Management Review

Do Fiscal Vertical Imbalances Affect Local Fiscal Expenditure Efficiency?——A Concurrent Discussion on the Moderating Effect of Fiscal Transparency

He Wensheng, Guo Leilei, Zhang Guoxing

2023, 35 (11): 3-15.

Abstract ( 164 )

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Adjusting the relationship between central and local financial power and improving the efficiency of local fiscal expenditure are not only important means to alleviate local debt risks and improve local governance methods, but also an important part of the deepening fiscal-system reform for national governance modernization. Starting from clarifying the theoretical logic of how vertical fiscal imbalance affects the efficiency of local fiscal expenditure and how fiscal transparency regulates this relationship, this paper conducts an empirical analysis based on panel data of Chinese provincial governments in the period of 2010-2019. The research shows that the current fiscal vertical imbalance promotes the efficiency of fiscal expenditure to a certain extent, though with regional differences, and fiscal transparency can positively adjust the impact of the degree of fiscal vertical imbalance on the efficiency of fiscal expenditure. Therefore, the efficiency of local fiscal expenditure should be improved by tightening budget management system, strengthening public supervision and information disclosure, and adjusting the incentive mechanism of local officials.

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The Impact of Climate Change on Income Inequality: A Literature Review

Chen Xuan, Gao Xue, Liu Lancui

2023, 35 (11): 16-25.

Abstract ( 131 )

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The impact of climate change on income inequality has become one of the hottest topics in recent years. Bibliometric analysis is employed in this paper to statistically analyze relevant literature from Web of Science, reviewing the research progress of climate change on income inequality. The literature finds that climate change has exacerbated income inequality both across and within countries, driven by heterogeneity in exposure and vulnerability. Future researches could focus on revealing the long-term effects of climate change, conducting more comprehensive studies on the mechanisms underlying its impact on income inequality, and designing effective policies to address both climate change and income inequality issues.

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Financial Development and Foreign Direct Investment Destination Choice: The Moderating Role of Business Group

Chen Xuchang, Lv Ping

2023, 35 (11): 26-35.

Abstract ( 74 )

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The factors that affect the choice of foreign direct investment (FDI) destinations have been an academic focus for decades. This paper analyzes the effect of host country's financial development on FDI destination choice, and the moderating roles of business group and home country's financial development. Based on the sample of FDI projects launched by Chinese listed companies during 2004 to 2017, our empirical results reveal that:(1) host country's financial development has a positive effect on Chinese firm's FDI destination choice; (2) firms affiliated to a business group can get better access to critical resources, and such affiliation negatively moderates the relationship between host country's financial development and FDI destination choice; (3) China's financial development can substitute for the function of business group to some extent. There is a positive three-way interaction effect among host country's financial development, home country's financial development and business group affiliation.

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Study on Competitive Grouping Allocation of China's Provincial Carbon Quota under the Goal of Carbon Peak

Wang Jiefang, Wei Jiali, Guo Qinge, Hu Peifeng

2023, 35 (11): 36-44.

Abstract ( 63 )

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The proposal of "carbon emissions peak" and "carbon neutralization" strategies indicates that China's carbon emission reduction initiative has upgraded from intensity-oriented control to volume-oriented control. Based on the description of the carbon emissions peaking curve and the estimation of the total carbon allowance from 2021 to 2030, a competitive grouping allocation method of carbon allowance under the carbon peak target is proposed. This method follows the practise of the carbon allowance management organization to set flexible standards, which allow each province to compete for carbon quotas in such a manner as to maximize its own interests, and the resultant grouping allocation combines provinces' different preferences for allocation criteria into an organic whole. Compared with the unified standard, the flexible standards are more in line with China's actual situation where the socioeconomic development model and level vary from province to province. This paper makes an empirical analysis on the carbon allowance allocation of 30 provinces and regions in China, which provides a reference for the quantitative management, the decomposition of provincial responsibilities and the "common but differentiated" zoning management and control of the China's carbon peak goal.

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Effect of Real Estate Enterprises Status on Their Cross-regional Investment Behavior

Liu Guangping, Sun Wei

2023, 35 (11): 45-61.

