Business Commons^™

Avoiding China's Capital Market: Evidence From Hong Kong-Listed P-Chips And Red-Chips, Weishi Jia, Grace Powell, Jingram Zhao

Business Faculty Publications

The purpose of this paper is to explore the puzzle of why so many Chinese firms eschew listings in China. Hundreds of firms founded in China have reorganized themselves as overseas corporations and listed on the Hong Kong Stock Exchange. These firms are called Red-chips if they are state-owned enterprises (SOEs) and Pchips if they are not state-owned (non-SOEs). To examine the rationale behind the listing decisions of P-chips and Red-chips, we compare the characteristics of Red-chips (P-chips) with SOEs (non-SOEs) listed on China stock exchanges. We find that SOEs are more likely to list in China. Moreover, while we …

Nassimbeni And Sartor, Sourcing In China (2006), Degan Yu, Mehmet G. Yalcin

Markets, Globalization & Development Review

No abstract provided.

Global Range And Eclectic Potpourri, Nikhilesh Dholakia, Deniz Atik

Markets, Globalization & Development Review

No abstract provided.

Agency Theory And Corporate Governance In China: A Meta-Analysis, Canan C. Mutlu, Marc Van Essen, Mike W. Peng, Sabrina F. Saleh

Faculty and Research Publications

Do agency theory-based “good corporate governance” principles indeed apply to China? A straightforward answer to this question is lacking, because evidence is inconclusive across studies. We endeavor to fill this gap by conducting the first meta-analysis on the China literature with two focuses. First, we assess the impact of (i) board independence, (ii) board leadership structure, and (iii) managerial incentives on firm performance, as these elements have been central to both agency theory as well as to Chinese corporate governance reforms. Second, we extend current theorizing by showing support for the temporal hypothesis, which states that over time, with the …

Collective Narcissism, Anti-Globalism, Brexit, Trump, And The Chinese Juggernaut, Russell Belk

Markets, Globalization & Development Review

Brexit and the election of Trump both relied on a particular type of nationalistic appeal to collective narcissism — an exaggerated emotional belief that the nation’s greatness is being undermined by other nations and other people. This tendency is catered to by appeals to make the nation great again by shutting borders and embracing isolationism while scapegoating refugees and immigrants. The rise of jingoistic leaders like Trump, Putin, and Erdogan can be explained by such appeals. But China, which has long suffered feelings of national humiliation is reacting in quite different ways that embrace globalism, even while rejecting multiculturalism. This …

Will War's Nature Change In The Seventh Military Revolution?, F. G. Hoffman

The US Army War College Quarterly: Parameters

This article examines the potential implications of the combinations of robotics, artificial intelligence, and deep learning systems on the character and nature of war. The author employs Carl von Clausewitz’s trinity concept to discuss how autonomous weapons will impact the essential elements of war. The essay argues war’s essence, as politically directed violence fraught with friction, will remain its most enduring aspect, even if more intelligent machines are involved at every level.

Geopolitics Of Rare Earth Elements, Bert Chapman

Libraries Faculty and Staff Presentations

Rare earth elements (REE) contain unique chemical physical properties such as lanthamum, are found in small concentrations, need extensive precise properties to separate, and are critical components of modern technologies such as laser guidance systems, personal electronics such as IPhones, satellites, and military weapons systems as varied as Virginia-class fast attack submarines, DDG-51 Aegis destroyers, the F-35 Joint Strike Fighter, and precision guided munitions. The U.S. has some rare earth resources, but is heavily dependent on access to them from countries as varied as Afghanistan, Bolivia, and China. Losing access to these resources would have significant adverse economic, military, and …

Transshipment Hub Selection From A Shipper’S And Freight Forwarder’S Perspective, Gang Chen, Waiman Cheung, Sung-Chi Chu, Liang Xu

Research Collection Lee Kong Chian School Of Business

Transshipment hub selection becomes increasingly important to the global logistics community. From the perspectives of shippers and freight forwarders, a selection must align with cost control strategy and sustain service reliability across cooperative service providers. This paper assesses the selection with the options of both sea and air transports, and from the influence of country of origin of the company. Critical factors of transshipment hub selection, both qualitative and quantitative, are identified through focus group discussions. Relative importance of these factors is determined based on collective views of logistics stakeholders. The competitiveness of transshipment hubs is then assessed using an …

