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Chinese Economic Activities In Sub Saharan Africa: A Substitute For Europe?, Ineke Keers, Bartjan J. W. Pennink Dr.
Chinese Economic Activities In Sub Saharan Africa: A Substitute For Europe?, Ineke Keers, Bartjan J. W. Pennink Dr.
The South East Asian Journal of Management
This paper aims to investigate if the Chinese economic ties with Sub Saharan Africa serve as a substitute for this existing European-African relationship. Three types of economic activities are studied to determine a possible substitution effect: 1) trade (imports and exports) 2) foreign direct investment (FDI) flows; and 3) development aid from China and the European Union towards six African countries. Because natural resources, especially oil, appear to be a driver for Sino-African trade this study focuses on oil-importing and oil-exporting African countries. The group of oil-importing African countries is formed by South Africa, Ghana, and Kenya. The oil-producing countries …
Industrial Diversification And Shareholders' Value In China: The Case Of Shanghai Listed Manucfaturing Firms, Henk Von Eije, Jiong Jin
Industrial Diversification And Shareholders' Value In China: The Case Of Shanghai Listed Manucfaturing Firms, Henk Von Eije, Jiong Jin
The South East Asian Journal of Management
The fast growing economy and institutional and economic reforms made the Chinese equity markets the third largest in Asia. This leads to strategies of industrial diversification within Chinese firms. Financial theory suggests that industrial diversification may have advantages in emerging markets, because conglomerates are better able to cope with market imperfections than focused firms. Moreover, diversification through investing in many shares may be costly in imperfect markets. Negative effects of diversification can be found if hubris generates too large take-over premiums or if managers consume perks related to company size. Also, tunneling and propping may reduce company value. We show …