Abstract ( 335 )

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This paper introduces the ‘enterprise status’ concept of social economics into the real estate market to measure the individual differences among real estate enterprises, and studies the impact of enterprises' status on the extent and pattern of their cross-regional investment. The results show that the status of real estate enterprises significantly affects their cross-regional investment behavior. The higher status a real estate enterprise has, to a larger extent it would make cross-regional investments and the more inclined it is to join hands with others to make such investments. In addition, the increase of economic policy uncertainty will strengthen the positive relationship between the status of real estate enterprises and the degree of their cross-regional investment, while weakening the positive relationship between their status and their cross-regional co-investment, as well as the negative relationship between their status and their independent cross-regional investment. The effect of real estate enterprises' status on their cross-regional investment behavior is effective only under the following conditions:the real estate enterprises are private-owned and the investment market operates under a sound regulatory system. If both the nature of the real estate enterprises ownership and the regulatory system of investment destination are considered, it can be found that when only private real estate enterprises choose to carry out cross-regional investment in the region with a sound regulatory system, the high status of enterprises will positively affect the extent of cross-regional investment, and they are more inclined to choose a cross-regional co-investment model. If the real estate enterprises are state-owned or the regulatory system of investment destination is not sound enough, the influence of enterprises' status on the extent and pattern of their cross-regional investment is not significant.

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How do Heterogeneous R&D Investments Affect Regional Economic Growth——Condition, Spatial Effect and Mechanism Analysis

Cao Yuequn, Zhao Shikuan, Zhang Han

2023, 35 (11): 62-74,101.

Abstract ( 59 )

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In the context of innovation-driven development strategy, it is of great significance to clarify the characteristics of heterogeneous R&D investment and its different effects on regional economic growth. This paper uses the comprehensive perpetual inventory method to calculate the provincial heterogeneous R&D capital stock from 1998 to 2020, and empirically analyzes the conditions, spatial effects and mechanisms of scientific research and technology development affecting regional economic growth. The results show that:(1) scientific research and technological development have the characteristics of "step-up" threshold effect in the process of promoting regional economic growth, and the threshold condition is related to the regional digestion and absorption capacity; (2) technology development has a significant positive spatial spillover effect, but the spatial spillover effect of scientific research is not significant; and (3) both scientific research and technological development can promote regional economic growth through the effect of human capital and efficiency improvement. Compared with technological development, scientific research makes it more difficult to promote economic growth through the effect of consumer demand. From the perspective of heterogeneous R&D investment, this paper provides policy recommendation for promoting the coordinated development of regional innovation, improving the contribution rate of scientific and technological progress, and implementing the innovation-driven development strategy.

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Managerial Alumni Network, Formal Institutional Environment and Corporate Cooperative Innovation——From the Interactive Perspective of Relationship Governance and Contract Governance

Xie Guanghua

2023, 35 (11): 75-89.

Abstract ( 93 )

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In order to prompt the construction of an innovative country, many scholars have paid attention to the issue of how to promote cooperative innovation and further improve innovation quality. From the perspective of informal institutions, we investigate the influence of managerial alumni network on cooperative innovation willingness. The results show that managerial alumni network significantly improves corporate cooperative innovation. Moreover, managerial alumni network mainly promotes the joint patent application of different provinces. We also find that the positive effect is mainly in the areas with low social trust. Managerial alumni network can promote corporate cooperative innovation by alleviating information asymmetry and enhancing mutual trust. Further analysis shows that formal institutions, including intellectual property protection, legalization, and marketization are complementary to managerial alumni networks in the process of promoting corporate cooperative innovation. Our research also has several contributions. Firstly, this study enriches the understanding of how the informal institution governance of managerial alumni networks affects corporate cooperative innovation. Secondly, the result helps to clarify the influence of the interaction between formal institutional governance and informal institutional governance of managerial alumni networks on corporate cooperative innovation behavior. Thirdly, it can provide some rationales for the government to strengthen the construction of social integrity, enrich the information channels of cooperative innovation, and improve the level of legalization and marketization to establish a good institutional environment for corporate cooperative innovation.

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Green Technology Innovation, Intelligent Transformation and Manufacturing Companies' Environmental Performance: Empirical Research Based on Threshold Effect

Li Wanhong, Li Na

2023, 35 (11): 90-101.

