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Article
Publication date: 11 April 2008

Joseph P.H. Fan, Jun Huang, Felix Oberholzer‐Gee, Troy D. Smith and Mengxin Zhao

The purpose of this paper is to provide a systematic comparison of the level of business diversification in China and eight other large economies for the 2001‐2005 period…

3421

Abstract

Purpose

The purpose of this paper is to provide a systematic comparison of the level of business diversification in China and eight other large economies for the 2001‐2005 period. The reasons why publicly listed Chinese firms are more diversified than companies elsewhere are investigated.

Design/methodology/approach

Data were collected on the number of business segments in which publicly traded companies operate from the Thomson One Banker database and analyzed using non‐parametric tests and regression analysis.

Findings

The mean number of business segments per firm varies significantly by country. Notably, there is no evidence in the authors' sample that emerging‐market companies are systematically more diversified than their developed‐market counterparts. In most countries, firms have become less diversified over time. However, there is no such trend in China. The level of diversification of Chinese enterprises does not vary over the authors' study period (2001‐2005), making Chinese firms the most diversified in the sample by 2005. China's growth rate does not seem to explain the higher level of firm diversification. However, the authors find that Chinese state‐owned enterprises (SOEs) diversify their operations more aggressively than other Chinese firms.

Research limitations/implications

Ownership data and business group affiliations were not available for all firms in the sample, making it difficult to control for these effects across economies. The study's findings are limited to publicly traded firms.

Practical implications

Government involvement in SOEs may be contributing to a divergence in the pattern of business diversification between China and other economies.

Originality/value

This paper quantifies anecdotal evidence that Chinese firms are more diversified than similar firms in other countries.

Details

Chinese Management Studies, vol. 2 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Abstract

Details

Corporate Fraud Exposed
Type: Book
ISBN: 978-1-78973-418-8

Article
Publication date: 11 February 2014

Peixin Li and Baolian Wang

A significant number of Chinese companies are listed overseas. The authors aim to examine whether overseas locations affect their financing decision, specifically their…

Abstract

Purpose

A significant number of Chinese companies are listed overseas. The authors aim to examine whether overseas locations affect their financing decision, specifically their capital structure choice.

Design/methodology/approach

Most of the Chinese overseas listed companies are listed in the USA and Hong Kong. As the institutional quality of the USA is better than Hong Kong, the authors, therefore, choose to build the hypotheses from the “law and finance” literature. Specifically, the authors argue that the better institutional environment of the USA can mitigate the information asymmetry problem and the agency problem of financing via equity. Consequently, firms listed in the USA will rely more on equity and have lower leverage ratio. The difference in leverage ratio of US listed and Hong Kong listed companies should be larger when the marginal benefit of better information environment is larger.

Findings

Referring to various data sources, the authors construct a comprehensive list of overseas listed companies in the USA and Hong Kong. The authors collect the accounting and stock performance information from Datastream/Worldscope and the equity offering data from Global New Issue database. The empirical findings provide strong support of the hypotheses: the leverage is 15 percent lower for US listed companies than the Hong Kong listed companies; the results are stronger when the firms face more severe information asymmetry problem; the stock price reacts less negatively for seasoned equity offering in the USA than in Hong Kong.

Practical implications

Most of the Chinese companies decided to be listed overseas because they cannot be listed in the Mainland Chinese stock exchanges. One of the most important motivation is to access to external capital to support firm growth. As the main channel of external financing in the overseas markets is equity since debt is still mainly domestically based, one implication of this paper is that Chinese companies can gain better access to external capital in the USA than in Hong Kong and relax their financial constraint.

Originality/value

There are a considerable number of Chinese companies listed in the overseas markets. Many successful and famous companies are among them. However, almost no research has been done based on them. This paper documents some very important phenomenon of this market. The authors wish that more studies will be conducted. In addition, the study also complements the existing studies on how institutional environment affects corporate financial behavior.

