The role of personal relationships in inter-firm alliances: Benefits, dysfunctions, and some suggestions

Strategic alliances have become an important means for developing and improving a firm's level of competitiveness. Although attractive, alliances are risky and difficult to manage. One crucial mechanism in managing and reducing alliance risk is reliance on personal relationships between managers in partnering firms. Personal ties are beneficial in that they can form the basis for developing trust between partners, and aid joint decision-making and information sharing, thereby reducing some of the risks inherent in alliances. Despite their usefulness, however, personal relationships may have drawbacks. For example, strong interpersonal ties in alliances can sometimes prevent dissolution of faltering arrangements, as feelings may prevent the making of difficult, yet prudent, termination decisions. In order to combat this possibility, firms can reduce the downside of personal relationships by carefully managing the role of performance managers across the life of the relationship.     

Corporate governance reforms in China and India: Challenges and opportunities

In this article, we examine the evolution of corporate governance reforms in the emerging economies of China and India. We first describe the two major driving forces behind governance reforms in these countries: privatization and globalization. After summarizing the evolution of governance reforms in each context, we identify four major obstacles that impede their implementation in both countries, namely: (1) lack of incentives, (2) power of the dominant shareholder, (3) underdeveloped external monitoring systems, and (4) shortage of qualified independent directors. Next, we highlight practical implications of these governance challenges for foreign firms contemplating, or already involved in, major investments in these emerging economies. We emphasize that foreign firms that are sensitive to context-specific challenges are more likely to put in place appropriate contractual or other safeguards, as well as identify more practical and meaningful forms of participation in the governance of their ventures. Finally, we conclude with some implications for future research.     

Outward foreign direct investment of publicly listed firms from China: A corporate governance perspective

This study examines the influence of key corporate governance factors on the internationalization decisions of emerging economy (EE) firms. By integrating the resource-based view and agency theory, it investigates the effects of controlling owner identity, non-controlling shareholder ownership, and the interactions of these with CEO power, in order to reveal their individual and joint effects on the outward foreign direct investment (OFDI) propensity of EE firms. This empirical study of 224 Chinese publicly listed firms found positive effects of ownership of domestic institutional investors and foreign corporations on the OFDI propensity of the firms, which were moderated by the power of the CEOs in these firms.     

Why a poor governance environment does not deter foreign direct investment: The case of China and its implications for investment protection

It is widely believed that countries with a poor governance environment (e.g., weak laws and rampant corruption) do not attract foreign direct investment (FDI); however, our study suggests otherwise. Using China as a case study, this article argues that the prevailing theory that a good governance environment begets FDI is incomplete. When faced with a poor governance environment, investors choose direct investment over indirect (portfolio) investment because the former can be better protected by private means. In fact, China attracts a large amount of FDI because of, rather than despite, its lack of a good governance environment. In conclusion, this article offers strategies to better protect investments and to chart through the pitfalls resulting from rapid changes in the governance environment.     

The role of corporate governance in FDI decisions: Evidence from Taiwan

There has been a considerable literature on the determinants of why firms undertake foreign direct investment (FDI), but very little on whether firms with different governance characteristics are more or less likely to venture overseas. For example, are family-controlled firms more predisposed to FDI than firms, with similar attributes, but different forms of ownership? Does the presence of institutional shareholders suggest a greater propensity to invest abroad? Does the composition of the Board of Directors have an impact? Most extant studies of corporate governance focus on the impact of governance factors on firm performance. However, these performance outcomes are a function of the strategic decisions made by the firms, which suggests it might be useful to consider the relationship between corporate governance factors and particular strategic decisions. One example is the decision to undertake foreign direct investment. The two main strands of IB literature on the determinants of FDI have little or nothing to say about how corporate governance factors might affect the FDI decision. Both internalisation theory and the resource-based view see FDI primarily as a means by which firms can appropriate rents in overseas markets from the exploitation of their idiosyncratic resources and capabilities. This paper extends this literature by investigating the effects of governance factors on the decision to undertake FDI. In particular, we want to assess the impact upon the FDI decision of (a) the extent of family control, (b) the presence of domestic and foreign institutional shareholders, and (c) the composition of the Board of Directors. We investigate these effects using a sample of 228 publicly listed firms in Taiwan, and our results clearly indicate that family control and share ownership by domestic financial institutions in Taiwanese firms are associated with the decision to undertake FDI. We also find that corporate governance impacts in different ways with regard to Taiwanese FDI in China in comparison to Taiwanese FDI in the rest of the world.     