Abstract ( 123 )

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Green technology innovation and intelligent transformation play an important role in breaking resource and environmental constraints and realizing economic and social development. This paper selects data from manufacturing companies A-share listed in the Stock Exchange of Shanghai and Shenzhen from 2011 to 2019 as samples, constructs a two-way fixed effect model to analyze the impact of green technology innovation on the environmental performance of manufacturing companies, and adopts panel threshold model to explore the mechanism of how green technology innovation influences the environmental performance of manufacturing companies, which are at different stage of intelligent transformation. The empirical findings show that:(1) green technology innovation promotes the environmental performance of manufacturing companies; (2) there is a "threshold effect" brought by intelligent transformation. Intelligent transformation positively regulates the effect of green technology innovation on the environmental performance of manufacturing enterprises, and its regulating effect is increasing marginally; (3) when considering heterogeneity, the impact of green technology innovation on environmental performance and the threshold effect of intelligent transformation of manufacturing companies in the eastern region are stronger than those in the central and western regions. Additionally, the impact of green technology innovation of state-owned enterprises on the environmental performance of manufacturing enterprises and the threshold effect of intelligent transformation are weaker than those of non-state-owned enterprises. These findings are conducive to providing theoretical reference for promoting green technology innovation, intelligent transformation of Chinese manufacturing enterprises and improving the environmental performance.

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The Optimal Boundary of R&D Subsidies for Promoting R&D Cooperation Involving External Investors

Li Junqiang, Ren Hao, Wang Mingyue

2023, 35 (11): 102-112,125.

Abstract ( 48 )

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In the process of implementing the innovation-driven strategy, it is crucial to improve the effectiveness of R&D subsidies of local governments. Based on the dual "certification effect" of R&D subsidies on firms, this paper proposes a model of stochastic evolutionary game among three participants:local governments, R&D firms and investors. By solving the model, we derive the effective boundary conditions of R&D subsidies during the stable evolution of the participants' strategies. Drawing upon the data of 601 ChiNext listed companies in 12 regions in 2019 with Beijing as the benchmark area for R&D subsidy policies, this paper compares the effectiveness of R&D subsidies in other regions. The results show that:the R&D subsidies issued by the local governments do not play a decisive role in the choice of R&D and investment strategies by enterprises and investors, but will significantly affect the convergence speed and stability of their strategy selection probabilities. Benchmarked against Beijing, other regions show an effective boundary for R&D subsidies, and the effectiveness varies directionally from region to region. To be specific, R&D subsidies are insufficient in regions like Anhui and Sichuan, at the same level as Beijing in regions like Guangdong, and redundant in regions like Hubei, Shandong and Henan.

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The Influence of Firms' Direct Expression of Gratitude on Contributors' Continuous Contribution Behaviors in Idea-crowdsourcing Communities

Ma Yongbin, Zhou Bo

2023, 35 (11): 113-125.

Abstract ( 64 )

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The existing researches have pointed out the importance of firms' feedback for motivating contributors to contribute ideas continuously in firm-sponsored, non-financially incentivized, idea-crowdsourcing communities, but none of them have focused on the impact of firms' direct expression of gratitude. Based on the motivation and incentive theory, using the second-hand data of a creative crowdsourcing community in China and applying the PWP-GT (the Prentice, William, Peterson Gap Time) model, this paper analyzes the impact of firms' direct expression of gratitude on contributors' continuous creative contributions, and the moderating effect of firms' feedback valence, the number of reviewers' positive comments and contributors' points. The results show that firms' direct expression of gratitude will motivate contributors to continue contributing ideas. When an idea receives negative feedback (versus positive feedback) from firms and more positive comments (versus less positive comments) from reviewers, the incentive effect of gratitude directly expressed by firms will be enhanced. When contributors have more points (versus less points), the incentive effect of gratitude directly expressed by firms will be weakened. This paper expands the application scenario of expressing gratitude, explores the boundary conditions of gratitude incentives, deepens the research on multi-source incentives in the online environment, and has reference value for understanding the existing gratitude strategies of firms in idea-crowdsourcing communities.

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Mixed Ownership Enterprises with Multiple Heterogeneous Large Shareholders and Innovation——Intermediary Test Based on Financing Constraints and Risk Taking

Gao Lei, Zhao Yudi

2023, 35 (11): 126-141.

