Management Review

Research on the Influence of Investor Sentiment on the Industrial Companies’ Financialization from the Perspective of Behavioral Finance

Yang Songling, Niu Dengyun, Liu Tingli, Wang Zhihua

2021, 33 (6): 3-15.

Abstract ( 331 )

PDF (1233KB) ( 409 )

Against the backdrop of increasingly prevailing financial asset allocation in industrial companies, corporate financialization is becoming a common focus of academia and industry. While existing researches mainly concentrate on the analysis of incentives at the macro level, there is still a lack of research to provide micro-evidence in the emerging markets. Consequently, this paper studies non-financial and non-real estate listed firms by conducting theoretical analysis, model deduction and empirical test, and depicts the impact of investor sentiment on the financialization of entity enterprise from the perspective of behavioral finance. The results show that the mispricing of stocks caused by investors’ sentiment will significantly increase the level of financialization of industrial companies. Meanwhile the degree of equity financing dependence and the level of managerial compliance will strengthen the positive relationship between the two. Further, the above-mentioned relationship varies significantly among enterprises with different property rights and in different economic periods. From the perspective of behavioral finance, the paper expands the research on the mechanism of financialization of entity enterprise, which helps identify the role of market sentiment in the allocation of financial assets, and provides a theoretical basis for regulators to manage market sentiment and standardize the process of equity financing. This paper also helps industrial companies and minority investors to circumvent the risks and speculation in the investment and financing process.

References | Related Articles | Metrics

Liquidity Marginal Cost and Asset Price Behavior

Wang Chunfeng, Xiang Jiankai, Li Yang, Fang Zhenming

2021, 33 (6): 16-28.

Abstract ( 262 )

PDF (1359KB) ( 199 )

This study calculates a new indicator of liquidity named liquidity marginal cost in order to reflect the size of price impact from order flow. This research verifies the effects of liquidity marginal cost on asset price behavior from the perspective of market microstructure and price momentum. The empirical results show that: first, the intraday dynamics of liquidity marginal cost present obvious L-type characteristics and stratification phenomenon. Second, liquidity marginal cost provides a stronger capability of explanation in short-run returns comparing with order flow imbalance. This conclusion remains constant after controlling the company’s market value, order flow imbalance, transaction time and market stage. Third, the effect of liquidity marginal cost on asset price momentum for small market value companies is more remarkable than that for large companies. It verifies that the market manipulation strategies are more appropriate for illiquid assets, which provides new empirical evidence for liquidity and market anomalies.

References | Related Articles | Metrics

Research on Risk Management of Enterprise Carbon Delivery Based on Carbon Emission Overdraft Insurance

Luo Jiaqi, Yang Xinyan, Yu Fangping, Kuang Haibo

2021, 33 (6): 29-40.

Abstract ( 299 )

PDF (1409KB) ( 188 )

In recent years, with the increasing carbon emission reduction efforts and the gradual reduction of the total carbon quota ceiling, the uncertainty of carbon emission costs faced by many emission control enterprises has increased significantly. For this reason, this study designs carbon settlement excess insurance under uncertain environment to help reduce the carbon delivery risk of emission control enterprises. First of all, combining with the current carbon emission reduction policy and carbon trading pilot mechanism, the basic form, term structure and compensation structure of carbon settlement excess insurance are designed. Secondly, with the help of real option theory, the insurance pricing model under the double random scenario of carbon emission and carbon quota trading price is constructed. The purchase cost and penalty cost under the background of excess emission behavior are mainly considered. The interval prediction method is used to determine the excess insurance premium of carbon settlement. Finally, Shanghai International Port (group) Co., Ltd. (SIPG), a typical pilot control and emission company, is selected for case analysis, which better demonstrates the rationality of the carbon delivery risk management by using carbon settlement excess insurance proposed in this study.

References | Related Articles | Metrics

Research on Global Asset Allocation Based on Asymmetric Dynamic Conditional Correlation

Gong Jianying, Wang Luyi, Ji Xiaodong

2021, 33 (6): 41-52.

Abstract ( 215 )

PDF (1382KB) ( 135 )

Global asset allocation diversifies the market risks and industry risks as well as idiosyncratic risks. Taking the stock market for example, this paper establishes an approach to select risky assets based on strategies of cross-markets and cross-industries, which provides a new viewpoint for investors to reduce the co-movement risks and achieve the wealth appreciation by global asset allocation. We estimate the asymmetric dynamic conditional correlation between international financial markets and determine a few candidate markets with lower correlation to diversify the market risks by market segmentation. Then some indices are designed to assess the quality of risky assets, which are used to select potential industries (risky assets) from candidate markets to construct the asset pool. Numerical experiments show that the proposed approach of selecting risky assets based on diversified strategies improves the quality of assets pool and performs better risk control than market benchmark. This paper aims to propose a general systematic method for investors to select risky assets and construct high-quality assets pool for global asset allocation.