What Could Tourism Do To A Small Fishing Village: A Case Study Of The City Of Weihai, China, Babu P. George

Babu George

Weihai City, located on the east end of Shandong Peninsula in Northeastern China was once a small and remote fishing village. In recent years Weihai City has become one of the most popular tourism destinations in China. The tremendous development of tourism has had a significant impact on Weihai’s economy, physical environment, and culture. Weihai is now famous for the beautiful coastal scenery, high quality leisure living, and a strong Korean and increasingly Russian influence. This study examines the perception of Weihai residents on the position of Weihai as a tourist destination and also their vision of Weihai’s future tourism …

Farmers' Cooperatives In China: A Typology Of Fraud And Failure, Zhanping Hu, Qian Forrest Zhang, John A. Donaldson

Research Collection School of Social Sciences

Since the 1990s, agricultural cooperatives—particularly what China calls Farmers’ Specialized Cooperatives—have experienced rapid expansion in China. After more than two decades of growth and policy support, what is the overall performance of the ever-increasing numbers of these cooperatives? We visited 50 cooperatives across the country, most of which had officially been lauded as successful, to make a first-hand evaluation of their overall status and performance. We argue that, judging by either international or Chinese standards, the vast majority of these agricultural cooperatives are not authentic and fail to deliver expected benefits to smallholders. We categorize them into five types: genuine …

Essays On Corporate Finance, Sili Zhou

Dissertations and Theses Collection

Economic, Policy uncertainty under political opaqueness imposes great impact in the capital market. I construct ex ante cross-section of firm sensitivity to China Economic Policy Uncertainty (CEPU) index from Baker, Bloom and Davis (2013). This measure of policy sensitivity is significantly negatively predictive of a firm’s market value and Tobin’s Q. Cross sectional tests show that the negative effects are stronger in SOEs= for firms with higher agency problems, and for firms operating in market with lower degree of competition or market disciplining. The evidence suggests that high level of policy influence causes significant value destruction in the capital market.

Artificial Islands In The South China Sea, Aaron Holmes

OSR Journal of Student Research

The purpose of this study was to understand the value and implications of artificial islands constructed by the People's Republic of China (PRC) in the South China Sea. Qualitative analysis was used with the available literature, sources, and treaties of the topics concerned. The paper concludes that the PRC gains many benefits primarily within the realm of energy security and explores what effects they may

Foxconn: Not Entirely An Ocean Away, Shana Fee

OSR Journal of Student Research

No abstract provided.

Catch-Up Via Agglomeration: A Study Of Township Clusters, Liangding Jia, Sali Li, Stephen Tallman, Yaqin Zheng

Management Faculty Publications

This study examines whether the premises of inter-firm competition and cooperation on cluster performance outcome hold true in the context of China. By examining 87 township clusters in Jiangsu Province, we find that cluster performance is co-determined by the intensity of inter-firm competition and cluster innovativeness. Our results also show that the cluster's competitive intensity mediates the relationship between cluster size and cluster performance, and that a cluster's R&D centers and inter-firm joint actions positively affects a cluster's innovativeness, which in turn contributes to cluster performance. These findings not only provide additional support for strategy theories about clusters in a …

Why Do Publicly Listed Firms Evade Taxes: Evidence From China, Travis Chow, Bin Ke, Hongqi Yuan, Yao Zhang

Research Collection School Of Accountancy

Taking advantage of the mandatory disclosure of detected corporate tax evasions in China, we examine why publicly listed firms evade taxes. Different from most prior studies that focus on corporate income tax avoidance, we consider tax evasions related to both income taxes and non-income taxes. We also use a bivariate probit model to account for the partial observability of corporate tax evasion. Many of our regression results using the bivariate probit model are different from the results using the reduced form probit model that ignores the partial observability of tax evasion. Many of our results are also different from those …

Economic, Cultural, And Political Influences Of The West In China (1940-Present), Liam Mccorry

HON499 projects

China has experienced extreme change politically, culturally and economically in a short amount of time. This paper examines the role of the West in the development of China as we know it today. It is broken into four sections: The Rise of Communism, China As a Planning Economy, Re-linking the Global Economy, and Modern China. Each period will be evaluated based upon the role that Western governments and companies have played in transforming China.