Abstract ( 65 )

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Innovation is a high-risk investment activity. Risk taking and financing constraints are the key to enterprise innovation activities. Mixed ownership enterprises with multiple heterogeneous large shareholders are better able to take risks, ease financing constraints and promote high-quality innovation. The research finds that the innovation ability of mixed ownership enterprises with multiple heterogeneous large shareholders is significantly stronger than that of other enterprises. Further research shows that risk taking and financing constraints are intermediary variables that affect high-quality innovation of mixed ownership enterprises with multiple heterogeneous large shareholders. To be specific, the checks and balances and diversity of the heterogeneous large shareholders affect the enterprise's risk taking, thereby improving the enterprise's innovation ability. The diversity of the heterogeneous large shareholders alleviates the enterprise's financing constraints, thereby improving the enterprise's innovation ability. Moreover, the two intermediaries are more significant in high-quality innovation. The conclusion of this study shows that the coexistence of multiple heterogeneous large shareholders in a mixed ownership enterprise is conducive to the improvement of the enterprise's innovation capability, and this conclusion has important implications for the mixed ownership reform of state-owned enterprises and high-quality economic development.

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A Picture may Not Tell the Truth! The Influence of Online Review Picture Beautification on Review Adoption Intention in Online Consumption Context

Zhang Yannan, Tang Yao, Zhu Yanghao, Tu Ming

2023, 35 (11): 142-152.

Abstract ( 96 )

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There are two main forms of online reviews, verbal reviews and pictorial reviews. Most of the current researches on online reviews have focused on verbal reviews, with limited attention on pictorial reviews. Even the limited researches on pictorial reviews only discuss the contrast effect of pictorial and verbal reviews, number of pictures and type of pictures, while ignoring photo beautification, an increasingly common phenomenon in online review. In this paper, we integrate the S-O-R theory and the heuristic and analytical dual-system model, and design three experiments to explore the mechanism of how picture beautification influences review adoption intention and its boundary conditions. The results show that the direct effect of online review picture beautification on review adoption intention is significant, and the indirect effects through the single mediation of perceived authenticity and the chain mediation of perceived authenticity and perceived diagnosability are significant. In addition, product type (search VS experience) moderates the negative effect of online review picture beautification on perceived authenticity and thus moderates the chain mediation effect. The research results not only enrich the research content of online reviews, expand the research scope of pictorial reviews, and put forward the authenticity-diagnosability-adoption model, but also have important practical enlightenment on how to guide consumers to make picture reviews.

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Public Concerns and Attitudes towards “Fake House Ads”: A Text Mining Study Based on Microblog Comments

Liu Guihai, Cui Fulong, Lu Caihan, Zeng Wenhai

2023, 35 (11): 153-165.

Abstract ( 67 )

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An in-depth analysis of fake house microblog commentary based on text mining technology, a text feature analysis by means of text feature extraction, word frequency analysis and feature association analysis, and an analysis of sentiment tendency, may help provide an insight into the deeper meaning of the commentary, the real concerns and sentimental attitude of the public, and the formation mechanism underlying the concerns and attitude. Such an insight enables the public to optimize their behavior strategies, intermediary enterprises to improve their services and authorities to change their supervision mode. The study shows that:(1) public sentiment towards fake house ads and the overall housing market is predominantly negative, as evidenced by 72.1% of the public holding a negative attitude and 69.3% holding a highly negative attitude; (2) there is a misalignment in the focus of public attention on the four levels of housing quality, service level, individual perception and supervision; (3) the core factors for whether the public sentiment is positive or negative lie in the quality of available houses and the level of intermediary service. The intensity of regulation plays a smaller role in generating positive sentiment than in generating negative sentiment; and (4) the choice of the business model of intermediary enterprises affects the degree of importance they attach to fake house ads, which indirectly affects the change in public sentiment. The above findings have implications for revealing the nature of fake house ads, digging deeper into the public's real inner needs and promoting the benign development of the real estate market.

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Service Agents or E-robots?——A Study on the Online Customer Service Strategy Selection for the E-retailer in the AI Era

Zhang Peng, Ma Jun, Dong Shaozeng, Sun Kai

2023, 35 (11): 166-178.