References | Related Articles | Metrics

Financialization, Financial Constraint, and Corporate Performance——An Empirical Research Based on Non-financial Companies in China

Guo Lili, Xu Shan

2021, 33 (6): 53-64.

Abstract ( 275 )

PDF (1733KB) ( 301 )

Using the data of A-share non-financial listed companies from 2011 to 2016, this paper studies the impact of financialization on the corporate performance of non-financial companies in China, and explores its mechanism from the perspective of physical investment. The results show that the relationship between financialization and corporate performance is inverted U-shaped, and the physical investment plays a partially intermediary role in the impact of financialization on corporate performance. Specifically, financialization affects corporate performance through "crowding-out" the physical investment. With the introduction of corporate financial constraints, we find that in case of high financial constraints, companies tend to allocate physical investment to financial investment due to limited funds, and the negative impact of financialization on corporate performance is magnified; in contrast, in case of low financial constraints, corporate financing channels are broadened and expanded, and financial income can "back-feed" the real economy, thus enhancing the positive effects of financialization on corporate performance. Furthermore, financial constraints both negatively regulate the financialization-physical investment nexus and the physical investment-corporate performance nexus.

References | Related Articles | Metrics

Research on Property Insurance Demand of Export-dependent Firms: Empirical Evidence from Chinese Manufacturing Firms

Xiao Jinmei, Liu Meng, Hong Ruiling

2021, 33 (6): 65-75.

Abstract ( 146 )

PDF (1173KB) ( 117 )

Faced with the rise of anti-globalization forces and the trade war between China and the United States and other grim international trade situation, the uncertain factors in the foreign trade of export-dependent firms are increasing. Based on the perspective of external demand shock, this paper studies the impact of various factors on the property insurance demand of China’s export-dependent firms, which not only provide theoretical reference for the research on property insurance demand of export-dependent firms, but also provide empirical evidence for the purchase of property insurance of export-dependent firms. This paper innovatively analyzes the internal mechanism of firm property insurance demand from the perspective of external demand shock and puts forward relevant hypotheses, and constructs panel random effect Tobit model for an empirical test, and uses poisson regression and negative binomial regression models for an endogeneity test. It is found that the larger of the external demand impact, the smaller of the property insurance demand of export-dependent firms and the higher the interest cost, the higher the income tax rate, the lower the profitability the more the possession of tangible assets, the greater the demand of export-dependent firms to buy property insurance. Sub-sample regression results confirm that: Compared with non-state-owned export-dependent firms, property insurance demand of state-owned export-dependent firms is affected more significantly by the impact of external demand; Compared with the eastern core zone, export-dependent firms in the non-eastern core zone are affected more significantly by the impact of external demand.

References | Related Articles | Metrics

How to Build a Healthy Innovation Ecosystem in Hi-tech Industry? A Perspective Based on Core Competency

Song Hua, Chen Sijie

2021, 33 (6): 76-84.

Abstract ( 219 )

PDF (1252KB) ( 485 )

This paper explores the basic core competencies required to build a healthy innovation ecosystem in hi-tech industry from the perspective of core competence. Referring to previous studies on core competence, this paper constructs the core competence model of innovation ecosystem including coordination capability, knowledge accessing capability and innovation diffusion capability, which can comprehensively reflect the basic characteristics of innovation ecosystem that includes self-organization, emergence, co-evolution and adaptability. Empirical test indicates that coordination capability, knowledge-accessing capability and innovation diffusion capability could indeed exert positive effects on the health of innovation ecosystem. In addition, the roles of coordination capability and knowledge accessing capability in building a healthy innovation ecosystem are manifested in part through innovation diffusion capability, further highlighting the key role of innovation diffusion capability in innovation ecosystem.

References | Related Articles | Metrics

The Impact of R&D Investment on IPO Underpricing of GEM

Yang Yanping, Wang Linxin

2021, 33 (6): 85-97.

