Corporate Performance In China Research Articles

The Effects of Environmental Regulation on Corporate Performance: A Chinese Perspective

This paper presents empirical evidence on the effects of environmental regulation announcements on corporate performance in China when performance is proxied by stock returns. While some results indicate the effectiveness of environmental regulation, others point to the opposite. The perverse results are explained in terms of the lack of enforcement of environmental regulation, which is attributed to legislative shortcomings, poorly designed policy instruments, an unsupportive work environment for environmental regulators, a pro-growth political and social environment, and a cultural predisposition to harmony and consensus-building among those involved in the process.

중국기업의 ERP시스템 도입 성과에 관한 연구 - 중국의 상장 기업을 중심으로 -

중국기업의 ERP시스템 도입 성과에 관한 연구 - 중국의 상장 기업을 중심으로 -

The Effects of Environmental Regulation on Corporate Performance: A Chinese Perspective

This paper presents empirical evidence on the effects of environmental regulation announcements on corporate performance in China when performance is proxied by stock returns. While some results indicate the effectiveness of environmental regulation, others point to the opposite. The perverse results are explained in terms of the lack of enforcement of environmental regulation, which is attributed to legislative shortcomings, poorly designed policy instruments, an unsupportive work environment for environmental regulators, a pro-growth political and social environment, and a cultural predisposition to harmony and consensus-building among those involved in the process.

Corporate sustainability development in China: review and analysis

Purpose– The purpose of this paper is to threefold. The first purpose is to review and critically analyze corporate sustainability development (CSD) research in China. Second, the paper extracts a unified theoretical framework among CSD drivers, CSD practices, and corporate performance in China. Finally, it seeks to identify links between CSD and industrial management and data systems (IMDS) topics.Design/methodology/approach– A comprehensive and structured review of the research literature investigating CSD in China was completed. Categorizations and classifications of the literature were summarized. A critical analysis of the literature resulted in a generic theoretical framework that can be used for evaluation of the literature and further investigation.Findings– The literature review found over 189 papers on CSD in China published from 1997 to 2013. The framework developed focussed on relationships among drivers, practices, and performance within a CSD in China context. The framework provides useful insights into the implementation of CSD practices. The integration of the three dimensions of sustainability and decision-making methodology are still rare. Specific features of CSD are also reviewed with a linkage to IMDS research around information technology, business process modeling, and supply chain management.Originality/value– This is one of the first works to provide a comprehensive focus on CSD in China. The theoretical framework was developed for CSD in China to clarify the relationships between the drivers, the corporation’s characteristics, CSD practices, and corporation performance and will prove useful for future research development and investigation. The linkage to IMDS topics is novel and will help further research related to CSD in China for this journal.

Independent Directors and Corporate Performance in China: A Meta-Empirical Study

This article reviews empirical studies on the relationship between independent directors and firm performance in Chinese listed companies. The purpose is to generalize empirical evidence on the theoretical claim that independent directors can improve firm performance by performing their monitoring role over management as expected by Chinese regulators. To fulfil this purpose, this article conducts a meta-empirical study by collecting 30 sample articles of existing empirical studies on the relationship between independent directors and firm performance in Chinese listed companies after the independent director institution has been introduced from corporate America to corporate China. The meta-empirical study is to review and generalize an integrated empirical evidence whether independent directors can improve firm performance in Chinese listed companies or not. Based on the statistical data from 30 collected sample articles, this article identifies four categories (board independence, independent directors’ characteristic, background and compensation) that authors of 30 sample articles use to test the correlation between independent directors and firm performance in Chinese listed companies. From the integrated empirical evidence from 30 collected sample articles, this article finds on the whole that board independence has no significant impact on firm performance, that independent directors’ characteristics and background have a controversial effect on firm performance and that independent directors’ compensation has a significant positive effect on firm performance. This may suggest that independent directors may primarily play an advisory role but not a monitoring role in Chinese listed companies.

