How have US banks adopted the Financial Accounting Standards Board's Level 3 fair value disclosure rules?

We examine how banks have complied with the Financial Accounting Standards Board's disclosure rules on Level 3 recurring fair value measurements. We document widespread noncompliance with the basic disclosure requirements. We also find that the noncompliant banks are smaller in size and are associated with lower audit quality, lower institutional ownership and less effective internal controls. Our results should be of use to regulators, auditors and audit committees in the United States, Australia and other countries for assessing the likelihood of noncompliance with fair value disclosure rules and improving the quality of fair value disclosures provided to investors.     

“强监督”还是“搭便车”：自然人大股东如何影响企业专利质量

通过构建改进的知识宽度法测算企业专利质量，并以2007—2016年中国沪深A股上市公司为样本，分析自然人大股东对企业专利质量的影响以及在不同类型企业中其作用的差异性。结果表明，作为“强力监督者”，自然人大股东能够促进企业专利质量提高。但因为其角色由“强监督”转变为“搭便车”，故这种促进作用在国有企业和具有政治关联的企业中并不存在。进一步研究表明，促进作用是通过加强对经理人和研发人员的监督，减少其控制权下投机性创新策略，提升其工作努力程度实现的。研究结论为促进国有企业与民营企业创新能力提升提供相应的政策启示。     

人力资源柔性研究现状及其在中国商业银行实践新思考

通过理论基础、维度与测量、影响因素、组织绩效影响等4个方面对人力资源柔性研究现状做文献研究述评,并基于此提出研究与实践新方向,提出本土国情下中国商业银行人力资源柔性、创新能力以及创新实践的测量体系,探讨人力资源柔性与创新能力以及创新实践之间的影响关系,充分考虑外部环境对上述关系的影响,提出中国商业银行业务创新实践的概念模型。该模型有助于拓展人力资源柔性理论的实证研究,并基于研究成果深入剖析适合中国商业银行发展的人力资源柔性管理模式。     

Natural disasters and economic growth: The role of banking market structure

Following a natural disaster, the rate of economic growth recovers faster in less competitive banking markets. A 10% reduction in competition increases the rate of economic growth by 0.3%. In less competitive markets, banks respond to a disaster by increasing the supply of real estate credit by refinancing mortgage loans, but do not lend more to businesses or consumers. Instead, government agencies provide disaster loans to affected businesses and households. Smaller, profitable and well-capitalized institutions that rely more on traditional retail banking originate most mortgage credit.     

国有股权参股对家族企业创新效率影响机制与路径研究

在混合所有制改革和创新驱动发展战略实施背景下，国有资本“举牌”民营企业对企业创新体系的作用机制亟待研究。基于2008-2018年上市家族企业数据，从创新投入和创新产出两个视角探讨国有股权参股对家族企业创新效率的影响，根据股东资源理论分析可能的影响路径。通过Heckman两阶段模型实证发现：国有股权参股显著促进家族企业创新投入和创新产出，并最终对创新效率产生积极影响，而获取政府补贴和提升创新管理能力是两条中介路径。该结论揭示了混合所有制改革在激发民营企业创新活力中所发挥的重要作用和影响机制，为家族企业提高创新效率提供了新方向。     

Political interventions in state-owned enterprises: The corporate governance failures of a European airline

This paper is based on the theory of hybrid organizations and we investigate the context, factors, mediators, and outcome of a public scandal involving a Romanian state-owned company in the civil aviation sector. This retrospective case study is part of a research design that alternates between inductive and deductive procedures devised to test relevant hypotheses, integrate several theories, and construct the causal mechanism of the corporate scandal. Four theories have been selected to address multiple aspects of the case: the hybrid organization theory, the agency theory, the fraud triangle theory, and the legitimacy theory. Several hypotheses have been proposed at the confluence of these frameworks, and the data collection process was conducted to ensure the credibility, dependability, and transferability of results. In addition to the themes and categories that have emerged from the thematic analysis, the paper also uses the process-tracing method to propose a causal graph and an event-history map in support of the hypotheses. The paper puts forward a series of recommendations on how to improve the corporate governance of state-owned enterprises, and to prevent potential scandals. The authors suggest that the separation of ownership and control is beneficial for strategy implementation in state-owned enterprises and can alleviate an entity’s financial difficulties.     