Details

China Finance Review International, vol. 4 no. 1
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 3 January 2018

Basil Al-Najjar

The purpose of this paper is to investigate the effect of corporate governance factors on audit features, namely, audit fees and the selection of Big 4 audit firms within…

1794

Abstract

Purpose

The purpose of this paper is to investigate the effect of corporate governance factors on audit features, namely, audit fees and the selection of Big 4 audit firms within the UK SMEs context.

Design/methodology/approach

The author uses different regression models to investigate the impact of corporate governance characteristics on audit features, and employs cross-sectional time series models as well as two-stage least squares technique. In addition, the author has used logit analysis to examine the effect of corporate governance factors on the selection of Big 4 audit firms.

Findings

The author provides new evidence that governance mechanisms in SMEs affect different audit features. The results show that corporate governance mechanisms are important in determining audit fees. The author detects a positive impact of board independence, audit meeting and board size on audit fees. The author also reports evidence that governance factors determine the selection of Big 4 audit firms. In particular, the author reports that independent directors and audit diligence positively affect the decision to select Big 4 audit firms.

Originality/value

This paper investigates the under-researched relationship between audit features and corporate governance using UK SMEs. In so doing, the author aims to provide new insights into this relationship within the SMEs context.

Details

Journal of Small Business and Enterprise Development, vol. 25 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 15 September 2021

Bo Wang, Qiang Liang, Lihong Song and Erming Xu

With features of both “family” and “business,” family businesses must seek a balance between the emotional aspect of “family” and the economic aspect of “business” in its…

Abstract

Purpose

With features of both “family” and “business,” family businesses must seek a balance between the emotional aspect of “family” and the economic aspect of “business” in its organizational and decision-making processes to ensure the sustainability of the family’s entrepreneurship. This study aims to focus on how internal institutional complexity combined evolves alongside the growth of the family business.

Design/methodology/approach

The research looks, from the perspective of institutional logic, into the Charoen Pokphand Group, which is an epitome of overseas Chinese family businesses and proceeds to build a model of family business growth in the context of institutional complexity.

Findings

The research finds that as a family business grows, institutional complexity inside the organization would change from aligned period to sustaining period and then to dominant period. Then further elucidates the process of proactive response in different stages of the development of a family business. Attaching equal importance to the cultivation of entrepreneurship and to the continuation of family values and culture is the crucial mechanism by which Chinese family businesses seek a balance between family logic and business logic.

Originality/value

This paper unveils the change of institutional complexity in the evolution of family businesses and the process of action of its agency as an organization, and simultaneously partly reveals the features of entrepreneurship that overseas Chinese family businesses have as they grew, which is of positive significance for exploring and building a path of growth unique to Chinese family businesses.

Details

Nankai Business Review International, vol. 13 no. 1
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 7 March 2016

Reza Yaghoubi, Mona Yaghoubi, Stuart Locke and Jenny Gibb

This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which…

7408

Abstract

Purpose

This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which parts of the puzzle are still incomplete.

Design/methodology/approach

This literature review consists of three key sections. The first part of this paper summarises the literature on the cyclical nature of mergers referred to in the literature as merger waves. The second section reviews the causes and consequences of takeovers; it first reviews the causes, or drivers, of acquisitions, while focusing on the fact that acquisitions happen in waves and then reviews the consequences of takeovers, with a predominant focus on the impacts of mergers on the economic performance of acquirers. The third part of the review summarises the theories as well as previous empirical studies on determinants of announcement returns and post-acquisition performance of combined firms.

Findings

Merger activity demonstrates a wavy pattern, i.e. mergers are clustered in industries through time. The causes suggested for this fluctuating pattern include industry and economy-level shocks, mis-valuation and managerial herding. Market reaction to announcement of acquisitions is, on average, slightly negative for acquirer stocks and significantly positive for target stocks. The combined abnormal return is positive. These findings have been consistent over several decades of investigation. The prior research also identifies a number of factors that are related to performance of acquisitions. These factors are categorised and reviewed in five different groups: acquirer characteristics, target characteristics, bid characteristics, industry characteristics and macro-environment characteristics.