The more the better? Foreign ownership and corporate performance in China

We examine the relationship between the degree of foreign ownership and performance of recipient firms, using a panel of 21,582 Chinese firms over the period 2000–2005. We find that joint-ventures perform better than wholly foreign-owned and purely domestic firms. Although productivity and profitability initially rise with foreign ownership, they start declining once it reaches a certain point. This suggests that some domestic ownership is necessary to ensure optimal performance. We referred these findings to a model of a joint-venture, where strategic interactions between a foreign and a domestic owner's inputs may lead to an inverted U-shaped ownership–performance relationship.

The Different Effects of Social Capital on Corporate Performance in China: An Empesirical Analysis

This article examines the effect of social capital on corporate performance. The empirical data is composed of 101 listing companies in the People's Republic of China. We found that corporate social capital has significant effects on its market performance. However, there is no evidence shows that social capital has significant impacts on corporate financial performance. We also found that the impact of social capital on market performance of non-SOEs is stronger than that of SOEs. Key words: Social capital, corporate performance, listing company, China. Resume: Cet essai examine les effets du capital social sur la performance de l’entreprise. Les donnees empiriques sont composees de 101 entreprises de la Republique Populaire de Chine. Nous trouvons que le capital social collectif exerce des effets signifiants sur leur performance de marche. Cependant, il n’y a pas d’evidence qui montre que le capital social produit des effets signifiants sur la performance financiere de l’entreprise. Nous trouvons aussi que l’influence du capital social sur la performance de marche des entreprises privees s’avere plus forte que sur les entreprises d’Etat. Mots-Cles: capital social, performance de l’entreprise, entreprises, Chine

The More the Better? Foreign Ownership and Corporate Performance in China

We examine the relationship between the degree of foreign ownership and performance of recipient firms, using of panel of 21,582 Chinese firms over the period 2000-2005. We find that joint-ventures perform better than wholly foreign owned and purely domestic firms. Although productivity and profitability initially rise with foreign ownership, they start declining once foreign ownership reaches beyond 64%. This suggests that some domestic ownership is necessary to ensure optimal performance. We rationalize these findings with a model of a joint-venture, where strategic interactions between a foreign and a domestic owner’s inputs may lead to an inverse U-shaped ownership-performance relationship.

Executive perks: Compensation and corporate performance in China

Many studies have examined CEO compensation in developed countries, where a long tradition of disclosure renders data readily available. In emerging economies, particularly in China, where market-based compensation is a relatively new phenomenon, there are few studies of CEO compensation. In addition, information on the use of non-cash compensation is almost absent. Building on the general literature on CEO compensation, and Chinese economic and management studies, this article singularly contributes to the extant literature by (1) examining the motivational determinants of CEO perk compensation, on the one hand, and (2) exploring the relative contribution of perks to performance. We anticipate that perks can serve two roles in China: (1) to provide incentives to deter managerial shirking, and (2) to facilitate work and improve production. We find that perks are positively associated with current and future returns on assets, supporting the view that some types of perks may improve firm profitability and/or that perks are paid as a bonus to reward performance. Our findings from stratified samples suggest that perks may incentivize managers, even after controlling for firm fundamentals, such as firm size, growth opportunity, and leverage.

Diversification and Corporate Performance in China: An Agency Theory Perspective

ABSTRACT This paper examines diversification and corporate performance relationship in the framework of agency theory. Contrary to most of the findings from Western developed countries and emerging markets, the study reports a statistically significant U-shape relationship. The finding is also inconsistent with the notion that managerial discretion contributes to the diversification decision and results in discount firm value. The robustness test confirms these results after controlling for other firm level variables. These conclusions suggest that the understanding in Western literature about diversification performance provided by the agency theory may not be automatically applicable to the case of China's companies, and a highly diversified corporate practice could still be beneficial in China.

Independent Directorship and Corporate Performance: Some Further Testing from the China Case

This study attempts to re-examine several hypotheses suggested by the literature concerning the relationship between corporate governance and corporate performance using the data from China. The findings of the paper suggest that corporate performance in China is mostly influenced by other economic variables, not by corporate governance and the hypotheses that corporate governance will have positive on corporate performance is not valid. This poses a question for China as to whether the current top-down approach to corporate governance (which is largely based on duplicating the Anglo-American model) will be effective in linking the firm performance and independent directorship.