Abstract ( 207 )

PDF (1276KB) ( 127 )

Based on information asymmetry theory, certification supervision effect and signal transmission theory, a theoretical framework is constructed between R&D investment, IPO underpricing and venture capital. A total of 380 companies listed on China’s growth enterprise market (GEM) from 2014 to 2018 are selected to empirically test the impact of R&D investment on IPO underpricing, and analyze the moderating effect of venture capital on R&D investment and IPO underpricing from four aspects: risk-free investment, shareholding ratio, state-owned background and joint shareholding. The results show that the higher the R&D investment intensity of the first three periods of GEM listing, the more serious IPO underpricing will be. The involvement of venture capital intensifies the correlation between R&D investment intensity and IPO underpricing. Venture capital may be opportunistic. The high shareholding ratio of venture capital, state-owned background and joint shareholding of two or more venture capital can reduce the speculative nature of venture capital through IPO, give full play to the effect of certification supervision, weaken the positive correlation between R&D investment and IPO underpricing, and produce significant negative moderating effect.

References | Related Articles | Metrics

Multi-attribute Group Decision Making Model of the Venture Capital Syndication Based on Three-dimensional Trust Network

Zhao Meng, Pan Ruiying, Xiao Qirui

2021, 33 (6): 98-110.

Abstract ( 192 )

PDF (1312KB) ( 266 )

In the case of information asymmetry, the progress of joint venture investment decision-making presents the characteristics of multi-attribute group decision-making, and in the context of networking and socialization, the trust relationship among institutions will influence the decision-making results. This paper proposes a multi-attribute group decision-making model for joint venture investment based on three-dimensional trust network. Firstly, the two-dimensional trust function is expanded into a three-dimensional form. The trust network is established by determining the trust matrix based on the times of investment and corporation among the investors. Secondly, the probabilistic language set and the trust evaluation are combined to describe the evaluation information of the investors, reflecting the fuzzy characteristics of venture capitalists’ investment decision making. Thirdly, the group consensus is improved by introducing visual interactions, and the independence of individual opinions and group consensus are balanced by using opinion adoption factors. Finally, an example is given to illustrate the practicability of the proposed method and the robustness of the decision results.

References | Related Articles | Metrics

Green Technology Progress, Positive Externality and Environmental Pollution Control of China

Xie Ronghui

2021, 33 (6): 111-121.

Abstract ( 446 )

PDF (1220KB) ( 424 )

The direction of technology progress will impact the environment deeply. Transferring from dirty innovation to green innovation marks the fundamental transformation of an economy’s development from a "gray" model to a "green" one. By distinguishing between the dirty technology and green technology, this paper introduces the green technology into a pollution emission equation and establishes a theoretical model to examine how the green technology and its "double externality" affect pollution emissions. Then we adopt the fix-effect model and the differential GMM method to make an empirical test to the theoretical hypotheses, by employing panel data of 35 sectors of China’s industry during 2002-2014. The results show that, (1) not all the technology progress will reduce pollution emissions. China’s current technology innovation mainly refers to dirty technologies which lead to a significant increase in emissions. (2) Green technology progress is crucial means to reduce pollution. The greener the technology is, the greater the pollution abatement effect will be. (3) For the aggregate sample, environmental regulation has played a moderating role and has effectively corrected the "market failure" caused by the positive externality of green technology, further enhanced the environmental improvement effect of green technology progress. But for the subsample of pollution-intensive sectors, the moderating effect of environmental regulation is not significant. Finally, this paper presents corresponding policy suggestions.

References | Related Articles | Metrics

Research on the Influence of Regulatory Focus on Entrepreneurial Decision-making——Based on Cognitive Perspective

Gu Chen, Zhang Yuli, Cui Lianguang, Deng Shuting

2021, 33 (6): 122-133.

Abstract ( 283 )

PDF (1262KB) ( 278 )

Though regulatory focus theory is an effective tool to analyze individuals’ decision making, the application of this theory has been limited in entrepreneurial research. From the cognitive perspective, this study reveals the specific influence of regulatory focus on entrepreneurial decision-making by a thousand valid samples. The results show that the promotion focus positively affects one’s entrepreneurial decision, while the prevention focus has a negative effect. The individuals’ perception of the institutional environment, risk and opportunity play intermediary roles in the effect of promotion focus on the entrepreneurial decision-making. The research deepens the regulatory focus theory and expands its application in entrepreneurship research. At the same time, the conclusion is helpful for entrepreneurs’ rational cognition, and more importantly, provides theoretical basis for the scientific design and promotion of "double innovation" for our government.

References | Related Articles | Metrics

Research on the Effect of Positive Incidental Emotion on Fellow Customer’s Reaction to Jaycustomer’s Misbehavior

Fei Xianzheng, Han Chao

2021, 33 (6): 134-143.