Abstract ( 127 )

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Artificial intelligence has been applied to online customer service systems by e-retailers and is receiving increasing attention. This paper studies the strategic choice of online customer service mode for the e-retailer by exploring whether the introduction of intelligent technology in online customer service system brings more benefits to the e-retailer regarding consumers' heterogeneous shopping intention. Four different decision-making scenarios are discussed:no online customer service, with online service agent, with artificial intelligent online customer service, and with hybrid online customer service; decision models are constructed for each scenario, and the optimal product price, optimal product demand, and optimal product profit are obtained for each scenario; then the conditions for introducing intelligent technology in online customer service are analyzed. Some interesting results are obtained. (1) The improvement of online customer service quality does not affect product pricing, but can increase product demand and contribute to the profit growth of the e-retailer. (2) The higher learning capacity of e-robots contributes to the profit increase under AI online customer service. However, under the hybrid online customer service mode, whether profit growth can be achieved by improving the learning ability of e-robots depends not only on the e-robots' learning capacity but also on the service quality of customer service agents. (3) When the wage contribution rate of customer service agents is low, or when both the current wage rate of service agents and the learning capacity of e-robots are high, the e-retailer should switch from online service agent to artificial intelligent online customer service. (4) The e-retailer should switch from online service agent to hybrid online customer service when both the service quality of customer service agents and the learning capacity of e-robots are high.

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Literature Review on Multilateral E-commerce Platforms: Theoretical Evolution, Regulatory Focus, and China's Issue

Duan Litao, Lu Chaonan, Li Sirui, Peng Geng, Lv Benfu

2023, 35 (11): 179-193.

Abstract ( 67 )

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Multilateral e-commerce platforms have penetrated into all walks of life, but there are relatively few theoretical studies on multilateral e-commerce platforms. We first review the development of platform theory. Platform theory originated from the study of two-sided market, and then with the development of Internet technology, the research focus gradually shifted to multilateral e-commerce platform. At present, the research on multilateral e-commerce platforms still lacks a systematic theoretical framework, and mainly focuses on explaining the new phenomena and problems accompanying multilateral e-commerce platforms. On the basis of summarizing the literature, this paper summarizes the focus of research on the regulation of multilateral e-commerce platforms according to some realistic performances:price discrimination, algorithm collusion and platform monopoly, and puts forward two main problems faced by China's multilateral e-commerce platforms. Finally, this paper summarizes the research status of platforms at home and abroad, and puts forward three issues for future research on multilateral e-commerce platforms:the definition of platform boundary, the governance of platform economy and the anti-unfair competition regulation.

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Content Is King: The Impacts of Informativeness on Consumer Online Engagement Behavior

Lyu Ming, Jiang Feifei, Gu Feng, Jiang Ning

2023, 35 (11): 194-205.

Abstract ( 99 )

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Consumer online engagement behavior (COEB) is critical to effective social marketing. To reevaluate a number of factors that influence COEB, such as informativeness and positivity, based on the Elaboration Likelihood Model and Impression Management, this study adopts a newly designed natural language processing algorithm-an unsupervised domain adaptation system for content informativeness prediction-and builds a unified theoretical framework using data from Sina Weibo's beauty microblogging community. This differs from the existing literature, which focuses on minor features of online content. The results show that:(1) content informativeness has a non-linear positive impact on COEB; (2) content positivity has a positive impact on COEB and positively moderates the relationship between informativeness and COEB; and (3) informativeness and positivity have differentiated impacts on COEB. This study not only improves the theoretical understanding of COEB but also offers practical guidance for firms on how to effectively communicate with consumers on social platforms.

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How does Outgroup Threat Affect Brand Switching Intention? The Mediating Role of We-ness and the Boundary Test of Brand Ethnicity

Wang Xingang, Wang Lulu, Gong Yu, Zhou Nan

2023, 35 (11): 206-216,241.

Abstract ( 44 )

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Crisis response in the process of local brands' internationalization has gradually become an important issue attracting more and more attention. However, the existing researches focus on the "risks" caused by external causes (natural disasters, malicious competition and false media reports), with little attention paid to the "opportunities" caused by outgroup threat (foreign governments' sanctions against local brands). To fill this gap, we use a mixed research method (grounded theory, secondary data, experiment design and questionnaire) and find that when local brands confront high (vs. low) outgroup threat, native consumers show a higher intention of switch from foreign brands to domestic brands, and we-ness plays a significant mediating role. However, this effect only holds for high ethnicity brands. For low ethnicity brands, high (vs. low) outgroup threat has no significant difference in the effect of native consumers' intention of brand switch. This paper introduces outgroup threat as an external cause of brand crisis for the first time, and provides a new interpretation perspective from the macro association "we-ness" between native consumers and local brands. Besides, we also define the component dimensions of brand ethnicity in the Chinese context and test its boundary function. Our conclusions provide new interpretation and guidance for enterprises on how to respond to outgroup threat and promote native consumers' brand switching intention.

