Shanghai Business Research Articles

ESG and Chinese corporate OFDI

In this era of sustainable development, ESG information disclosure and its capacity to fulfill goals have a significant influence on the outward foreign direct investment (OFDI) of Chinese firms. Using data from A-share listed businesses in Shanghai and Shenzhen from 2010 to 2020, this study empirically studies both the impact and mechanism of ESG information disclosure on corporate OFDI. According to the study, the greater a corporate's ESG rating, the more likely it is to engage in OFDI activities. Mechanism analysis shows ESG primarily supports corporate OFDI by easing financial limitations, lowering business risks, optimizing location choices, and strengthening reputation mechanisms. The heterogeneity study indicates this impact is stronger in large-scale firms, state-owned enterprises, and enterprises not subject to key supervision. Lastly, a further study indicates not only that ESG ambiguity reduces the promotion effect of ESG on corporate OFDI, but that high-quality disclosure also promotes OFDI more than purely symbolic low-quality ESG disclosure.

Cities’ labor administrative penalties and labor income share of enterprises

The labor administrative penalties of a city are enforced by the city's labor security administrative department for any breaches of labor security laws, regulations, or norms. The severity of labor administrative penalties differs across cities; thus, this study aims to determine how a city's penalties affect the labor income share of enterprises. We conduct a practical investigation to examine the influence of labor administrative penalties imposed by cities on the internal income distribution structure of firms. This study utilizes theoretical analysis and data on labor administrative penalties in Chinese cities, as well as samples of A-share listed businesses in Shanghai and Shenzhen. From the perspective of the internal income distribution structure, we examine the labor income share of firms and discover that labor administrative penalties in cities significantly raise the labor income share of these enterprises. The share of labor income of enterprises registered in the city increases by 0.9707 % for each additional unit of cities' labor administrative penalties (i.e., for a one-time labor administrative penalty per 10,000 people). The conclusion remains valid even after excluding the endogeneity and robustness tests. Regional labor administrative penalties can enhance the internal management of enterprise quality by promoting transparency and deterring non-compliance. This, in turn, mitigates credit risk for enterprises by fostering stable labor relations. Enhancing the quality of internal control and mitigating credit risk can lead to an increase in the labor income share of firms. An analysis of heterogeneity shows that the impact of labor administrative penalties in cities on increasing the percentage of labor income varies. The impact is more pronounced for state-owned firms and enterprises with low levels of investment.

Low carbon cities pilot, executive environmental cognition, and enterprise green technology innovation

AbstractThe potential of the low carbon city pilot (LCCP) to foster enterprise green technology innovation (EGTI) is contingent upon enhancing the quality of urban development, improving the ecological environment, and ultimately achieving the objective of “double carbon” reduction. Due to this, this article uses data from Chinese A‐share listed businesses in Shanghai and Shenzhen from 2009 to 2021 to investigate the effect of LCCP on EGTI. It is found that LCCP significantly contributes to EGTI, and a number of robustness tests later, this finding remains valid. The mechanism analysis confirms that LCCP promotes EGTI by weakening economic policy uncertainty and increasing firms' R&D investment. Through the heterogeneity analysis, this paper explores that optimizing corporate staff structure, increasing media attention, and increasing government subsidies are effective paths to promote EGTI development with LCCP. The moderating effect confirms that executives' environmental cognition plays a positive moderating role between LCCP and EGTI. This paper enriches the related research on the evaluation of the effect of low‐carbon pilots and provides important policy insights for promoting the development of corporate green transformation.

The positive effects of symbolized characteristics of Luojing cross pattern decoration on public anxiety disorders based on social psychology

