Business Commons^™

China-Based Industrial Espionage, Joel Savary

Student Scholar Symposium Abstracts and Posters

On Oct 8, 2014 China has surpassed the United States as the world’s largest economy in terms of Purchasing Power Parity (PPP)” (IMF). My paper explores one of the instances of unlawful business practices that have contributed to China’s new world position. China based espionage undercuts American businesses and U.S. foreign policy directly, causing catastrophic economic implications for America, its businesses, and its allies. The U.S. government is grappling with the means and methods China uses to disseminate information stolen from U.S. businesses to support China based industries. Due to the lack of transparency in China, it has been difficult …

Disproportionate Ownership Structure And Ipo Long-Run Performance Of Non-Soes In China, Xiaoming Wang, Jerry Cao, Qigui Liu, Jinghua Tang, Gary Tian

Gary Tian

This paper examines the relationship between ownership structures and IPO long-run performance of non-SOEs in China. Although non-SOEs underperform the market in general after IPO but the poor performance is mainly caused by the IPOs with ownership control wedge. Non-SOEs with one share one vote structure outperform those with control-ownership wedge by 30% for three years post-IPO performance in adjusted buy-and-hold returns. Non-SOEs with control-ownership wedge have higher frequency of undertaking value-destroying related party transactions. These findings suggest that non-SOEs need to improve corporate governance such as disproportionate ownership structure to better safeguard the interest of long-run shareholders.

Does Banks' Dual Holding Affect Bank Lending And Firms' Investment Decisions? Evidence From China, Xiaofei Pan, Gary Tian

Gary Tian

This study investigates the effect of banks' dual holding on bank lending and firms' investment decisions using a sample of listed firms in China. We find that dual holding leads to easier access to bank loans, a result that is more pronounced for non-state-owned enterprises (non-SOEs) than SOEs. We also find that dual holding distorts banks' lending decisions and harms the investment efficiency for SOEs, while resulting in optimal lending decisions and enhanced investment efficiency for non-SOEs. For non-SOEs, further analysis suggests that optimal lending decisions and efficient investment can be achieved for firms with higher ownership concentration, and firms …

The Chinese Health Care System: An Analysis Of The Current And Emerging Health Care Needs, Karen Giuliano, Courtney Droms

Courtney Hatch

This paper presents an overview of the health care system, current and anticipated health care challenges, and the potential for medical technology to address the health care needs of the People’s Republic of China. The implications of these topics for the modification of current strategies or development of new technologies to address the current and emerging health care needs in China will be reviewed in order to assess the industry’s current plans for expansion of their operations to the health care market in the People’s Republic of China.

Rethinking Cross-Border Talent Management: The Emerging Markets Perspective, Tejpavan Gandhok, Richard Raymond Smith

Research Collection Lee Kong Chian School Of Business

A closer look at the relatively little understood issue of how and why emerging market MNCs manage their senior talent for international growth leads us to question the conventional wisdom on talent management practices.

Deeper Into China, Usu Jon M. Huntsman School Of Business

Jon M. Huntsman School of Business News Collection

The Huntsman School of Business and the Northwest University for Nationalities (NWUN), based in Lanzhou, China, announced an academic partnership to offer an undergraduate degree in International Economics. This is the fourth such partnership for the Huntsman School, which now counts over 900 students in China enrolled in a bachelor’s degree program in International Economics.

Exploring Cooperation Among The Brics: Organizational Implications Of Growing Brazil-China Business Relations, Jeffrey A. Kappen

Doctoral Dissertations

The early 21st century has witnessed the beginnings of change in the dominant patterns of global trade. For instance, the nations known as the BRICS (Brazil, Russia, India, China, and South Africa) have intensified the coordination of their economic, political and social agendas, including increased trade among their own firms. To date, however, scholarship in organization studies has yet to examine the theoretical and empirical implications for international management of these integrative processes. Intending to close some of this gap, the dissertation explores the formation of new transnational business relationships between firms of two BRICS members, Brazil and China. Building …

Technology Transfer Into China: Preparing For A New Era, Arnoud De Meyer

Arnoud DE MEYER

Currently, there are three forces creating a more favourable background for western multinational companies to do new business in China by transferring new technology. First, growing overcapacity means China requires not traditional turnkey factories, but instead, technology which leads to innovation and improvement. Second, a changing attitude by all levels of Chinese government to demanding state-of-the-art technology including software instead of previous generation technology, and to technology management and commercial implementation more. Third, intellectual property rights are becoming better respected. The author makes suggestions to best manage technology transfer into China, with this changed background. Based on six case studies …

Technology Strategy And China's Technology Capacity Building, Arnoud De Meyer

Arnoud DE MEYER

China has the potential to become a major source of innovation for the world. The scientific investment is in place and rapidly growing. But in order to reap the benefits of this investment its organisations will have to become better at managing innovation. One of the key elements of innovation management is the determination and implementation of a sound technology strategy. The purpose of this paper is to offer a framework and a detailed overview of what it entails to develop and implement a technology strategy. The paper emphasizes the alignment of the strategy with the organisational competencies and the …