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The Influence of Resource Endowment of Catering Industry on the Restaurant Customer's Fusion Behaviors of Multi-loyalty and New-restaurant-seeking: The Mediation of Awareness and Satiety

Zhang Yi, Wu Shanshan, Liu Jinping, Zhang Rui

2023, 35 (11): 217-229.

Abstract ( 114 )

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In the catering industry, the vast majority of customers have the long-term consumption behavior of intermittent repeated consumption in multi-loyal restaurants and continuous new-restaurant-seeking. This study introduces awareness and satiety as mediating variables to explore the influencing factors and psychological mechanisms of the fusion behavior. The results show that the resource endowment of catering industry, as evidenced by wide variety, great attractiveness of substitutes, low conversion cost and so on, can significantly raise catering customers' awareness of the repeated consumption times in the same or similar stores. Such awareness will soon make them feel sated and willing to adopt fusion behaviors (including switch among loyal stores and seeking new stores). At the same time, such awareness and fusion behaviors are significantly and positively affected by exploration tendency and consumption frequency. From the perspective of multi-loyalty store switching and new store seeking, this study establishes a new dimension of variety seeking, verifies the mediating effect of awareness and satiety between resource endowment and the fusion behaviors, establishes the internal relationship between multi-loyalty and variety seeking, and reveals the psychologic root of customers' fusion behaviors.

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Exploitative Leadership and Negative Gossip Behavior about Supervisor: The Perspective of Cognitive Appraisal Theory of Emotion

Liu Mingwei, Zhang Pengcheng, Pan Xiaoqing, Liu Zhiqiang, Ji Xiaotong

2023, 35 (11): 230-241.

Abstract ( 141 )

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Exploitative leadership exists widely in organizations and can profoundly affect employees' emotional state and work behaviors. Despite the detrimental effect of exploitative leadership on employees' behavior about work have been proved, we still know little about how employees may react toward their exploitative leader. Such reaction is of great significance as it may affect the leader's future behavior. Therefore, based on the cognitive appraisal theory of emotion, the current study explores the effect of exploitative leadership on employees' negative gossip behavior about supervisor, and further examines the mediating role of workplace anxiety and the moderating role of moral identity. A multi-stage questionnaire survey is conducted to collect 438 pieces of valid questionnaire data in three stages on the professional data platform Credamo. The results show that:exploitative leadership has a significant positive impact on employees' workplace anxiety and ultimately leads to employees' negative gossip behavior about supervisor. The indirect effect of exploitative leadership on employees' negative gossip behavior about supervisor, via workplace anxiety, is moderated by employees' moral identity such that the indirect effect is positive and significant when employees' moral identity is low, but not significant when employees' moral identity is high. The current study expands the theoretical perspective and outcomes of exploitative leadership research, enriches the research on antecedent variables of negative gossip behavior in the workplace.

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Ethical Leadership and Courageous Followership Behavior: A Perspective of Social Identity Theory of Leadership

Li You, Yu Guangtao, Sun Junping

2023, 35 (11): 242-252.

Abstract ( 102 )

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Drawing on the social identity theory of leadership, this paper puts leadership and followership into a research framework and explores the influence of ethical leadership on subordinates' courageous followership and the mechanism underlying the influence. Based on the two-stage longitudinal data of 256 samples, the results reveal that ethical leadership is significantly positively related to subordinates' courageous followership. subordinates' supervisor identification mediates the positive relationship between ethical leadership and courageous followership. subordinates' moral ownership also strengthens the relationship between supervisor identity and courageous followership behavior, such that the positive relationship between subordinates' supervisor identification and courageous following behavior is enhanced when moral ownership levels are high. At the same time, subordinates' organization-based self-esteem strengthens the relationship between supervisor identification and courageous followership behavior, such that the higher the level of organization-based self-esteem, the stronger the positive relation between supervisor identification and courageous followership behavior.

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Controlling Person's Foreign Residency and Corporate Strategic Choice

Meng Qingbin, Li Haitong, Che Meijie, Li Xinyu

2023, 35 (11): 253-271.