BackgroundIn recent years, the incidence of anxiety disorders has been increasing. The cause of anxiety disorders is not clear, but it may be related to genetic factors, personality characteristics, cognitive processes, etc. In order to study the positive impact of anxiety disorder among people in intangible cultural heritage, the social behavior of Luojing cross pattern symbolization and the emotional face of people with anxiety disorder were identified.Subjects and MethodsThe study used task-state fMRI technology, which required participants to complete the task of emotional face recognition during the MRI scan. The study compared the difference in activation of brain regions under positive and negative emotional faces between the GAD patient group and the healthy control group. SPSS24.0 was used for data analysis.ResultsIn positive mood, compared with healthy controls, the brain regions with significantly enhanced activation in the anxiety disorder group included the right posterior central gyrus (t=3.02, P<0.05), the right superior temporal gyrus (t=3.86, P<0.05), and the right caudate nucleus (t=4.02, P<0.05). The brain regions with significantly weakened activation in the anxiety disorder group included the right superior frontal gyrus (t=3.11, P<0.05), the right medial frontal lobe (t=4.01, P<0.05), the left middle frontal gyrus (t=2.69, P<0.05), the left insula (t=3.08, P<0.05), the left anterior cingulate gyrus (t=2.38, P<0.05), the left hippocampus (t=3.48, P<0.05), etc.ConclusionsWhen the Luojing cross pattern ornament was symbolized, the mood of the people with anxiety disorders was more positive. This helps in the diagnosis and treatment of anxiety disorders from a social perspective.AcknowledgementA School-level Educational Teaching Research Project at Shanghai Business School in 2023 (No.SBS-2023-XJJG-07); Shanghai Cultural and Educational Integration project in 2023.

Equity ownership concentration’s impact on corporate internal control: the moderating effects of female directors and board compensation

By promoting diversity in equity ownership concentration, strengthening female representation on boards, aligning pay with sustainability goals, and implementing strong internal control processes, companies can integrate sustainable practices into their operations, improve their sustainability performance, and attain long-term environmental and societal health. Therefore, this study examined the relationship between ownership concentration and internal control through the sustainability lens, specifically focusing on the moderating effects of female directors and board compensation. Data from a sample of 1609 A-share listed businesses in Shanghai and Shenzhen between 2012 and 2021 were analyzed. The findings from the fixed effects model revealed the following: ownership concentration negatively affects internal control; the number of female directors positively influences internal control; female directors actively moderate the relationship between ownership concentration and internal control; and board compensation enhances the effectiveness of internal control. These insights provide valuable data for businesses to enhance their internal control systems, appoint key personnel, and advance their sustainability goals. This study suggests that linking board characteristics to corporate internal control can lead to strengthened sustainable objectives. It also incentivizes directors to prioritize and integrate sustainability concerns in their decision-making. Furthermore, by ensuring that compensation reflects sustainability performance, firms can cultivate a sustainability-based culture and drive effective internal controls that support sustainable practices, ultimately contributing to long-term environmental and social well-being.

Examining the Relationship between the Integration of Industry and Education and Student Career Mental Health Development: A Case Study of First-year Enterprise Internship at Shanghai Business Accounting School

This study aims to evaluate the effectiveness of industry-education integration on student career development by assessing the vocational personality traits and achievement motivation levels of 994 first-year vocational students from Shanghai Business Accounting School. The MBTI (Myers-Briggs Type Indicator) career personality questionnaire and achievement motivation level questionnaire were employed to measure the outcomes of industry-education integration and provide guidance for career guidance education and enterprise internships for vocational students. The findings indicate that among the four temperament types, the largest proportion is observed among idealists, accounting for 31.3%, while empiricists have the smallest representation at 14.6% among the first-year vocational students. Regarding achievement motivation, the overall achievement motivation score of the first-year vocational students is below zero, indicating a relatively low level of achievement motivation. Specifically, both empiricists and idealists demonstrate a relatively low level of achievement motivation in terms of vocational personality traits. A follow-up assessment of achievement motivation levels was conducted after a short-term enterprise internship, revealing a significant improvement in the achievement motivation levels of the vocational students. This suggests that the dual-subject educational model under industry-education integration can effectively enhance students' vocational skills and activate their internal motivation, thereby improving their achievement motivation and overall competitiveness. By leveraging industry-education integration, the school aims to cultivate high-quality talents and address specific talent shortages in the market, ultimately achieving mutual success between talents and the market.