Cross-Border Mergers And Acquisitions In China: A Test Of The Free Cash Flow Hypothesis, Yane Chandera, Lukas Setia Atmaja

The Indonesian Capital Market Review

This research investigates whether Chinese cross-border investments have positive impact on shareholders wealth and whether the amount of bidders’ free cash flow influences the shareholder returns resulted from the acquisitions. The sample is based on 77 top Chinese cross-border investments during the years 2005-2009 with each deal value of minimum US$100 million. The assessments of acquisition abnormal returns are based on the event study methodology (Brown & Warner, 1985). Cross-sectional regression analysis is used to determine the bidding firms factors which significantly affect the returns. Factors are examined using OLS with White’s heteroscedasticity-corrected standard errors, since the assumption of homoscedasticity …

An Empirical Study On Use Of Social Media In The Hotel Industry In China: A Study Of Customers’ Preferences And Attitudes, Ruolin Wang, Tianyue Chen

MBA Student Scholarship

With the development of the technology, business corporations start to use social media to promote their businesses. This study focuses on the preferences and attitudes of travelers’ in China with the relationship between usage of social media (based on WeChat and Sina Weibo) with the option of hotel choice in the hospitality industry. There are two instruments used in this study: (1) sending out online surveys and (2) scheduled interviews with people who are working in the hotel industry. From our survey data (N=245) were participants who completed questionnaires located all over China. However, the results of the study indicate …

Can Brazilian Firms Survive The Chinese Challenge: Effects Of Globalization On Markets, Strategies, And Performance, Syed H. Akhter, Paulo Fernando Pinto Barcellos

Syed H. Akhter

Purpose – The purpose of this paper is to apply the structure-conduct-performance theory and the strategic fit concept to examine the effects of globalization on markets, strategies, and performance of business-to-consumer firms in Brazil. Design/methodology/approach – The paper takes a qualitative approach to answer the research questions. Top decision makers such as president, chief executive officer, chairman of the board, vice president, and director of the companies were interviewed. The elite approach to in-depth interviewing was followed to obtain reliable information from the decision makers. Findings – Findings indicate that globalization and especially the entry of Chinese firms significantly changed …

Evolution Of Food Quality Demand In The Food Service Industry In China: The Case Of Duck, Rachel Alison Carnegie

Open Access Theses

Booming economic growth and rising consumer incomes have impacted food preferences and purchasing behavior in China. At the same time, several internationally publicized food safety incidents, particularly in the animal husbandry sector, have heightened awareness of and concern for food safety and quality in meat and dairy. Rising quality demand and safety concerns have been studied at length in the food retail sector, but also appear to be important in the food service industry. This research uses data from a survey of duck restaurant managers and consumers in Beijing, Shanghai, Chengdu, and Guangzhou to determine preferences and willingness to pay …

Refocusing The Lens: Singapore's Private Enterprises In China, Caroline Yeoh, Wilfred Pow Ngee How, Ye Zhang

Caroline Yeoh

In recent years, financial and political instabilities have cooled economic growth in many regions. Even in this context, however, areas of strong growth remain; none, arguably, more prominent than ever-developing and increasingly affluent China, which is today a vastly different environment than even several years ago. More than ever, a wealth of opportunity subsists in this ancient land – and businesses must be able to adapt and seize these opportunities. Thus we turn towards Singapore private enterprise in China, to study once more the efficacy of the city-state's internationalization strategies in the context of the private enterprises which must eventually …

Eyes On Casino Gaming In China: Residents' Attitudes Toward Casino Gaming Development In Sanya City, A Pre-Casino Establishment Analysis, Omar Moufakkir, Dallen Timothy

UNLV Gaming Research & Review Journal

While Macau offers world class casinos, casino gaming is not legalized in Mainland China. Current media reports, however, indicate a growing interest by the Chinese government in establishing casinos in the Hainan Province. This study assesses the perceptions of residents about potential gaming development in their community. Resident attitude surveys have been used by planners and policymakers in order to gain local support for tourism projects and initiatives. A series of hypotheses were tested. In particular, the study evaluates the difference in perception between tourism workers and non-tourism workers, residents who live in the city center where the casino development …

Multinational R&D In China: Differentiation And Integration Of Global R&D Networks, Jian Wang, Zheng Liang, Lan Xue

Jian Wang

1,101 Graduates, Usu Jon M. Huntsman School Of Business, Klydi Heywood

Jon M. Huntsman School of Business News Collection

The Huntsman School of Business graduated 1,101 students with 676 at the undergraduate commencement ceremony in Logan on May 5, and 284 earning graduate degrees. The Huntsman Program in China graduated 141 of the undergraduate students.

