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Case study
Publication date: 1 January 2016

Tang Yuejun

The widespread family businesses play an important role in the national economy of developed countries in Europe and North America, or of developing countries in East…

Abstract

The widespread family businesses play an important role in the national economy of developed countries in Europe and North America, or of developing countries in East Asia. However, family business succession is a worldwide difficult problem. The innovative family business succession practices of Robert Bosch GmbH, the German family company which has a history of 130 years (1886-2016), basically follow the trend of evolving from family businesses to social enterprises after further socialization. However, it has its own innovation and uniqueness which is worthy of reference by Chinese family businesses.

Details

Management School, Fudan University, vol. no.
Type: Case Study
ISSN: 2632-7635
Published by: Management School, Fudan University

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Case study
Publication date: 1 January 2018

Tang Yuejun and Ren Bing

In the context of the Chinese market and legal environment, Sun Dawu, the founder of Hebei Dawu Agriculture and Livestock Group Co., Ltd., put forward a new family…

Abstract

In the context of the Chinese market and legal environment, Sun Dawu, the founder of Hebei Dawu Agriculture and Livestock Group Co., Ltd., put forward a new family business development system, namely ““Private Enterprise Constitutional Monarchy” (hereinafter, Private Enterprise Constitution, in short PEC)”. The PEC separates and parallelizes three rights: the ownership right, the decision-making right and the execution right, and establishes board of supervisors, board of directors, and the council. The three committees coordinate with each other through restraining rights and ensuring rights to fulfill developmental goals, particularly, through a joint meeting of the three committee leaders. Starting from Sun Dawu's entrepreneurial experience, this case explores the significance of this system to the Sun family, and compares it with the governance model of German family business.

Details

Management School, Fudan University, vol. no.
Type: Case Study
ISSN: 2632-7635
Published by: Management School, Fudan University

Keywords

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Article
Publication date: 1 July 2011

Tang Yuejun

The purpose of this paper is to empirically analyze the impacts of motivation for avoiding loss and actual abnormal audit fees on management behaviors of audit opinion shopping.

Abstract

Purpose

The purpose of this paper is to empirically analyze the impacts of motivation for avoiding loss and actual abnormal audit fees on management behaviors of audit opinion shopping.

Design/methodology/approach

Using empirical research methods, this study employs regressive models and moderating effect models with data from Chinese listed companies from 2001 to 2008.

Findings

By analyzing the empirical data, it is found that strong motivation for avoiding loss has a certain moderating effect on the relationship between abnormal audit fees and audit opinion shopping; abnormal descent of audit fees significantly increases both the likelihood of receiving modified audit opinions of annual financial reports and that of the improvement of audit opinions; listed companies reporting consecutive losses in the last two years have a higher likelihood of an improvement in unfavorable audit opinions because of stronger motivation for avoiding loss and audit opinion shopping of management; and strong motivation for avoiding loss has a significant moderating effect on the relationship between abnormal increase of audit fees and audit opinion shopping.

Practical implications

This study has a significant practical implication for market supervisors, small and medium investors.

Originality/value

The paper classifies abnormal audit fees into abnormal increase and descent of audit fees, and audit opinions differences into the improvement and deterioration of audit opinions, and further empirically analyzes and verifies the moderating effect of motivation for avoiding loss on the relationship between abnormal audit fees and audit opinion shopping.

Details

China Finance Review International, vol. 1 no. 3
Type: Research Article
ISSN: 2044-1398

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Article
Publication date: 30 June 2020

Runhui Lin, Fei Li and Adedigba Olawoyin

Overconfidence as an important psychological factor can also affect CEO’s cognitive preferences, while there are few studies about the impact of CEO’ overconfidence on the…

Abstract

Purpose

Overconfidence as an important psychological factor can also affect CEO’s cognitive preferences, while there are few studies about the impact of CEO’ overconfidence on the international expansion of companies. This paper aims to fill this gap and further discuss the moderating role of CEO’s overseas experience, CEO duality and ownership.

Design/methodology/approach

The authors focus on the Chinese context, collect 2008–2016 data from China's manufacturing industry as sample, use fixed effect model to analyse the effect of CEO overconfidence on international expansion strategy of Chinese firms.

Findings

The empirical results show that: CEO overconfidence positively promotes the degree of firm internationalization. CEO foreign experience positively affects the internationalization degree, but can restrain overconfidence thus negatively regulate this impact relationship. When duality is present, both CEO power and managerial discretion are pronounced and they exhibit a stronger effect. Firm’s equity nature will affect the relationship between CEOs' overconfidence and the degree of internationalization. Compared with private enterprises, CEOs in state-owned enterprises have limited power, therefore, this influence relationship is weaker.

Originality/value

This study has emphasized the importance of top executives' psychological characteristics on firm internationalization, which is key application and complement of upper echelons theory and fills the research gap in the literature. In this paper, the authors found the advantages of overconfidence for firms, which helps to understand the complex meaning of overconfidence. The results of moderating effect further explore the application of overconfidence in different context, which has some implications for management practice.

Details

Nankai Business Review International, vol. 11 no. 4
Type: Research Article
ISSN: 2040-8749

Keywords

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