Working capital management,corporate performance,and financial constraints

This paper examines the linkage between working capital management and corporate performance for a sample of non-financial UK companies. In contrast to previous studies, the findings provide strong support for an inverted U-shaped relation between investment in working capital and firm performance, which implies the existence of an optimal level of investment in working capital that balances costs and benefits and maximizes a firm's value. The results suggest that managers should avoid negative effects on firm performance because of lost sales and lost discounts for early payments or additional financing expenses. The paper also analyzes whether the optimal working capital level is sensitive to alternative measures of financial constraints. The findings show that this optimum is lower for firms more likely to be financially constrained.     

The impact structure of social capital on corporate performance: Empirical evidence from listed companies in China

Vertical relationships with the government, particular relational capital and organizational social network capital, constitute corporate social capital (CSC). Using the empirical data of 97 listed companies in China, this paper examines the impact of CSC on corporate performance, finds that CSC has a positive impact on sales revenue but an insignificant impact on the improvement of ROA. More specifically, when a firm enlarges its sales revenue, the function of organizational network capital is stronger than that of a particular relational capital and that of governmental connections. The paper also finds that state-owned enterprises (SOEs) have more advantages in using governmental connections, therefore leading to better social status than non-SOEs do, who have fewer advantages in using any particular relational capital. The article suggests that managers should appraise carefully the effectiveness of CSC, and combine it with other resources; firms should distinguish the structure of the impact of CSC on performance improvement in a dynamic way. With respect to the implication of this paper, it could help in analyzing firm behaviors in the transitional China. Translated from paper in International Symposium on Entrepreneur Research and Education, 2006, April (in Chinese)     

大股东制衡机制与现金股利的隧道效应——来自1999-2003年中国上市公司的证

In this paper, due to the important influence of corporate governance on corporate financial behaviors and from an angle of corporate governance, we develop six hypotheses based on overseas and home relevant researches and data of Chinese listed companies from 1999 to 2003, and then we do hypotheses testes with regression models to examine the impact of share percent of the top 5 shareholders and counterbalance mechanism among blockholders on cash dividend distribution of listed companies, and to explore influence and counterbalance mechanisms in tunneling of cash dividend which derived from the special phenomena of “same shares same rights but different price”. We find that share percent of top 5 shareholders, control ability (or combined control ability) and balance degree (or combined balance degree) of blockholders have important influence on tunneling of cash dividend distribution. Lastly, the paper proposes five suggestions to restrict controlling shareholders to enlist private benefits from tunneling of cash dividend and to protect rights and interests of small and medium shareholders.     

Markets for risk and openness to trade: how are they related?

If protectionist trade policies aim to insure domestic industries against swings in world market prices, the development of financial markets could lead to trade liberalization. Likewise, trade liberalization could lead to the development of financial markets that help agents diversify the added risks. In this paper, we empirically address the hypothesis that there is a positive interdependence between financial development and liberal trade policies. We find a positive and economically significant relationship between the two, with causation running in both directions. The results are, however, somewhat dependent on the measure of trade policy being used.     

Financial intermediaries,ownership structure and the provision of venture capital to SMEs: evidence from Japan

This paper examines how the provision of venture capital to small- and medium-sized businesses (SMEs) is influenced by the ownership structure of the venture capital provider. We introduce a new and unique dataset from the Japanese venture capital market, comprising data on investment and venture capital activities of 127 Japanese venture capital funds. The data allow us to provide a direct comparison of the behaviour of individual owner-manager venture capitalists versus financial intermediation (e.g., bank’s venture capital divisions). The data indicate owner-manager venture capitalists (financial disintermediation) give rise to much smaller portfolios of SMEs and more advice to entrepreneurs. Across the scope of different financial intermediation structures, including banks, life insurance companies, securities firms, corporations and government bodies, there are further differences in the provision of governance and value-added advice provided to SMEs. Also, the data indicate US-affiliated funds in Japan are more likely to have smaller portfolios and tend to provide more advice to SMEs.