Abstract ( 248 )

PDF (1246KB) ( 342 )

In the context of customer misbehavior, the fellow customer’s pro-social intervention intention, such as standing out and stopping the misbehavior (hereinafter referred to as intervention intention), is determined by lots of factors. The current research is mainly on the role of positive incidental emotion. By conducting 3 experiments, the authors suggest that: 1) the fellow customers who are in the incidental emotion of pride or gratitude will have higher intervention intention than those who are in the incidental emotion of contentment; 2) positive incidental emotion’s effect will be attenuated if perceived risk is high; 3) the supposed difference between the effect of joy and surprise can’t be supported. The current research extends the application of Evolutionary Psychology and Mood Maintenance Hypothesis in the context of customer misbehavior, and also provides a new proof on the query of Appraisal Tendency Framework’s robustness in positive incidental emotion.

References | Related Articles | Metrics

The Influence of Negative Online Word-of-Mouth on Consumers’ Impulsive Purchasing Intentions: The Mediating Effect of Negative Emotions

Zhang Jiemei, Kong Weizheng

2021, 33 (6): 144-156.

Abstract ( 413 )

PDF (1318KB) ( 656 )

Research suggests that negative online word-of-mouth (negative O-WOM) has positive and negative effects on consumers’ impulsive purchasing intentions. This paper intends to explain the internal mechanism and boundary conditions of negative OWOM, and explore, with psychological experiments, its influence mechanism on consumers’ impulsive purchasing intentions as well as the mediating effects of personal brand connection and impulsive purchasing characteristics. In this paper, a two-path model of negative O-WOM affecting impulsive purchasing intentions is constructed to test the proposed hypotheses through experiments of between-groups variables. The paper finds out that high-intensity negative emotions are positively correlated with impulsive purchasing intentions, while low-intensity negative emotions are negatively correlated with impulsive purchasing intentions, and that impulsive purchasing characteristics merely mediate the impact of high-intensity negative emotions on impulsive purchasing intentions. When consumers with a strong-degree personal brand connection receive negative O-WOM, which conflicts with their original cognition, they will have high-intensity negative emotions and the emotions will be reinforced as negative O-WOM increases. Accordingly, consumers’ impulsive purchasing intentions are aroused owing to the psychology of "being protective of one’s own child (here as brand)". When consumers with weak-degree personal brand connection receive negative O-WOM, they will respond to the existing information. The more the negative O-WOM is, the stronger the low-intensity negative emotions will be, and their impulse purchasing intentions will be inhibited. It is suggested that enterprises achieve effective management of online consumers through enhancement of the relationship between their brands and consumers, different countermeasures to negative O-WOM management based on the degrees of personal brand connection, and effective management of consumers’ negative emotions.

References | Related Articles | Metrics

The Impact of an Institutionalized Environment for Place Branding on Firms Involvement—— The Moderation of Industry Competitive Intensity

Sun Ru, Zhao Weihong, Xie Shengcheng

2021, 33 (6): 157-166.

Abstract ( 159 )

PDF (1274KB) ( 201 )

Due to the public nature of place branding, coupled with the difficulties in obtaining short-term returns, managers are now confronting the challenge of how to drive firms to get involved in place branding in competitive market. Based on institutional theory, this paper develops a conceptual model of firms’ involvement in place branding driven by institutionalized environment under the moderation of industry competitive intensity in order to respond to this challenge. Evidence from 716 samples of 10 industries in 3 place branding areas of our country shows that the institutionalized environment (regulatory, normative, and cognitive) pressure for place branding has positive influence on firms’ involvement. Among them, the cognitive isomorphism pressure has a significant direct impact on firms’ involvement in place branding. The regulatory and normative isomorphism pressures have indirect effects on firms’ involvement through the mediating effect of cognitive isomorphism pressure respectively. In addition, industry competitive intensity has a moderating effect in institutional pressures driving firms getting involved in place branding. With the increase of industry competition, the effects of regulatory isomorphism pressure on normative isomorphism pressure don’t change significantly, but its effects on cognitive isomorphism pressure become weaker; the effects of normative isomorphism pressure on cognitive isomorphism pressure, and cognitive isomorphism pressure on firms’ involvement become stronger. These results provide managerial insights into developing an institutionalized environment driving firms to get involved in place branding according to industry competitive intensity.

References | Related Articles | Metrics

Mitigating the Negative Effect of Social Capital on Marketing Channel Performance: The Moderating Role of Control Mechanism and Absorptive Capacity

Xue Jiaqi, Zhang Zhu

2021, 33 (6): 167-180.