Board faultlines and the value of cash holdings: Evidence from Chinese listed companies

Faultlines can affect a board of director’s effectiveness in supervising senior managers, which in turn affects the value of a company’s cash holdings. Based on sample data from Chinese A-share listed companies from 2004 to 2016, we examine the relationship between board faultlines and the value of cash holdings. The empirical results indicate that board faultlines have a significant inhibitory effect on cash holding value. This inhibitory effect is stronger for board faultlines resulting from deep-level attributes. Furthermore, the inhibitory effect of board faultlines is stronger in state-owned enterprises (SOEs) than in non-SOEs. As an important governance mechanism, management shareholdings can reduce agency costs and mitigate the negative impact of board fissures on cash holdings. Overall, we enrich the literature on the economic consequences of board faultlines and their influence on cash holding value. We also offer companies practical suggestions for improving the supervisory mechanism of their board of directors.     

COVID-19 and business renewal: Lessons and insights from the global airline industry

The emergence of the COVID-19 pandemic has adversely affected the fortunes of multiple companies around the globe. Accordingly, questions are increasingly being asked about how organizations can revitalize during and after a crisis. Yet, we have limited understanding of how organizations renew themselves during crises over time. We explore this question through the lens and examination of two South-Asian airlines: Pakistan International Airlines and Sri Lankan Airlines. The cases offer important insights into the reasons behind underperformance of state-controlled enterprises and renewal activities. We shed light on strategic renewal (SR) in the wake of increasing liberalization and deregulations in the global airline industry. To this end, we propose a four-stage approach towards renewing such underperforming organizations to respond effectively to black swan events and external shocks.     

Effect of CEO power and board strength on bank performance in China

Given that a powerful CEO is more likely to overcome problems and control performance in a firm, this study first focuses on exploring whether CEO power positively affects certain measures of bank performance and which sources of CEO power have these positive impacts. Next, this study further analyzes whether the positive impact of CEO power on performance is negatively mediated by board strength. Our sample includes data on the three main types of Chinese banks for 2006 to –2016.Our results show that CEO structural power significantly improves a bank’s overall profitability, risk-taking ability and lending quality, CEO ownership power significantly raises a bank’s lending quality, and CEO expert power significantly increases a bank’s overall and shareholder profitability. As considering the endogeneity, CEO prestige power significantly improves a bank’s overall profitability. Next, we use the proportion of independent directors as our measure of board strength and find that a stronger board reduces the beneficial effects of CEO structural power on a bank’s lending quality, of CEO ownership power on shareholder profitability, and of CEO expert power on lending quality. There are similar harmful mediating effects when we use the proportion of foreign investors and board size as measures of board strength. Our results can help Chinese bank authorities develop policies to appropriately raise bank CEOs’ power and reduce board supervision of CEO power.     

A novel profit cutting mechanism for Chinese Banks: Theory and Multi-dimensional evidence

As China’s macroeconomic growth faces increasing pressure from the global COVID-19 pandemic, a surprising and politically controversial phenomenon has emerged: the profitability of banks in China exceeded that of enterprises and non-financial industries. The People’s Bank of China and regulatory authorities have hence taken measures to incentivize banks to transfer part of their profits to enterprises, with the aim to stabilize enterprises and employment. This paper proposes a novel profit cutting mechanism focusing on loan structure adjustments to address the limitations of the current approach centering on lowering loan interest rates. The theoretical and empirical analysis show, at both the macro and micro level, that an increase in the proportion of credit loans can benefit the development of enterprises without weakening banks’ operating performance in the long term, leading to a Pareto improvement within enterprise-banking sectors. The findings suggest that banks in China should gradually adjust their loan structures by providing greater credit loan access to enterprises, either voluntarily or directed by policy.