Rent Appropriation Of Knowledge-Based Assets And Firm Performance When Institutions Are Weak: A Study Of Chinese Publicly Listed Firms, Cuili Qian, Heli Wang, Xuesong Geng, Yangxin Yu

Research Collection Lee Kong Chian School Of Business

A firm's strategic investments in knowledge-based assets through research and development (R&D) can generate economic rents for the firm, and thus are expected to affect positively a firm's financial performance. However, weak protection of minority shareholders, weak property rights, and ineffective law enforcement can allow those rents to be appropriated disproportionately by a firm's powerful insiders such as large owners and top managers. Recent data on Chinese publicly listed firms during 2007-2012 were used to demonstrate that the expected positive relationship between knowledge assets and performance is weaker in transition economies when a firm's ownership is highly concentrated and its …

Do Politically Connected Directors Affect Accounting Quality? Evidence From China's Anti-Corruption Campaign (Rule 18), Ole-Kristian Hope, Heng Yue, Qinlin Zhong

Research Collection School Of Accountancy

We examine the impact of politically connected directors on accounting quality using a quasi experiment in China. In October 2013, “Rule 18” was issued to prohibit government and party officials, who were concurrently holding public offices or had recently retired from such positions within the last three years, from serving as directors for publicly listed firms. The regulation is part of China’s anti-corruption campaign, and it has led to a large number of politically connected directors resigning from their roles as directors involuntarily. As such, Rule 18 has effectively weakened, if not fully discontinued, the political connections of the firms …

At The Intersection Of History, Diplomacy, And Domestic Affairs: Vietnam’S Difficult Position In The South China Sea Dispute, Michael Lanin

Independent Study Project (ISP) Collection

Connecting the entirety of Southeast Asia to the Indian and Pacific Oceans, the South China Sea is among the world’s most vital commercial and strategic arenas. Robust shipping lanes funnel several trillion dollars in trade through the South China Sea annually; and lucrative fisheries and potentially vast hydrocarbon resources fill its waters. The South China Sea also hosts a tremendously complex geopolitical puzzle which hinges on overlapping maritime sovereignty claims made by Vietnam, China, Philippines, Malaysia, Taiwan, and Brunei. The ensuing multilateral dispute has escalated tensions in the region, leading to intense militarization, diplomatic gridlock, and trivialization of international law. …

Institutional Regime Shift In Intellectual Property Rights And Innovation Strategies Of Firms In China, Kenneth G. L. Huang, Xuesong Geng, Heli Wang

Research Collection Lee Kong Chian School Of Business

This study develops a novel conceptual framework to understand the differential impact of formal institutional regime shift in intellectual property rights on the innovation and patenting strategies of Chinese and Western firms operating in China. We argue that to the extent that Chinese firms have been deeply embedded in China’s informal institutions,they are less responsive to formal institutional changes than Western firms operating in China. Using the major China patent law reform of 2001 as an exogenous event, we find results consistent with our key arguments: With the strengthening of the previously weak (utility model) patent protection, Chinese firms are …

Determinants Of Urban Land Supply In China: How Do Political Factors Matter?, Wen-Tai Hsu, Xiaolu Li, Yang Tang, Jing Wu

Research Collection School Of Economics

This paper explores two political factors for their potential effects on urban land supply in China: corruption, and competition for promotion. We find that standard urban economic predictions hold in the sense that both population and income increases are strongly significant determinants for the increase in urban land supply. Conditional on these demand-side factors, we find that the usage of two-stage auctions (as a proxy for corruption) is highly correlated with the increase in land supply. The corruption effects are strongest for commercial land, followed by residential land and then industrial land. To shed light on the competition motives among …

Institutional Regime Shift In Intellectual Property Rights And Innovation Strategies Of Firms In China, Kenneth Guang-Lih Huang, Xuesong Geng, Heli Wang

