Search results

The political influence on the determinants of capital structure has been under-researched for a long time. Taking the turnover of secretary of municipal committee as a political factor in China, this paper studies the effect of local government officials' turnover on firm's capital structure.

Starting with all A-shares listed firms in the Shanghai and Shenzhen Stock Exchanges from 2001 to 2018, this paper implements the OLS estimation, staggered difference-in-difference approach to investigate the effects of political turnover on the choice of capital structure.

The results show that, driven by government officials' turnover, firms will significantly reduce their leverage. When comparing between formal finance (bank loans) and informal finance (payables), the reduction of capital structure is mainly driven by banks, not by suppliers. Furthermore, two possible channels have been investigated. First, the reduction effects are mainly driven by the SOEs when classifying the types of corporate ownership into SOEs and non-SOEs. Second, the reduction effects exist in areas with the more intense government intervention when considering the heterogeneity of the development of institutional environment in provinces.

This paper first contributes to the literature on the determinants of corporate choice on capital structure. Second, this paper enriches the studies on the economic consequences of local government officials' turnover.

This study provides empirical support for the cultural economics model between executive team and firm performance and offers important implications for policy selection and appointment of managers in China.

From the perspective of relationship embeddedness, the authors explore the impact of management geographical proximity (GP) on stock price crash risk in China. Using archival data from China's unique dataset about birthplace culture, the authors find that management GP experiences a large increase in corporate stock price crash risk for the period 2009–2018.

The impact of management GP on stock price crash risk is more pronounced when the company is located in areas with weaker formal legal environment and stronger Confucian culture. Furthermore, the impact has a significant links with firm characteristics such as information transparency, over-investment and tax aggressiveness.

First, the research extends the literature on the empirical determinants of stock price crash risk. These studies focus on formal institution, not on informal institution, such as relational culture. Second, the research provides evidence for economic consequences on relational governance from executive birthplace culture to explore the economic consequences of geographical relational governance but takes stock price crash risk to present executives' behavior strategies and market reaction via exploring asymmetrical variation of market stock price. Finally, the paper provides reference to corporate governance arrangement and executive appointment.

The purpose of this paper is first, to overview the current research situation on job embeddedness (JE), including the theoretical underpinning of JE, the definition and dimensions of JE, its comparisons with similar constructs, and its global and composite measure; second, to intergrate the unfolding model, JE and image theory to better understand voluntary turnover – and indicate future research directions.

An extensive literature search covering several separate electronic databases, including ScienceDirect, EBSCO, Kluwer and Emerald, was conducted. Most of the articles can be acquired online from The University of California Riverside. The validity and reliability are compared between global and composite scales. The authors summarized and categorized the findings of current research.

JE can be differentiated from those similar constructs and measures already in the literature. Almost all of the studies on JE have found that it predicted voluntary turnover better than job attitudes and perceived ease of movement from traditional models of turnover. Along with extended research on it, JE was disaggregated into two major sub‐dimensions, namely, on‐the‐job and off‐the‐job embeddedness, and it has been extended to occupational and career level.

In this paper, the authors use qualitative methods to evaluate the current studies on JE, only. Meta‐analysis, as a reviewing method, should be used in future research on clarifying the relationships between JE and other constructs in organizational behavior.

This research reviews almost all of the studies on JE from 2001 to 2009 and organizes and categorizes them into three kinds: cause, consequence and theoretical extension. The authors also summarize its relationships with other constructs (e.g. turnover, turnover intention, organizational commitment, organizational citizenship behavior) in various settings. Finally, based on discussion, the authors indicate future research directions.