party transactions causes performance …
Firm Capability, Corporate Governance, And Firm Competitive Behavior: A Multi-Dimensional Framework, Jinyu He, Joseph T. Mahoney, Heli Wang
Firm Capability, Corporate Governance, And Firm Competitive Behavior: A Multi-Dimensional Framework, Jinyu He, Joseph T. Mahoney, Heli Wang
Research Collection Lee Kong Chian School Of Business
In this paper, we propose two possible remedies for corporate governance research. First, when examining the effects of corporate governance, researchers may want to simultaneously consider the role of firm resources and capabilities. Second, linking corporate governance with firm-level competitive behaviour rather than with firm-level performance may enable researchers to detect more nuances about the effects of corporate governance. We base our propositions on the notion that 'capability' and 'motivation' are the two fundamental drivers of firm competitive behaviour. Firm resources/capabilities, which correspond to the capability driver, define the potential level of a firm's competitive activity. Further, corporate governance, by …
Ownership And The Internationalization Of Small Firms, Gerard George, Johan Wiklund, Shaker A. Zahra
Ownership And The Internationalization Of Small Firms, Gerard George, Johan Wiklund, Shaker A. Zahra
Research Collection Lee Kong Chian School Of Business
Small and medium-sized enterprises (SMEs) play an important role in international markets. This study argues that the ownership structures of SMEs influence their proclivity to take risks and expand the scale and scope of their internationalization efforts. Data from 889 Swedish SMEs reveal that internal owners (CEOs and other senior executives) tend to be risk averse and have a lower proclivity to increase scale and scope of internationalization than external owners (venture capitalists and institutional investors). The results provide interesting insights into the behavioral change of executives regarding the scale and scope of internationalization in the presence of external ownership.
The Performance Implications Of Ownership Driven Governance Reform, Toru Yoshikawa, Phillip H. Phan
The Performance Implications Of Ownership Driven Governance Reform, Toru Yoshikawa, Phillip H. Phan
Research Collection Lee Kong Chian School Of Business
This paper explores the performance impact of recent changes in foreign shareholdings and boardroom reforms in Japan. Empirical research on the impact of reform on the Japanese corporate governance system could provide useful lessons for their European counterparts who are themselves facing similar pressures to reform. We found that although participation of outside directors in strategic decision-making was associated with positive stock returns, the increase in the ratio of outside directors, the separation of the board members and executive officers, and the reduction of board size were not related to firm performance.
Privatization In Emerging Economies: An Agency Theory Perspective, Bavi Dharwadkar, Gerard George, Pamela Brandes
Privatization In Emerging Economies: An Agency Theory Perspective, Bavi Dharwadkar, Gerard George, Pamela Brandes
Research Collection Lee Kong Chian School Of Business
The ineffectiveness of several privatized firms within emerging economies underscores the importance of agency theory issues and their impact on the privatization-performance relationship. The authors argue that weak governance and limited protection of minority shareholders intensify traditional principal-agent problems (perquisite consumption and entrenchment) and create unique agency problems (expropriation). The authors suggest that postprivatization performance can be enhanced by using appropriate ownership, management, and corporate structures that mitigate agency problems in the context of weak governance, and they highlight avenues for research.