Research Collection Lee Kong Chian School Of Business

This study develops a novel conceptual framework to understand the differential impact of formal institutional regime shift in intellectual property rights on the innovation and patenting strategies of Chinese and Western firms operating in China. We argue that to the extent that Chinese firms have been deeply embedded in China’s informal institutions, they are less responsive to formal institutional changes than Western firms operating in China. Using the major China patent law reform of 2001 as an exogenous event, we find results consistent with our key arguments: With the strengthening of the previously weak (utility model) patent protection, Chinese firms …

Multinational Firms And Cash Holdings: Evidence From China, Weijun Wu, Yang Yang, Sili Zhou

Research Collection Lee Kong Chian School Of Business

To adapt to globalization, Chinese multinational firms have more exploitation of cash. This paper shows that Chinese multinational corporations (MNCs) do not hold significantly more cash relative to domestic firms unless these multinationals heavily relay on the foreign sales. In addition, the multinationals of non-State-Owned Enterprises (Non-SOEs) exhibit the insignificant difference in cash holdings for non-multinationals. We also find that Chinese MNCs invest more but are less profitable, especially in non-SOE subsample. Overall, we conclude that the need of cash liquidity of multinational corporations in China is different from those in U.S.

An Investment Analysis For China's Sustainable Development Based On Inverse Data Envelopment Analysis, Lei Chen, Ying-Ming Wang, Fujun J. Lai, Feng Feng

Faculty Publications

In the face of environmental degradation, sustainable development has become a common goal across the globe. Making a scientifically based investment scheme is of great significance to promote the sustainable development of China's economy. However, there is scarce research related to such an investment scheme of sustainable development. This paper proposes a new inverse data envelopment analysis method with undesirable outputs to make several scientifically based investment schemes from different perspectives, namely, the natural, regulation, and optimal perspectives. By this method, decision makers can scientifically forecast the specific amount of investment based on their actual sustainable development objectives, which …

Determinants Of Urban Land Supply In People's Republic Of China: How Do Political Factors Matter?, Wen-Tai Hsu, Xiaolu Li, Yang Tang, Jing Wu

Research Collection School Of Economics

This paper explores whether and how corruption and competition-for-promotion motives affect urban land supply in the People's Republic of China. Conditional on demand-side factors, we find that corruption is highly correlated with an increase in land supply. The corruption effects are strongest for commercial land, followed by residential land, and then industrial land. To shed light on the competition motives among prefectural leaders, we examine how the number of years in office affects land supply and distinguish among different hypotheses. Our empirical results show robust rising trends in land sales. These results are consistent with the hypothesis that among prefectural …

Community Sport Service Provision, Resident Satisfaction, And Participation, Liangjun Zhou, Xiaoying Chen, Beth A. Cianfrone, Jerred Junqi Wang, Nathan David Pifer, James J. Zhang

Association of Marketing Theory and Practice Proceedings 2017

Advocating for the “gold medal strategy”, China has made great advancements in elite sports; however, the significant achievement in elite sports has not translated into the development of mass sport participations. To form a stronger foundation of a sport pyramid, more attention should be directed to community sports and promoting healthy lifestyles. The purpose of this study was to examine the impact of community sport service provisions on participants’ satisfaction and in turn on their sport participation behavior. In the current study, the public sport service in community includes sport facilities, sport organizations, sport programs, fitness test, and volunteer services …

The Impact Of Marketization On Entrepreneurship In China: Recent Evidence, Yang Zhou, Joshua C. Hall

Economics Faculty Working Papers Series

While marketization has been linked to provincial-level economic growth in China, how marketization leads to growth has not been explored. We hypothesize that marketization creates an environment that encourages entrepreneurship, which manifests itself in economic growth. While this argument is not new, it has not been explored in the Chinese context. We fill this gap by empirically testing the relationship between marketization and measures of entrepreneurship across Chinese provinces. Our primary measures of entrepreneurship are level changes in the number of “private enterprises” and “self-employed individuals”. We find that higher levels of marketization are positively related to higher levels of …

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 …

Australian Real Estate Stock Reactions To Firb Regulation Changes, Henry Wei

CMC Senior Theses

This study analyzes the share price reactions to real estate development and building/construction materials corporations in relation to FIRB rule changes. It appears companies as a whole were indifferent to the rule changes; however individual securities returns were wildly different. These findings suggest that the FIRB rule changes had a mixed effect on different corporations possibly based on their exposure to the Australian real estate market.