Abstract ( 162 )

PDF (1335KB) ( 193 )

Previous literature of supply chain and marketing channel management show that social capital in the buyer-seller relationship context can promote collaboration and thus increase the performance of both sides. This study extends prior research by considering both the positive and negative effects of social capital in channel relationships. The hypotheses are tested based on 212 Chinese manufacturing firms. Results of the study show an inverted U-shaped relationship between social capital (including relational capital and structure capital) and channel performance. Moreover, the negative effect of relational capital can be mitigated by the control mechanism, such as contract and specific investment, while the negative effect of structure capital can be mitigated by firms’ absorptive capacity. The results provide theoretical implications for manufacturing firms to leverage social capital and thus create value for channel relationship.

References | Related Articles | Metrics

The Effect of Charismatic Leadership on Followership: A Moderated Mediation Model

Jia Jianfeng, Niu Xueyan, Zhao Ruonan, Li Zhigang

2021, 33 (6): 181-191.

Abstract ( 406 )

PDF (1244KB) ( 355 )

With the flat development of organizations and the embodiment of the value of human capital, employees’ followership has increasingly become a key to enhancing enterprise competitiveness and maximizing corporate benefits. As an influential factor, charismatic leadership style plays an important role in inspiring followership. Based on the conservation of resources theory, this research collects a sample of 223 employees’ data by questionnaire at three time points. Hierarchical regression and bootstrap are adopted to reveal the relationship between charismatic leadership and followership, the mediating effect of psychological availability and the moderating effect of perceived human resource management strength, thus building a moderated mediation model. The research shows: Firstly, charismatic leadership has a positive influence on followership. Secondly, psychological availability partially mediates the relationship between charismatic leadership and followership. Thirdly, perceived human resource management strength plays a positive moderating role between charismatic leadership and psychological availability. Fourthly, perceived human resource management strength also moderates the mediating role of psychological availability. The research results not only confirm the mechanism of charismatic leadership on followership, uncover the black box of influencing process and discover the boundary conditions, but also enrich the utilization of conservation of resources theory. At the same time, this research provides practical enlightenment for managers to develop charismatic leadership style in organizational situations to enhance employees’ followership.

References | Related Articles | Metrics

Research of the Chain Mediating Effect of Leader-Leader Exchange on Team Innovation

Chen Chao, Liu Xinmei, Ge Ruibo

2021, 33 (6): 192-200.

Abstract ( 213 )

PDF (1181KB) ( 171 )

Differing from the most previous studies focusing on the influence mechanism of the leadership or leader characteristics on team innovation, this study introduces the construct "leader-leader exchange" (LLX) from an open perspective. Based on social exchange theory, team proactivity and team-member exchange (TMX) are chosen as mediators, and we construct a model about the influence of LLX on team innovation. By analysis of 56 R&D teams using the statistics method, the results are drawn as follows. First, LLX can affect team innovation positively. Second, team proactivity and TMX mediate the relationship between LLX and team innovation. Third, team proactivity and TMX play a chain mediating effect between LLX and team innovation, that is, LLX promotes the level of TMX through the promotion of team proactivity, and then positively influences team innovation.

References | Related Articles | Metrics

The Effect of Inclusive Leadership on Follower Proactive Behavior: The Social Influence Theory Perspective

Xu Yunfei, Xi Meng, Zhao Shuming

2021, 33 (6): 201-212.

Abstract ( 468 )

PDF (1265KB) ( 329 )

As a positive performance indicator, proactive behavior is regarded as a key determinant of competitive advantage and organizational success. However, there is still a lack of discussion on the relationship between inclusive leadership and employee proactive behavior. Based on social influence theory, this study explores the mechanism of inclusive Leadership on employee proactive behavior, further examines the mediating effect of trust in leader and the moderating effect of climate for inclusion. Through hierarchical regression analysis of cross level date collected from 135 enterprises, 237 teams and 1131 employees, we find that inclusive leadership has a positive effect on employee proactive behavior, and trust in leader partially mediates the above relationship; climate for inclusion moderates the relationship between trust in leader and proactive behavior, the higher in climate for inclusion, the stronger the positive relationship between trust in leader and proactive behavior. This study provides a new perspective to understand the relationship between inclusive leadership and employee proactive behavior.

References | Related Articles | Metrics

Learning Ambidexterity and Alliance Success: The Mediating Role of Alliance Management Practice Transfer

Jiang Xu, Yang Wei

2021, 33 (6): 213-223.