从"黑大陆"到"灰大陆"——我看中国物流30年

中国改革开放的30年,也是中国物流的30年。30年中,我国物流业从"黑大陆"发展到了"灰大陆",这是一个非常大的进步。"灰大陆"是发展中的状态,是不太成熟的状态,应实事求是地面对"灰大陆"。"灰大陆"反映了这30年没能解决的问题之多,如我们在物流方面缺乏创新;领导体制问题没有解决,甚至存在扭曲;我们对现代物流还没有完全的真知,视野太狭窄,"过热"现象时有发生;企业的系统现代化问题没有得到真正解决。"灰大陆"状态可能会持续较长的时间,但灰色必然会逐渐消退减弱,而伴随着这个过程,我国物流业必将取得更大的发展。     

The sensitivity of compensation to social capital: Family CEOs vs. nonfamily CEOs in the family business groups

This study examines the role of CEO social capital, defined as external directorship ties held by the CEO, in determining family vs. nonfamily CEOs' compensation in a network-based business society and governance system. Using a sample of pooled data of family firms listed on the Taiwan Stock Exchange (TSE) from 2000 to 2002, the empirical results show that CEO social capital is an important determinant in setting nonfamily CEOs' pay level, consistent with the expectation of the contractual governance model. By contrast, as expected by relational governance model, family CEOs' social capital is not incentive-relevant. This study extends the literature on CEO compensation by documenting that in a market where guanxi and connections are considered valuable business tools, corporations will be willing to compensate professional CEOs for the social capital that they bring to the firm.     

The origins of business groups in China: An empirical testing of the three paths and the three theories

The available empirical literature tends to focus on the performance comparison between business groups (BGs) and non-business groups, and there is no study that quantitatively verifies the origins of the business groups, particularly in China. This paper uses the survey data of SOEs (state-owned enterprises) in China to verify the three paths toward business groups, such as M&As (merger and acquisitions), spin-offs and joint ventures. This study discusses three alternative theories to explain the emergence of the business groups in China. These are the market-based view, the state-activism view and the resource-based view. This paper found that the greater autonomy given after changing into a shareholding corporation is one of the most consistent and significant factors leading to the business group, regardless of the paths. First, this implies that SOEs have gone from traditional SOEs, to shareholding corporations, and then finally to business groups. Second, it finds that there are certain differences among the three paths toward the business group. The degree of market competition and control by the city-level government are the significant variables in the path via M&A, toward the business group. This is consistent with the state activism view. The significant variables for the spin-off path are the low leverages and the connection with the state. This is consistent with the resource-based view. The JV (joint venture) path seems to be consistent with the market-based and resource-based view, with the significant variables of private/foreign owner-controller, high investment activity, low leverage and size.     

Globalization and sustainable consumption of shrimp: consumers and governance in the global space of flows

The ongoing process of globalization in food provision is transforming the relationships between producers and consumers as well as the conventional role of governments in regulating the environment. Consumers are increasingly concerned about the environmental and social impacts of food production in developing countries and many are willing to take action. Conceptualizing globalization as the coming about of the network society offers an adequate basis for analysing transitions in food governance including new ways of consumer involvement. The case of shrimp produced through aquaculture in Thailand and consumed worldwide shows how innovative food governance arrangements appear in the context of global modernity. Authority and power in such arrangements are shifting away from national governments and towards producers, processors, traders and consumers along the supply chain.     

从网络广告监管到网络广告治理——公共治理的视角分析

目前,我国网络广告正在逐步勃兴,与此同时,传统的广告监督管理体制与网络广告发展不相适应的问题也日益突出,引发了许多矛盾和冲突。面对市场和政府的双失灵,实现由传统的网络广告监管向网络广告治理的转变成为必然选择。网络广告治理是一项系统工程,单纯依靠政府职能部门无法实现预期效果,需要政府、社会组织、民众等多方共同参与,强调服务导向和参与意识,明确各自的责任,从而形成良好的合作网络,实现网络广告的有效治理。     

The Effects of Corporate-Brand Credibility,Perceived Corporate-Brand Origin,and Self-Image Congruence on Purchase Intention: Evidence From China's Auto Industry

This study aims to investigate the effects of corporate-brand credibility, perceived corporate-brand origin, and self-image congruence on purchase intention. A cross-city survey of China's automobile industry was conducted in four major Mainland cities (Beijing, Shanghai, Guangzhou, and Chengdu). Results reveal that corporate-brand credibility, perceived corporate-brand origin, and self-image congruence have direct positive impacts on purchase intention. Furthermore, corporate-brand credibility and self-image congruence both act as moderating variables in the relationship between corporate-brand origin and purchase intention. Corporate-brand credibility is more significant in influencing consumers’ purchase intention toward the brand than perceived corporate-brand origin.     

我国股票市场涨跌幅限制的作用机制及其影响因素

文章在现有文献研究的基础上引入公司治理水平,建立比例logist模型,区分涨幅和跌幅限制、牛市和熊市的不同情况来研究中国股票市场涨跌幅的作用机制及其影响因素.为了得到可靠结果,模型采用GMM估计,处理了异方差和内生性问题.实证结果表明:系统风险、非系统风险与流动性越大,对股票达到涨跌停板的影响就越大;公司治理结构越好,对股票撞击涨跌幅限制的影响就越小;在牛市与熊市期间涨跌幅限制影响因素的作用具有较大差别.本文研究结果为监管机构因类、适时地调整涨跌幅限制幅度提供了依据.     