Abstract ( 40 )

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In the current Chinese capital market, it is common for the controlling persons of private enterprises to have foreign residency. Using Chinese private listed firms from 2008 to 2019 as samples, this paper explores the relationship between controlling person's foreign residency and corporate strategic choice. It is found that controlling person's foreign residency significantly increases the firm's strategic aggressiveness, and this finding verifies the "speculative effect" hypothesis regarding controlling person's foreign residency. This result is still valid after controlling endogeneity and carrying out a series of robustness tests. Besides, China's efforts in tracking down overseas fugitives and the bilateral extradition treaties signed between China and other countries significantly reduce the impact of foreign residency on corporate strategy. Further research results show that when the controlling person indirectly controls the firm or holds a large control right, the impact of foreign residency on corporate strategic aggressiveness is more pronounced. Also, when the shareholding ratio of management or the proportion of independent directors is relatively low, foreign residency often leads to more aggressive corporate strategies. In addition, strict audit supervision and high accounting conservatism reduce the impact of foreign residency on corporate strategic aggressiveness. This research provides references for managers, investors and regulators to understand and ease the impact of foreign residencyon firms, and provides enlightenment for relevant departments to track down fugitives and carry out extradition cooperation.

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An Exploratory Study on Tao of Ren & Yi, Relational Interaction and Chinese Enterprises' Strategization

Pan Ancheng, Chang Yufan, Cao Zhanfei

2023, 35 (11): 272-283.

Abstract ( 46 )

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Over the past 40 years of reform and opening-up, Chinese enterprises have been growing up by "wading across the river by feeling for the stones", a practice typical of the Chinese culture, and have gradually formed a unique management mode of Chinese style. In the Chinese cultural settings, Tao of Ren & Yi functions as a standard of behavoir, which can improve interpersonal relationships by increasing everyday interaction among members and solve daily problems in the process of relational maintenance, so it can be used by enterprises for strategization purpose. A comparison of Chinese enterprise cases shows that daily organizational behaviors in compliance with Tao of Ren & Yi can maintain and enhance enterprises' identity as members in a corporate community. Meanwhile, the relational interaction behaviors of organizational members are conducive to the formation of long-term resource capabilities and competitive advantage in the process of enterprises' development, and promote enterprises' strategization in effectively resolving organizational problems. In addition, once interpersonal relationship is damaged, there will be personal behaviors detrimental to organizational orderly advancement, making organizational problems deadlocked and enterprises on the decline. The findings show that in the practise of Chinese enterprises where acquaintance plays a key role, relational communication behaviors in compliance with Tao of Ren & Yi are conducive to Chinese enterprises' strategization.

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Large Shareholder Heterogeneity, Equity Pledges and Corporate M&A Decisions: An Analysis Based on Equity Pledge Motivation

Zhang Huayu, Yu Nutao, Zhao Qianfang, Na Chaohong

2023, 35 (11): 284-304.

Abstract ( 51 )

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This paper selects A-share listed companies in Shanghai and Shenzhen from 2008 to 2019 as samples to analyze the influence of major shareholders' equity pledge on corporate M&A decisions based on the pledge motivation. The results show that equity pledge, if supported by large shareholders, will significantly inhibit the probability and frequency of M&As, and if not supported, will do the opposite. Mechanism test shows that equity pledge, if supported, will significantly inhibit agency problems and reduce tunneling behavior, and if not supported, will do the opposite. We further find that a structure composed of multiple large shareholders can effectively play a governing role, mainly through active voice rather than exit threat. Heterogeneity analysis shows that:(1) compared with equity pledge supported by controlling shareholders, equity pledge supported by non-controlling shareholders has a stronger inhibitory effect on M&A decision-making, but equity pledge not supported by controlling shareholders has a significantly stronger promoting effect on M&A decision-making; (2) equity pledge supported unilaterally has a more significant effect in promoting M&A decision-making, while equity pledge supported by neither controlling shareholders nor non-controlling shareholders has a stronger effect in inhibiting M&A; (3) compared with additional pledge, major shareholders' first pledge on their own initiative has a more significant impact on M&A decisions; and (4) compared with state-owned enterprises, equity pledge of major shareholders has a more significant effect on M&A decision-making in non-state-owned enterprises. From the perspective of equity pledge motivation and multiple major shareholders' governance, this paper enriches the research on equity pledge and M&A decision-making, and provides reference for how to prevent the risk of pledge from the perspective of motivation.

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Can a Highly Reputable Subsidiary Resist Its Parent Company' Expropriation?——From the Perspective of Resource Dependence Theory

Zhang Yang, Xu Xiangyi

2023, 35 (11): 305-320.