Abstract ( 183 )

PDF (1221KB) ( 123 )

Alliance management practices (AMP) are a set of measures, procedures, and techniques used to manage alliances. Based on organizational learning theory, this study explores the impact of partner firms’ learning ambidexterity on their alliancesuccess by introducing the mediating role of AMP transfer. Analyzing the data of 205 partner firms, the study finds that both the balanced and combined dimensions of learning ambidexterity are positively related with alliance success and AMP transfer mediates the relationships. The study advances alliance research by extending learning ambidexterity to the alliance context and demonstrating the critical intermediate role of AMP transfer in transmitting organizational learning into superior alliance performance outcomes.

References | Related Articles | Metrics

Critical Chain Schedule Monitoring Based on Project Resource Segmentation

Zhang Junguang, Li Kai

2021, 33 (6): 224-231.

Abstract ( 146 )

PDF (3233KB) ( 118 )

Classic schedule monitoring methods for critical chain projects focus only on the consumption of time buffers, ignoring the impact of resource consumption on the project schedule. In order to solve the problem of the instability of monitoring effect caused by different buffer sizing methods in the critical chain project management, a new schedule monitoring method based on project resource segmentation is proposed in this paper. First, all the required project resources are divided into three types on the basis of resource characteristics. Second, the warning state values of according resources are determined by the multi-objective fuzzy comprehensive evaluation method to minimize the objective function. Finally, the follow-up resource consumption of the project is predicted by BPNN, so that the issues arising from the project implementation can be handled timely and comprehensively. The experiment results show that the proposed method can reduce the overdue completion rate and the production-capacity-surplus rate by means of effectively predicting the risk status of the project.

References | Related Articles | Metrics

A Study of the Entry Strategy Choices of Enterprises’ Outward Foreign Direct Investment under the Host Country Investment Preference Based on Evolutionary Game Perspective

Habibulla Halpitim, Xie Fuji, Ye Guangyu

2021, 33 (6): 232-241.

Abstract ( 391 )

PDF (1209KB) ( 141 )

By the perspective of host country preference for green-field investment, this research investigates the effect of host country investment preference on the OFDI investors’ entry mode choices based on evolutionary game theory. With an evolutionary game model of capital-intensive enterprises and labor-intensive enterprises’ OFDI entry strategy selection which is built on Hotelling model, the paper analyzes the change mechanism of two types of enterprises’ OFDI mode strategies under the host country investment preference. The research results are as follows: In the process of enterprises’ outward foreign direct investment, compared to overseas mergers & acquisitions, if the host country has a strong investment preference for green-field investment (the newly start-ups), and the policy support provided (subsidies, investment facilitation, etc.) is larger, this market will reach an evolutionary equilibrium (EE) that capital-intensive enterprises and labor-intensive enterprises all enter overseas markets through green-field investment. On the contrary, if the preferential policy support or investment facilitation that foreign investors entered through green-field investment can obtain is smaller, there do not appear a steady state in the market that all kinds of or part of the enterprises all choose one of the two entry strategies of OFDI, the OFDI entry strategy of enterprises and its influencing factors in different periods are varied, the host country investment preference has no significant promotional effect on the green-field new investment of OFDI. In addition, a practical example of outward foreign direct investment is given for the research results and made some relevant discussions in this paper.

References | Related Articles | Metrics

Evolutionary Game Analysis on Value Co-creation of Product Service System

Hu Youlin, Han Qinglan

2021, 33 (6): 242-254.

Abstract ( 238 )

PDF (1358KB) ( 171 )

In order to solve dynamic cooperation and competition strategy selection problem both of manufacturers and users, the PSS cooperation evolution game model is constructed. By considering the whole life cycle of PSS system, this paper makes a 2-phase analysis of the two sides evolutionary stable strategy, namely, the pre delivery phase of the product under non trust conditions and post product delivery phase under mutual trust. The results show that there are multiple local evolutionary equilibrium related to the benefits and costs in the stable strategy of cooperation between two sides. Under non trust conditions, the two sides may have free riding behavior, which, has negative impact on their follow-up cooperation; under trust conditions, income regulation strategy can effectively reduce free riding behavior, but can’t fully explain the endogenous mechanism of value co-creation. Therefore, through an analysis of the model of the micro collaborative efforts of both sides, it is found the regulation at the macro and micro collaborative efforts return together can make value co-creation towards sustainable cooperation. Finally, the model is tested by numerical simulation.

References | Related Articles | Metrics

The Impact of Private Finance on Investment Behavior of Private Enterprises

Liao Guanmin, Jia Jing, Lan Shulin

2021, 33 (6): 255-269.