Auditor switching, earnings manipulation and auditor independence: Evidence from A-share listed companies in China

Based on data from Chinese A-share listed companies between 1999 and 2004, this paper examines the causes of auditor switching and its effects on the independence of successive auditors from the perspective of earnings manipulation. Results show that: (1) listed companies manipulate their earnings through replacing their auditor and the successive auditor fails to exercise necessary prudence; (2) for companies reporting profit in the year of auditor change, the formerly low discretionary accruals usually increase significantly after the switch mostly resulting from assets devaluation and adjustments to non-recurring items; (3) In contrast, for companies reporting losses in the year of auditor change, they take a “big bath” to adjust lower earnings of the same year. These findings indicate that auditor change is related to the conservatism of predecessor auditors and it damages the independence of successive auditors.      

Entrepreneurial orientation, management commitment, and human capital: The internationalization of SMEs in India

Small- and medium-sized enterprises (SMEs) make sizeable contributions to the economic success of nations. Research concerning the internationalization of SMEs is available in the context of developed economies but less is can be found dealing specifically with the entrepreneurial behavior and international expansion of SMEs in emerging markets such as India. This research extends the literature addressing the relationships surrounding the internationalization of SMEs in India as related to entrepreneurial behavior, firm resources, and commitment to internationalization. Entrepreneurial orientation, a commitment to internationalization, and the ability to leverage human capital influence the international success of Indian SMEs, based on the analysis of data collected from 150 Indian SMEs.     

The new value imperative for privately held companies: The why, what, and how of value management strategy

This discussion describes the why, what, and how of managing for value in privately held companies. Public companies continue to manage for value, a trend that is now pushing its way inexorably into privately held companies. First, we discuss the dynamics that are creating a value-management imperative for these companies. Second, we provide a signaling model to assist management of privately held companies in deciding whether to emphasize (a) revenue growth, (b) the spread between return on invested capital and the weighted average cost of capital, (c) reduction in the cost of capital, or (d) some combination of these three. The key-value-driver model provides guidance in addressing questions such as: Do we have the right to grow? Should we improve profit performance before we grow? What is our performance in relation to our cost of capital? We also describe how to acquire the data necessary to use the model. Third, we present some important but under-utilized tools based upon transactions cost and strategic cost management theories to assist executives in managing for value and discuss when to apply these tools within a strategic context.     

外商直接投资对我国的工资效应分析——基于1997-2006年面板数据的实证研究

本文利用我国28个省1997-2006年的面板数据实证检验FDI对我国整体以及东部、中部、西部三大区域的工资差距效应和工资溢出效应,结论表明FDI增加了我国内外资部门之间的工资差距,对内资部门的工资溢出效应不显著。分区域来看,FDI显著增加了我国东部和中部地区内外资部门之间的工资差距,但对于西部地区的工资差距不具有显著影响;FDI对东部地区内资部门的工资水平具有正向溢出效应,对中部地区内资部门的工资水平溢出效应为负,对西部地区内资部门的工资溢出效应不明显。     

企业组织资本、战略前瞻性与企业绩效:基于中国企业的实证研究

Organizational capital is an institutional arrangement in a firm’s production and management activities, which helps integrate all resources in the firm and affect the firm’s strategic choice and performance. This paper classifies organizational capital into three subtypes, namely power orientated capital, norm orientated capital and knowledge orientated capital. Moreover, strategic proactiveness is also brought into this influencing process. Results show that strategic proactiveness fully mediates the effect of power orientated capital on firm performance, but partially mediates that of norm orientated capital. It is also found that neither power nor norm orientated capital affects innovative performance, whereas knowledge orientated capital affects directly both financial performance and innovative performance. The significance of this research is to provide a meaningful supplement to the theory of decision-making-process for the top management team. Suggestions on how to cultivate organizational capital are provided for Chinese enterprises. __________ Translated and revised from Guanli shijie 管理世界 (Management World), 2007, (5): 83–93     

制度约束、外商投资与产业结构升级调整——基于省际面板数据的实证研究

本文基于空间经济学,从制度约束的视角对FDI影响产业结构调整的机制进行了系统梳理,并应用1985-2004年省际面板数据,采用双向固定效应模型对FDI与产业结构调整的关系进行了实证检验。结果发现：FDI增加有助于提升第三产业在经济中的比重,降低第二产业比重,总体上有利于产业结构优化升级,并且FDI的产业结构调整效应呈边际递减规律（倒U型走势）。产生这种效应与FDI的资本供给、技术进步、收入漏出效应有关,也与中国金融偏向政策等制度约束有关。政府应继续积极合理有效地引进外资并加强产业引导,同时着力改善制度环境。     