Originality/value

This review illustrates a number of issues. Prior research is heavily biased towards gains to acquirers and factors that affect these gains. It is also biased towards finding sources of value creation through mergers, despite the fact that several theories suggest that mergers can be value-destroying. In fact, value destruction is often attributed to managers’ self-interest (agency problem) and mistakes (hubris). However, the mechanisms through which mergers destroy value are rarely addressed. Aside from that, the possibility of simultaneous creation and destruction of value in acquisitions is not often considered. Finally, after several decades of investigation, a key question is not completely answered yet: “What are the sources of value in mergers and acquisitions?”

Details

Studies in Economics and Finance, vol. 33 no. 1
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 1 October 2009

Gi-Yong Koo

Sports organisations must continuously assess how better to meet or exceed consumer expectations and perceptions of their experience in order to maintain and increase the…

Abstract

Sports organisations must continuously assess how better to meet or exceed consumer expectations and perceptions of their experience in order to maintain and increase the number of spectators and loyal fans attending their sporting events. This study aims to enhance our understanding of which characteristics of a service attribute will best define its quality and impact on spectator behaviour by understanding the causal relationship between perceived service quality (PSQ) and satisfaction.

Details

International Journal of Sports Marketing and Sponsorship, vol. 11 no. 1
Type: Research Article
ISSN: 1464-6668

Keywords

Article
Publication date: 1 February 2000

Richard Friedrich

This bibliography contains references to papers, conference proceedings, theses and books dealing with finite strip, finite prism and finite layer analysis of structures…

1185

Abstract

This bibliography contains references to papers, conference proceedings, theses and books dealing with finite strip, finite prism and finite layer analysis of structures, materially and/or geometrically linear or non‐linear.

Details

Engineering Computations, vol. 17 no. 1
Type: Research Article
ISSN: 0264-4401

Keywords

Article
Publication date: 6 November 2017

Fan Yang, Kirsten Urban, Martina Brockmeier, Eddy Bekkers and Joseph Francois

The purpose of this paper is to develop a modelling approach that enables the analysis of long-term food security policies. Specifically, the authors explore the effect of…

1901

Abstract

Purpose

The purpose of this paper is to develop a modelling approach that enables the analysis of long-term food security policies. Specifically, the authors explore the effect of China’s agricultural domestic support on its agricultural and food market by also considering the impact of incomplete price transmission.

Design/methodology/approach

The authors extend the standard Global Trade Analysis Project (GTAP) modelling framework. First, the authors incorporate incomplete price transmission into the GTAP model by generating tariff-equivalent price transmission elasticities. Second, the authors improve the current representation of China’s agricultural domestic support in the GTAP model and the underlying database by considering the production requirements and the trade-distorting effect of different policy instruments. Running a set of simulations, the authors examine first how the incorporation of incomplete price transmission affects the model’s results and second how increased agricultural domestic support affects China’s agricultural and food market accounting for incomplete price transmission.

Findings

Considering incomplete price transmission mitigates the domestic price increases as responses to high international agricultural prices, which also lead to an increase in China’s trade deficit and prohibits net food sellers from receiving high prices. In the long term, an increase in China’s agricultural domestic support to its World Trade Organisation de minimis commitment level would increase domestic agricultural production and reduce its demand pressure on the international market.

Originality/value

This paper contributes to the literature by examining the impact of increased agricultural domestic support on the domestic market while innovatively accounting for incomplete food price transmission. The authors combine econometric estimated price transmission elasticities and an extended GTAP framework to underscore the importance of enhancing the model’s ability in accounting for incomplete price transmission when analysing the impact of agricultural policies.

Details

China Agricultural Economic Review, vol. 9 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Content available
Book part
Publication date: 5 October 2017

Abstract

Details

Custard, Culverts and Cake
Type: Book
ISBN: 978-1-78743-285-7

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