Abstract ( 48 )

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Based on the perspective of resource dependence theory, using the samples of A-share listed subsidiaries from 2011 to 2021, this paper focuses on the relationship between subsidiary reputation and parent company' expropriation, and the moderating effect of subsidiary director horizontal interlocks. It is found that subsidiary reputation has a significant inhibitory effect on parent company' expropriation. The two dimensions of subsidiary reputation:generalized favorability and being known, both have negative effects on parent company' expropriation, but the governance effect of generalized favorability is significantly stronger than that of being known. The subsidiary director horizontal interlocks strengthen the negative correlation between subsidiary reputation and parent company' expropriation. In an extended research, this paper explores the mechanism of how subsidiary reputation affects parent company' expropriation, and finds that subsidiary reputation inhibits parent company' expropriation by improving shareholder value and analysts' attention. Grouping the ultimate ownership attributes and industry characteristics of subsidiaries, this paper tests the governance effects of subsidiary reputation, and finds that there is no significant difference between the state-owned enterprises and non-state-owned enterprises. Compared with the samples of non-high-tech industries, high-tech subsidiary reputation plays a more significant role in inhabiting parent company' expropriation. This research enriches the research of firm reputation in the field of corporate governance, expands the application of resource dependence theory in the context of parent-subsidiary companies, and provides empirical evidence and theoretical reference for alleviating the effect of parent company' expropriation and protecting the interests of minority shareholders.

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Internet Company Employees' Strategies to Dissatisfaction at Work——Exploring the Role of Boundaryless Career Orientation

Zheng Xiaojing, Chang Kai

2023, 35 (11): 321-335.

Abstract ( 62 )

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With employee dissatisfaction becoming increasingly prevalent in Chinese internet companies due to employment relation issues like extensive work effort, illegal dismissal etc., there is an increasing need for an empirical study that examine how employees cope with dissatisfaction at work. To address this need, we use qualitative data from six Chinese internet companies to present an integrative framework explaining how neoliberalism and internet industry characteristics combine to give rise to intensive boundaryless career orientation among internet company employees, which in turn drive a range of behavioral actions-passive compliance, exit, dissent expression and resistance. We build on this foundation to offer propositions on how boundaryless career orientation leads to employees' strategies:vast majority employees tend to remain in the current unsatisfactory job with underlying commitment to on-the-job learning and enhanced employability, then some of them choose to exit when acceptable alternatives arise. Employees are less likely to express dissent or resist due to the risk of employer retaliation and threat to their boundaryless career development. However, the possibility of employee resistance would increase once the workplace violation has substantially damaged employees' interests of boundaryless career development or when they perceive resistance wouldn't bring much harm to their boundaryless career development. We contribute by providing a theoretical framework that offers new boundaryless career orientation explanations for how internet company employees experience and cope with dissatisfaction at work, and we also highlight its theoretical value and practical implications in improving employment relations in internet companies.

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Enterprises' Repositioning and Core Competence Developing and Discarding during Their Digital Transformation——A Multi-case Study

Pi Shenglei, Wang Jing

2023, 35 (11): 336-352.

Abstract ( 81 )

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With the rapid development of the digital economy, more and more enterprises have begun to carry out digital transformation. However, most traditional enterprises are facing many difficulties in the process of transformation. Therefore, in order to find out how enterprises can effectively repositioning themselves and promote the improvement of their core competence in the digital transformation, this study takes four representative enterprises as the research objects to conduct a multi-case qualitative research based on grounded theory. It is found that in the digital transformation, the effective repositioning of enterprises is based on how to best leverage the resource advantages of their original positioning and establish new business scopes that are most advantageous, transferring or expanding their positioning in both the industrial chain and segmented markets. In line with this, the core competencies of enterprises also exhibit the pattern of "developing and discarding", as enterprises develop their core competence in such a manner as to integrate, absorb, digest and integrate new advantageous resource capabilities on the one hand, and weaken or even give up some of the constituent elements of the original core competence on the other. Furthermore, it is found that the digital capabilities formed by the absorption and integration of digital technology or resources by enterprises promote the effective and smooth "developing and discarding" evolution of core competencies through four ways:adding new value links, strengthening original advantage capabilities, promoting resource integration, and improving knowledge sharing, thereby helping enterprises quickly establish new advantages in digital transformation. This study reveals how enterprieses' core competence gets upgraded through developing and discarding, improves the theories of repositioning and core competence transformation, and provides a new perspective for the theory of resource orchestration.

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