An Oreo With Chinese Characteristics, Srinivas K. Reddy

Research Collection Lee Kong Chian School Of Business

In late 2005, Shawn Warren, head of biscuits, Asia Pacific for Kraft, was in desperate need of a quick turnaround strategy. Oreo, after nearly 10 years in the China market was facing the imminent disaster of being completely pulled from the shelves. Local retail channels, along with company headquarters near Chicago, had finally grown impatient of the iconic product's lacklustre sales. When Warren described the turnaround in March 2012, he said, "The first step to solving a problem is to admit you have one. We are committed to have this brand and put resources behind it."

Causes And Consequences Of Corporate Asset Exchanges By Listed Companies In China, Fang Lou, Jiwei Wang, Hongqi Yuan

Research Collection School Of Accountancy

China's listed companies often exchange corporate assets with their parent companies. We find that listed companies that have been incompletely restructured from former state-owned enterprises and in sound financial condition tend to exchange higher quality assets for lower quality assets (i.e., tunneling). However, when there is a need to avoid reporting a loss and to raise additional capital, listed companies tend to exchange lower quality assets for higher quality assets (i.e., propping). We also find that the market reacts indifferently to asset exchange announcements. Finally, we find asset exchanges motivated by a tunneling (propping) incentive to be associated with poorer …

Impacts Of China’S Foreign Direct Investment In Sub-Saharan Africa, Jian Zhang, Ilan Alon, Yanan Chen

Faculty Publications

This paper examines the impacts of foreign direct investment, as well as China’s FDI on GDP growth of Sub-Saharan African countries from a macroeconomic perspective. By using the data from 44 Sub-Saharan African countries from 2003-2010, our GMM results show that neither China’s FDI nor FDI net inflow in SSA has significant effect on economic growth of SSA countries. The possible explanations about the insignificant results include crowding out effect of China’s FDI on domestic investment, the declining in outward FDI in traditional sectors and rising in service sector which ignored in the current model, and the types of sectors …

Chemical And Anode Manufacturing Company, Daniel R. Sterkenburg

Business Administration Faculty Publications

No abstract provided.

Business As Mission In And From China: Bam Think Tank China Regional Group Report, Tony Yeung, Linda Ching, Michael Lam, James Chak, Sara S., Daniel R. Sterkenburg

2014 Author Recognition Bibliography

No abstract provided.

Glory Tent, Now Closed, Daniel R. Sterkenburg

Business Administration Faculty Publications

No abstract provided.

Electronics Manufacturing, Now Bankrupted, Daniel R. Sterkenburg

Business Administration Faculty Publications

No abstract provided.

Does Bank Ownership Imply Efficient Monitoring? Evidence From Bank Lending And Firm Investment Efficiencies In China, Gary G. Tian, Xiaofei Pan

Gary Tian

This study investigates the effect of bank ownership on lending and firm investment efficiencies to give reasons for the mixed evidence that exists on the impact of bank ownership on firm performance. Using China's listed firms as an example, we find that bank ownership reduces the efficiency of bank lending and harms investment efficiency for state-owned enterprises (SOEs), while simultaneously relating to optimal lending decisions and enhanced investment efficiency for non-SOEs. Our findings suggest that banks monitor non-SOEs effectively, but are less effective at monitoring SOEs. We document that banks' ex post monitoring on non-SOEs' investment policy results from their …

Bank Connection, Corruption And Collateral In China, Xiaofei Pan, Gary Tian

Gary Tian

Using a sample of China's listed entrepreneurial firms, we investigate the relationship between bank connection, corruption and collateral requirements. We find that when a firm is connected with banks, collateral requirements are significantly lower. We also find that bank connection is the channel through which corruption is exercised to benefit those firms with favoured loan terms. Our analysis further reveals that bank connection and corruption have jointly improved bank lending efficiency. However, these positive effects become weaker with government intervention in the form of an economic stimulus package. We argue that in an emerging market, bank connection facilitates rent seeking …

Political Connection, Founder-Manager And Their Impact On Tunneling In China's Listed Firms, Liangbo Ma, Shiguang Ma, Gary G. Tian

Shiguang Ma

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 …

Does Political Capital Create Value In The Ipo Market? Evidence From China, Qigui Liu, Jinghua Tang, Gary Gang Tian

Qigui Liu

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 …

China's Regulatory Framework For Outward Foreign Direct Investment, Karl P. Sauvant, Victor Zitian Chen

Karl P. Sauvant

Who Is Responsible For The Co2 Emissions That China Produces?, Ying Liu, Kankesu Jayanthakumaran, Frank Neri

Kankesu Jayanthakumaran

Most climate scientists around the world are concerned about global warming. These concerns have resulted in calls for reductions in CO2 emissions over time. If these calls are to be heeded, an appropriate emissions accounting method must first be agreed upon by CO2 emitting countries, none of which are more important than China. This paper estimates China′s CO2 emissions in 2002 and in 2007 using firstly a production-based, and then a consumption-based, accounting method, both in aggregate and at the sectoral industry level. Our objectives are first to investigate the recent trends in Chinese emissions of CO2, and second to …