Abstract ( 256 )

PDF (1262KB) ( 141 )

This paper mainly studies the impact of the development of regional private finance on the investment behavior of private enterprises. Taking the private enterprises in China industrial enterprise database as the sample, we measure the development level of private finance based on the average scale of private loans in the regions where the enterprises operate. The empirical results show that the development of regional private finance can significantly alleviate the underinvestment of private enterprises, and will not lead to overinvestment of private enterprises. The effect is more pronounced in those firms that have higher degree of information asymmetry and more serious agency problems. The effect is also more pronounced when the financial constraint of enterprises is more severe or the regional social capital development is better. Further tests show that, the development of regional informal finance contributes to the future business performance of enterprises. Using the private finance reform policy as an exogenous shock, the DID regression results are consistent. Our findings enrich the literature on the usefulness of financial development from the perspective of private finance and supplement the research on the determinants of private enterprises’ investment behavior. It also provides policy implications to the reform of private finance.

References | Related Articles | Metrics

Market Reform of IPO System: Consensus and Divergence

Song Shunlin

2021, 33 (6): 270-279.

Abstract ( 190 )

PDF (1284KB) ( 131 )

Based on three main lines of IPO reform, this paper discusses the consensus and differences of IPO market-oriented reform from the perspectives of institutional changes and literature review. The main findings are as follows: First, the progressive IPO market-oriented reforms implemented in China in the past have been generally successful.Second, in recent years, the reform of the registration system has been slow; at the same time, the issue of the approval system has become increasingly prominent. Third, the regulators are still indecisive about the market-oriented reform of pricing, but the literature have reached consensus that the disadvantages of pricing control outweigh advantages. Fourth, companies cannot dominate the timing of their own IPO, which leads to the damage of some companies' fundamentals and the escaping of a large number of high-quality companies to overseas markets. Based on these findings, this paper argues that in order to promote the healthy development of the capital market, there is an urgent need to promote IPO market-oriented reforms in a rapid and all-round manner.

References | Related Articles | Metrics

Dividend Policy, Investment Efficiency and Investor Returns

Xi Yuqin, Jin Yonghong, Han Yu, Wei Meng

2021, 33 (6): 280-293.

Abstract ( 290 )

PDF (1266KB) ( 138 )

Cash dividend policy of listed companies, a policy which decides the distribution or retention of profit, plays a crucial role in the management of the company. In this paper, using investment efficiency as a moderating variable, the samples are divided into two groups: overinvestment group and underinvestment group. The cash dividend policies are divided into three groups: skimpy dividend, moderate dividend and excessive dividend. This paper studies the interaction relationship between cash dividend policy and investment efficiency and the impact on investor returns of different combination of cash dividend policy and investment efficiency. For underinvested companies, the study shows excessive dividend and skimpy dividend both have negative effect on investment efficiency and return of investors through loss of investment efficiency. Only by moderate dividend, the underinvestment could be reduced. For overinvested companies, skimpy dividend is harmful for investment efficiency and has negative impact on return of investors through moderating effect of investment efficiency. Excessive dividend will reduce overinvestment and increase return of investors through moderating effect of investment efficiency. The research is a supplement for corporate dividend study and could be helpful for the managers of companies to make dividend policy.

References | Related Articles | Metrics

Dual Sourcing Decisions with Supply Risk and Capacity Constraint

Zeng Nengmin

2021, 33 (6): 294-305.

Abstract ( 238 )

PDF (1285KB) ( 202 )

This study investigates the procurement strategies for a manufacturer who faces two suppliers with supply risks and capacity constraints. The manufacturer firstly takes one supplier as the primary supplier and another as the backup supplier, and then the primary supplier determines its wholesale price. Based on the wholesale price, the manufacturer places regular order to the primary supplier. After the random yield of the primary supplier is realized, the backup supplier determines its wholesale price and a backup order is placed by the manufacturer. The optimal decisions for the manufacturer, primary supplier and backup supplier are obtained, and the results show that the manufacturer either exercises HL strategy (i.e., taking the high-cost supplier as the primary supplier and the low-cost supplier as the backup supplier) when the capacity of the low-cost supplier is much smaller than that of the high-cost supplier, or LH strategy (i.e., taking the low-cost supplier as the primary supplier and the high-cost supplier as the backup supplier) when the opposite is the case. The domination region of HL (LH) strategy enlarges (shrinks) with the increases of both supply risk and backup production cost. Furthermore, there exists a distortion between the strategy selection of the manufacturer and that of the social optimum, and this distortion strengthens with the decrease of backup cost but weakens with the increase of supply risk.

References | Related Articles | Metrics

Concept Measurement and Influence Mechanism of Supplier’s Coercive Strategy: An Empirical Research on Automobile Industry

Ji Xuehong, Yang Yiweng

2021, 33 (6): 306-315.