An evaluation of corporate governance evaluation, governance index (CGI NK ) and performance: Evidence from Chinese listed companies in 2003

In the present paper, based on samples of 2003, empirical analyses of Corporate Governance Index (CGI ^NK ) and its six dimensions of listed companies in China, the index of controlling shareholders’ behaviors, board governance index, top management governance index, information disclosure index, stakeholders’ governance index, and supervisors committee governance index, are carried out and the results show that CGI ^NK is positively associated with the return on assets (ROA), net assets per share (NAPS), earnings per share (EPS), operating cash flow per share (OCFPS), total assets turnover (TAV), rate of total assets growth (ITA) and Z-score. These indicate that good corporate governance mechanisms improve profitability, stock expansion ability, operating efficiency, growth and development potential, as well as financial flexibility and safety of listed companies. Corporate governance mechanisms of controlling shareholders, board of directors, top management, information disclosure, stakeholders and supervisors committee are largely responsible for decision-making and decision-execution mechanisms, and furthermore, they have direct and profound effects on the performance and value of listed companies. Translated from Zhongguo Gongye Jingji 中国工业经济 (China Industrial Economy), 2006, (4): 98–107     

开发我国农村汽车市场的对策

开发我国农村汽车市场具有重要意义,在分析开发农村汽车市场前提条件的基础上,探讨了开发农村汽车市场的对策：政府发挥宏观职能作用,营造适宜的外部环境;企业应多方努力,从重视市场调研、开发农村市场用车、加大营销力度、完善服务体系等方面开拓农村汽车市场。     

中国会计理论发展:挑战与战略

中国会计理论要更好地满足与切合环境的变革发展,形成一种持续而科学的发展态势,就必须在变革环境中形成一种具有高度理论价值的发展战略;发展中国会计理论必须探索中国会计理论发展所面临的经济、社会、政治全球化与一体化,中国特色社会主义理论和中国改革开放等外部环境以及发展战略,流程技术和组织人员等内部环境方面的挑战,从价值角度去思考中国会计理论的发展战略,充分发现其现有理论的价值,在借鉴或趋同中正确进行价值选择和价值创造,丰富和完善中国会计理论。     

Corporate governance in publicly traded small firms: A study of Canadian venture exchange companies

Most evidence regarding the determinants and effects of corporate governance practices is based on large firms. Herein, we explore these issues in the context of small publicly traded Canadian companies. We exploit the fact that such firms were not subject to corporate governance guidelines prior to 2005 and thus analyze the determinants of voluntary governance practice choices, as well as the effects of those practices on firm performance. Using a unique data set, we construct a corporate governance index for each firm. We measure performance by two variables: quality of accounting earnings and financial performance. The results indicate that corporate governance does matter for smaller traded Canadian firms. We find that both accounting and financial performance are positively related to corporate governance; however, their underlying mechanisms may differ somewhat. Given this result, it would be natural to expect all firms to choose higher levels of governance. However, our results also suggest small firms face resource constraints that limit their choices. We conclude that good governance is an important driver of small firm performance that cannot be neglected by the owners and managers of these firms.     

我国银行间债券市场异常交易的特征、成因及治理

我国银行间债券市场异常交易目的不一、形式多变,具有普遍性、隐蔽性、复杂性和争议性四个特征。实践中,由于交易机制不完善、监管失职、内控失察等原因,债券市场异常交易频繁发生,给市场运行乃至宏观调控带来风险隐患。实际上,异常交易频繁发生是市场失灵、信息效率低下的客观反映,其根本原因是市场交易机制存在缺陷。要有效治理异常交易,必须规范投资者行为,优化市场模式,提高市场透明度,健全完善银行间债券市场交易机制。     

中国上市公司小股东保护:一个公司治理的视角

上市公司小股东权益遭受侵害的一个重要原因在于上市公司治理存在制度缺陷。存在于我国上市公司治理制度中不利于小股东保护。有四大缺陷使其通过各种途径小股东遭受侵害。为完善我国小股东保护制度提出五项建议:稳步推进上市公司股票全流通;建立小股东对控股股东的权力制衡机制;加快董事会制度建设;完善上市公司信息披露制度;构建独立高效的证券司法体系,完善法律救济与实施机制。     

基于服务管理角度的团队旅游干预行为的预防和控制

导游服务是旅行社产品由“虚拟”转化为“现实”的过程，它是一种专业的、高接触性服务。在此过程中，由于旅游者和旅行社、导游人员各自的利益基点不同，他们构成了一个统一对立的矛盾体，由此产生相互间的干预和控制。文章通过对旅游者干预行为的研究分析，提出了旅行社和导游人员预防、控制干预的措施，以期对提高旅行社产品的质量起现实的指导作用。     

Industrial Clusters and Social Networking for enhancing inter-firm cooperation: The case of natural resources-based industries in Chile

This paper deals with the roles of geographic proximity, social networking, and regional culture-structures in triggering cooperation in marketing activities. The role of regional clusters in the growth of firms has been a key research theme. Our study compares marketing externalities and practices in clusters of three key natural resources-based industries in Chile, a region in Latin America where limited research has been conducted. According to the results, both social networking and geographic proximity facilitate inter-firm cooperation in marketing activities. However, these factors are considered differently in each of the three industries studied.