广告代理公司工作环境的不同对广告开创性业务成果的影响——以情绪智商(EQ)和社会智能(SQ)为中心

本研究以广告代理公司中就职的员工为研究对象,对广告代理公司不同的工作环境对广告开创性业务成果的影响进行研究。所得结论为：1、综合广告代理公司和广告制作公司在社会智能的下属属性中社会性技术的心态,情绪智商的下属属性中情绪调整和活用情绪及开创性业务成果认识上都存在着差异;2、广告企划者和创作组广告人的社会智能和情绪智商及开创性业务成果认识识别上没有差异。因此,在广告代理公司中,与创意性成果有着紧密关联的广告企划者和创作组,都非常了解应重视开创性业务的重要性;3、广告人工作时间越长,社会智能和情绪智商对创意性业务成果的认识越高;4,广告人的工作时间和职位越高开创性业务成果认识越高。     

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     

上市公司审计、财务困境与会计师事务所更迭——基于2000-2003年上市公司数据的实证研究

上市公司会计师事务所的更换越来越引起市场、投资者以及研究者的关注。本文主要基于国外的相关研究和中国股市及上市公司的特征，提出八个研究假设，然后构建Logistic回归模型，依据2000-2003年上市公司年报数据进行假设检验，主要考察非标准审计意见、审计者规模、财务困境和审计迟滞与会计师事务所更迭之间的关系。综合Logistic回归分析结果，基本上可以认为，在同等条件下，上年度及本年度被出具非标准审计意见、由规模小的会计师事务所审计、每股经营现金流为负(处于财务困境中)、上年度和本年度审计迟滞时间长的上市公司更有可能更换会计师事务所。同时，被ST以及公司规模小的上市公司更有可能更换会计师事务所。     

公共投资规模、居民支付意愿与住宅价格走势——基于中国30省市截面数据的实证检验

在构建公共物品供给与住宅意愿支付价格关系模型的基础上,利用面板数据检验公共资本量对住宅的溢价效应。实证结果表明公共物品供给对住宅的溢价值有很大不同:生态环境投资对住宅的溢价值最高,其次是公共交通投资;教育投资,尤其是高等教育投资的溢价值较高,而以燃气普及率为代表的城市基础设施投资对住宅也有显著的影响。这说明我国城市居民住宅区位需求已经向多元化和生态化方向发展,交通易达性是居民住宅选择的重要组成部分,高等教育环境普遍为城市居民所关注,扩大基础设施投资规模是提高住宅价值的重要手段之一,重新设计房地产税种和税率是我国房地产税制改革的必然选择。     

对外开放与发展中国家的收入不平等:基于亚洲和拉美国家的比较研究

本文基于要素禀赋理论,在将劳动力划分为低、中、高技能三类的基础上,选取亚洲和拉丁美洲部分发展中国家1960-2005年的数据,建立非平衡面板模型,分析两地区的开放对国内收入分配的影响。实证结果表明,亚洲和拉丁美洲发展中国家的对外开放确实对国内收入不平等起到推动作用。目前的开放有利于中等技能劳动力相对丰裕的发展中国家,而不利于低技能劳动力相对丰裕的国家。总体的贸易依存度对拉美不平等的推动作用更大,但外资对亚洲不平等的推动作用更大;制造业出口倾向于扩大拉美国家的收入差距而缩小亚洲国家的收入差距。     

国际粮价对国内粮价传递效应研究——以大米、小麦和玉米为例

根据2002年1月至2010年12月的月度数据,运用协整分析、误差修正模型以及脉冲响应函数等方法分析了入世以来国际粮食价格对国内粮食价格波动的影响。结果表明:长期而言,国内粮食市场与国际市场的市场整合度不高,价格传递不完全;短期内,国际粮价对国内粮价的影响也较小;国际价格对国内价格变动的贡献在不断加大,但仍处于较低的水平,主要原因来自于进口需求的低水平、政府的边境控制和国内支持政策。