Abstract ( 109 )

PDF (1294KB) ( 108 )

Taking automobile industry as an example, this paper discusses the main reasons for the channel conflicts between suppliers and dealers, as well as the continued deterioration of their relationships. A theoretical model is developed to integrate the relationships among suppliers’ goal, dealers’ goal, coercive strategy and dealers’ satisfaction. The empirical research results show that the main reason why automobile suppliers implement coercive strategies is that coercive strategies positively affect the realization of suppliers’ sales goals. While coercive strategies have significant negative impacts on both dealers’ economic performances and their satisfaction. Coercive strategy is the major cause of channel conflicts. This paper puts forward an approach to solving channel conflicts, namely, suppliers change their channel strategies from focusing on coercive strategies to focusing on non-coercive strategies, which makes it necessary for suppliers to reduce their pursuits of short-term benefits and maintain the common interests of both suppliers and dealers from long-term perspective.

References | Related Articles | Metrics

Power Structure Modeling for O2O Supply Chain with Showroom under Money-back Guarantees

Gong Zhiyu, Jin Liang

2021, 33 (6): 316-327.

Abstract ( 146 )

PDF (1488KB) ( 104 )

We study an offline to online supply chain that consists of a manufacturer and an online retailer. The online retailer offers a money-back guarantee, which allows customers to return product that do not meet their expectations to the online retailer for a full refund. Three types of models are constructed in this paper, which are the Nash game model and two Stackelberg game models dominated by the manufacturer and respectively. By the solutions, we derive, for each supply chain participant, the optimal profit of system, and the equilibrium pricing, demands, profits under each power structures. On this basis, we investigate the impact of the showroom on the consumer purchasing behaviors and consumer surplus. The results show that, the showroom can increase the demands and decrease product return rates. Moreover, the introduction of showroom can effectively increase the manufacturer’s profit, while the showroom may not increase the profit of the online retailer. Moreover, the different power structures between the manufacturer and the retailer plays no role on the profits of the whole supply chain and consumer surplus.

References | Related Articles | Metrics

Innovation of Business Integration Model under the Background of “Internet +”: A Case Study

Yang Zhihua, Zhang Xi, Hu Yi

2021, 33 (6): 328-339.

Abstract ( 243 )

PDF (1799KB) ( 205 )

Business integration can realize the optimal allocation of resources, thereby improving the efficiency of enterprise operations, enhancing enterprise competitiveness, and promoting faster and better development of enterprises. This paper builds a model that can guide the business integration of China’s supply and marketing system agricultural products wholesale market, and provides suggestions and strategic support for its smooth implementation of business integration. First, the general business integration are analyzed, including horizontal integration model, vertical integration model, cross-border integration model, equity integration model, platform integration model, and hybrid integration model; on this basis, a model suitable for China Supply and Marketing Agricultural Production Wholesale Market Holding Co.Ltd is constructed based on the "Internet +" business integration model, and the specific application of Internet tools in the company ’s business process reorganization is introduced; finally, suggestions for the business integration of China Supply and Marketing Agricultural Production Wholesale Market Holding Co.Ltd are provided.

References | Related Articles | Metrics

Research on the Sustainable Business Model Evolution of Manufacturing Incumbents from the Dual Process Perspective——A Longitudinal Case of Shaanxi Blower Group of 2001-2017

Lu Di, Miao Xiaoming, Shang Tiantian

2021, 33 (6): 340-352.

Abstract ( 205 )

PDF (2095KB) ( 201 )

In recent years, sustainable business models have become an important topic in the field of corporate management research. As the major player in the industry, how incumbent firms achieve sustainable business models has become a core question in the business model innovation research. From the dual process perspective, this paper takes Shaanxi Blower Group as an example to conduct a longitudinal case study and reveals how dual cognitive processes influence incumbents’ building of sustainable business models and how incumbents’ sustainable business models evolve. The study finds that: (1) Analytical processes are suitable for environments with high turbulence or high complexity, while heuristic processes are suitable for environments with low or high turbulence and complexity. (2) Top managers, through the sequential interaction of analytical processes and heuristic processes, enable the focus on incumbents’ sustainable business models to gradually expand from themselves to users, then to market stakeholders, and ultimately to non-market stakeholders. (3) Incumbents’ sustainable business model evolution has undergone four phases of inactive, reactive, strategic and proactive, and gradually evolved from traditional business model innovation, to socially oriented sustainable business model innovation, to technologically oriented sustainable business model innovation, and finally to organizationally oriented sustainable business model innovation.

References | Related Articles | Metrics

Table of Content