An Analysis of COVID-19 of the Role of Promotion of Chinese Public Health

With the development of the COVID-19, more and more countries have paid little attention to it to attach great importance to it. Among them, China has been committed to China's public health and international health. First, China's strict prevention of epidemic situation use; Second, at the international health conference, China and other countries worked out plans together. However, China's epidemic prevention and control still has certain limitations, mainly in two aspects. First, during the epidemic period, the rescue of emergencies was not in place; Second, China's technology still needs considerable development. Therefore, with the help of a scientific analysis model, this paper makes a comprehensive study on the role of China in public health. The prediction of the analysis is extracted from the methodological system suitable for public health system research (Chinese health resources lichengyue, etc.), An empirical study on the dependency structure and Risk Spillover Effect between China and the global stock market under the impact of the COVID-19 based on msgarch EVT copula model (Journal of Shanghai Business University, Su Zhi, etc.) and public crisis and individual self-education awakening: Humanistic evidence for the prevention and control of the COVID-19 epidemic (Journal of Hebei Normal University, tianyangyi). According to the development of COVID-19, these three articles have launched a series of discussions and studies around the theoretical and practical problems to be solved in the construction of public health system, and summarized the corresponding methods. The conclusions of this paper are within the scope: (1) through the policy comparison between China and other countries, it is concluded that China attaches great importance to the epidemic situation. During the epidemic period, China promotes the preventive role, highlights the style of a big country, and plays a decisive role in the international health organization. (2) Even if China has some shortcomings, it is already making efforts to improve and go hand in hand with other countries.

The association between spatial attributes and neighborhood characteristics based on Meituan take-out data: Evidence from shanghai business circles

The success of a city increasingly depends on its role as a consumer centre. The new form of consumption is increasingly playing the leading role in urban consumption growth. Based on Meituan take-out data, this paper investigates quantitatively the spatial differences and explores the associations of the number of take-out with neighborhood characteristics on the scale of business circles in Shanghai by spatial econometric model. The results show that: (1) the average order quantity and consumption amount have the gradient consumption trend of the inner ring > the middle ring > the outer ring > the suburban ring. The spatial distribution of take-out in business circles is bounded by the Huangpu River, with an obvious pattern of more in the west and less in the east. (2) Three types of food distributions, traditional take-out, fashion casual take-out and supermarket and fresh take-out within business circles have obvious differences. In many business circles, fashion and leisure food delivery is significantly higher than traditional food delivery. Supermarket and fruit and vegetable take-out is scattered among business circles and is evenly distributed around the inner ring. (3) Economic level, population concentration, office and traffic factors have significant effect on the number of take-out. In detail, the impact on the volatility of dependent variables is as follows: catering industry > the number of white collars > population density > per capita consumption > traffic facility. This study proposes that office and catering industry, multi-centre city and traffic accessibility should be further strengthened in the coordinated development of Shanghai business circles so as to improve take-out economy.

Human Capital and Organizational Performance Based on Organizational Innovation: Empirical Study on China

It is now entering the knowledge-based economic era globally. In the new era, the real dominant resources and decisive production factors are not capital, land, or labor, but knowledge. In such an era, knowledge workers play critical roles in the business activity. Employees with knowledge would become the human capital of a company. High-tech industry has got in the giant competition era. Under the global competition and the constant innovation of knowledge-based economy, it becomes a worth discussing issue for high-tech businesses maintaining or enhancing the firm competitiveness. Aiming at high-tech industry, the supervisors and employees of high-tech businesses in Shanghai are distributed 420 copies of questionnaire. Total 322 valid copies are retrieved, with the retrieval rate 77%. The research results show significantly positive effects of 1.human capital on organizational innovation, 2.organizational innovation on organizational performance, and 3.human capital on organizational performance. According to the results, suggestions are proposed, expecting to help high-tech businesses, when encountering the challenge in the industrial environment, create more performance and benefits to achieve the sustained-yield management.

SHANGHAI IN THE NEW ECONOMY OF GLOBAL FLOWS SHAPING URBAN FORM AND CONNECTEDNESS IN THE DIGITAL AGE

This paper is a contribution to the significant research program having developed around the concept of the global city over the last four decades in urban sociology and in political geography. Global cities can be defined both as places and as locations in a network of flows. We use a network and complexity theory perspective to contribute to the debate about global cities and we apply this approach to a rising global city: Shanghai. Cities are networks from which locations emerge, and global cities are the places that emerge as interconnected command centres in the most dynamic and connected nodes in the global network of flows. As places, global cities present a highly unequal landscape of economic growth at intra-urban scale, with peaks of extreme concentration of wealth creation in specific locations within their urban space. To acquire a similar intensity of agglomeration economies in high-end services and in finance as global cities such as London, New York, Tokyo, Seoul, Singapore, and Hong Kong, Shanghai spatial structure needs more concentration and a more complex articulation of its economic densities. Pareto distributions, which are the “signature” of complexity, are the hidden order of the spiky spatial economic landscapes of global cities, for the distribution of people, jobs, and economic densities, office space density, accessibility to jobs, rents, subway network centralities. Within the dynamics of global networks, Shanghai challenge is to become a hub across five flows of goods, services, finance, people, and data and communication, in which Singapore and Hong Kong have acquired dominant positions as waypoints. The transformation of the global landscape of flows with an increasing growth of knowledge-based flows, cross-border flows, and digital flows puts Shanghai business model, dominated today by goods flows, at risk. Shanghai would benefit developing stronger air and Internet connectivity and building collaborative bridges with global cities.

A new approach factor- entropy with application to business costs of SMEs in Shanghai

Business cost is acknowledged as one of the priorities in SMEs research. In thisstudy, the business cost of SMEs in Shanghai was primarily measured using Factor-Entropy analysis method. The purpose of this study is to effectively resolve the issueof simplification and assignment evaluation index system on business costs of SMEsin Shanghai. However, this study uses factor analysis to interpret the data onindicators, through a cross-sectional survey, considering the objective empowermentwith entropy method. It was shown that factor-entropy method to evaluation indexsystem has advantages. The samples selected involves 309 executives and managersof 16 SMEs in shanghai that are in support of the development funds of ShanghaiSMEs in China in 2013. Finally, Factor-Entropy analysis method is a combination ofsubjective and objective evaluation method, which are the indicators of the maincomponent indexes calculated entropy valves and sorting with scores. The resultsshow that the impact of the external environment (Policies and market-orientedoperation) in the Multi-target of Business-cost was significant and positive. Thevalue obtained in this study is to provide an applicable unique measurement methodto situations where the necessary information is insufficient for complex or fuzzysystems and relations, and mainly identify and evaluate information of businesscosts in small medium-sized businesses in Shanghai.

The Prediction for Shanghai Business Climate Index by Grey Model

This study predicts Shanghai Business Climate Index from the third quarter of 2013 to the first quarter of 2014 by Grey Model. Business climate index (enterprise integrated production business index) is the judgments and expectations index to the development of an enterprise in the future. By comparing the forecasting accuracy of three grey models, i.e., GM (1, 1) model, Verhulst model and the DGM (2, 1) model, the results show that the forecasting accuracy of GM (1, 1) model is higher than Verhulst model and DGM (2, 1) model. And GM (1, 1) model is used to predict Shanghai business climate index in the next three quarters.

Small firm entrepreneurial outsourcing: traditional problems, nontraditional solutions

Purpose – Pursuing objectives despite limited internal resources and leveraging external resources despite non‐ownership are familiar hallmarks of entrepreneurial firms. Although outsourcing is the standard way for businesses to surmount these barriers, entrepreneurial firms often lack the resources to purchase outsourcing arrangements. The purpose of this paper is to shed light on how entrepreneurial firms can better procure and benefit from outsourcing arrangements.Design/methodology/approach – The paper examines six entrepreneurial firms in a Shanghai business incubator as they undertook a variety of outsourcing arrangements. It utilizes an integrative framework based on transaction cost theory, resource dependency theory, and the resource‐based view. It then cross‐hatches those three theory bases with four outsourcing modes (full, partial, spinout, inter‐outsourcing) and case study methodology.Findings – The paper's findings yield three novel propositions for strategic and ex ante entrepreneurial firm...

The ERP system impact on the role of accountants

PurposeThe purpose of this paper is to discuss the impact of an Enterprise Resources Planning (ERP) system on the role of accountants, to provide job qualifications for their reference.Design/methodology/approachThis research adopts the case study method, using on‐the‐spot interviews and a questionnaire to find out the effects of an ERP system on the role of accountants.FindingsThe role of accountants is mainly to be transaction data handlers and financial report providers. Clearly, accountants must have certain degree of knowledge in the realm of traditional finance accounting. In addition, accounting supervisors think implementing an ERP system changes the role of accountants.Research limitations/implicationsThe data collected by the authors are mainly from the Shanghai Financial Center and regional businesses in Shanghai, Beijing and Taiwan. The authors are only able to study the impact of ERP systems on the role of accountants in the short‐term rather than in the long‐term.Originality/valueIt is widely accepted that an ERP system is more than just an accounting information system, so implementing an ERP system will not necessarily promote the positions of the accounting department and accountants on the subjective cognition of accountants. Accountants need to have knowledge of financial accounting, IT and management after ERP implementation.

Cultural differences in leadership in SMEs: new product development in China and Germany

The present research examines the effect of national culture on the relationship between leadership behaviour and early- and late-stage activities (initiation and implementation) in the new product development process in SMEs. The research develops and empirically validates a theoretical framework with large-scale survey data from Western Germany and China (represented by the Greater Shanghai business region), two culturally diverse settings. The findings suggest that national culture has a significant moderating impact on the effect of certain antecedents to successful new product development activities: participative leadership is a more important driver of new product development activities in Germany than in China, while consideration and management emphasis affect new product development more in China than in Germany. Moreover, the study indicates that the effects of culture on the relationships examined grow stronger as an organisation’s size decreases. The present research addresses recent calls in the new product development literature to broaden our understanding of cultural dependencies in our theoretical models. The paper concludes by drawing implications for both theory and practice.

Revolution and business: Shanghai in the Revolution of 1911

From 1911 to 1913, in big streets and small lanes, in famous parks and thriving stores, and in tea houses and grand restaurants located in such cities as Shanghai, Nanjing, Beijing and Wuchang, numerous business opportunities were born out of the Revolution of 1911. By using the political giants and military leaders around Shanghai, business firms skillfully dealt with the difficulties of the continually changing political situation and managed to keep their businesses afloat, succeeding in their response to the consumption demands of the public. It can be argued that the Revolution of 1911 played a distinct role in the development of businesses in Shanghai during that time.

The Effects of Nationality Work Role Centrality, and Work Locus of Control on Role Definitions of OCB

In this study of 116 Chinese managers of state-owned businesses in Shanghai and Tianjin and 109 American managers attending an Executive MBA program, nationality, work role centrality, and work locus of control were examined as possible reasons for why an individual might include behaviors typically characterized as organizational citizenship behavior (OCB) as in-role job behaviors (role definition). Nationality was found to be directly related to role definition. Chinese managers were more likely to define OCB as part of their job than were the American managers. Work locus of control was also found to mediate the relationship between nationality and role definition. However, work role centrality did not mediate the relationship between nationality and role definition as had been hypothesized. Implications for management and further cross-cultural research are discussed.

Measuring the impact of information on development: A LISREL-based study of small businesses in Shanghai

As part of a larger project studying the impact of information on development, an investigation was made of the feasibility of using the LISREL (LInear Structural RELations) model to determine the impact of information, relative to other factors, on development of the small manufacturing business sector in Shanghai, China. Data was collected via questionnaire from 450 businesses in the city. A convergent LISREL model showed that the major factors affecting business success were, first, business environment, and, second, information use. Informal information use was more important to business success than use of more formal sources. © 1997 John Wiley & Sons, Inc.

Successful joint ventures in the heart of the dragon

The Open Door Policy in China (the People's Republic of China) since 1979 has primarily attracted the Overseas Chinese. Although this group has contributed to the remarkable economic development of the areas which neighbour Hong Kong and Taiwan, industrial modernization in China is contingent on the transfer and effective assimilation of leading-edge technologies from the West. World-class firms are being lured to Greater Shanghai, a coastal metropolis with a strong business tradition and a cosmopolitan past. Unfortunately, potential foreign investors are hindered by the scarcity of reliable information about the current Shanghai business environment. The authors used an interpretive research methodology to examine critically the experiences of the pioneering joint ventures in Shanghai. Effective technology transfer mechanisms and soft management skills, to develop relationships, motivate workers and bridge differences in cultures and systems, were found to be critical success factors.