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The purpose of this paper is to study the slime mould Physarum polycephalum

The paper proceeds by representing major urban areas of China by oat flakes, inoculating the slime mould in Beijing, waiting till the slime mould colonises all urban areas, or colonises some and cease further propagation, and analysing the protoplasmic networks formed and comparing with man-made motorway network and planar proximity graphs. Findings

Laboratory experiments found that P. polycephalum

The paper demonstrated the strong component of transport system built by slime mould of P. polycephalum

The findings suggest that reducing information processing costs as a result of better transportation is an important ingredient in promoting the pricing of firm-specific information. This study aims to discuss the aforementioned issue.

The authors adopt a difference-in-difference (DID) research design to examine the impact of information processing costs on stock price synchronicity with a sample of firms listed in the Chinese A-share market during 2007 and 2017.

This paper shows that the launch of the high-speed railway (hereafter HSR) in China is associated with lower stock price synchronicity, consistent with the theory that the HSR reduces investors’ information processing costs (cost of monitoring, acquiring and analyzing firm disclosures). This effect is more pronounced for companies located in remote areas than for those located in large cities. Further tests show that the negative association between the launch of HSR and stock price synchronicity is stronger for companies with higher information asymmetries, proxied by higher equity concentration, higher complexity and lower internal control quality.

This study contributes to the literature in the following three ways. First, prior literature relates the effects of geographic distance to information transmission and information asymmetry between insiders and outside investors (e.g. Coval and Moskowitz, 2001; Kang and Kim, 2008; Malloy, 2005). The authors supplement the literature by providing new empirical evidence from an exogenous shock (natural experiment), that is, the launch of HSR, that facilitates transportation and reduces information transmission costs. Second, prior studies have shown that new airline routes that facilitate transportation improve investment and productivity (e.g. Bernstein et al., 2016; Giroud, 2013). The authors extend this stream of studies by showing that the development of HSR networks reduces information processing costs, and promotes the incorporation of firm-specific information in the asset pricing. More importantly, in this study, the authors explicitly incorporate disclosure processing costs theory into our framework thus enhancing our understanding of how and why improvements in transport relate to better market outcomes.

Close relationship with major customers, by curtailing opportunistic behaviors during private placements (PPs) and guaranteeing the production and sales of products after, is expected to facilitate the realization of PP’s strategic goals. However, major customers, on the contrary, may impair PP’s performance because of their strong bargaining power. Based on the transaction cost theory and relational contract theory, this paper aims to investigate the impact of major customers on firms’ strategic development in the context of private placements. The mechanisms of such impact are analyzed from the prospect of economies of scale, supervision and the rip-off effect by major customers. Further, the moderating role of the customer relationship investment (CRI) is considered.

Using a sample of China’s non-financial A-share listed firms during 2010-2016, this paper empirically investigates the impact of customer relationships on firms’ operating performance following PPs. In the main regressions, the sales growth rate serves as the dependent variable to measure PP’s operating performance, while the customer concentration proxies for the closeness of customer relationship. This study captures the impact of customer relationships on PPs’ performance by looking at the coefficient of the interaction term of post PP dummy and customer concentration. In the additional tests, selling and management expenses along with entertainment and traveling expenditures are used to measure customer relationship investment.

Results show that major customers help improve PPs’ strategic performance. The more concentrated the customer portfolio is, the higher operating performance will be after the PPs. Such a relationship is stronger when CRI is at a higher level. However, CRI also incurs costs, which impairs the effect of major customers on net profit. Further research finds that the effect of major customers is more pronounced in situations of extensional PPs, with actively interactive customers and in non-state-owned firms. In addition, state-owned customers with strong bargaining power have impaired the role of customers in promoting PP’s operating performance.

This paper validates the role of customers in firms’ strategic development. The study not only contributes to the research on the economic consequences of customers but also adds to the evolving literature of factors affecting the performance of PPs. The findings of the study have important practical implications for both customer relationship management and the supervision of PPs.

This paper aims to study the effect of the establishment of bankruptcy courts on bond issuance market. This paper helps to predict that the introduction of bankruptcy courts in China can mitigate price distortions caused by the implicit government guarantees and promote the development of the high-risk bond market.

This paper exploits the staggered introduction of bankruptcy courts across cities to implement a differences-in-differences strategy on bond issuance data. Using bonds issued in China between 2018 and 2020, the impact of bankruptcy courts on the bond issuance market can be analyzed.

This paper reveals that bond issuance credit spreads increase and is more sensitive to firm size, profitability and downside risk of issuance entity after the introduction of bankruptcy courts. It also reveals a substantive increase in bond issuance quantity and a decrease in issuer credit ratings following the establishment of bankruptcy courts. In addition, the increase of credit spreads is more prominent for publicly traded bonds, those whose issuers located in provinces with lower judicial confidence, bonds issued by SOEs and bonds with stronger government guarantees. Finally, the role of bankruptcy courts is more pronounced in regions with higher marketization.

This paper relates to previous studies that investigate the impact of laws and institutions on external financing. It helps provide new evidence to this literature on how improvements of efficiency and quality in bankruptcy enforcements relate to the marketization of bond issuance. The results provide further evidence on legal institutions and bond financing.

This paper aims to study the Gramian solutions and solitonic interactions of a (2 + 1)-dimensional Broer–Kaup–Kupershmidt (BKK) system, which models the nonlinear and dispersive long gravity waves traveling along two horizontal directions in the shallow water of uniform depth.

Pfaffian technique is used to construct the Gramian solutions of the (2 + 1)-dimensional BKK system. Asymptotic analysis is applied on the two-soliton solutions to study the interaction properties.

N-soliton solutions in the Gramian with a real function ζ(y) of the (2 + 1)-dimensional BKK system are constructed and proved, where N is a positive integer and y is the scaled space variable. Conditions of elastic and inelastic interactions between the two solitons are revealed asymptotically. For the three and four solitons, elastic, inelastic interactions and soliton resonances are discussed graphically. Effect of the wave numbers, initial phases and ζ(y) on the solitonic interactions is also studied.

Shallow water waves are studied for the applications in environmental engineering and hydraulic engineering. This paper studies the shallow water waves through the Gramian solutions of a (2 + 1)-dimensional BKK system and provides some phenomena that have not been studied.

Considering the randomness of physical parameters of structural material, dynamic characteristic topology optimization mathematical model based on reliability of planar continuum structures is built in this paper. In which topology information variables of the structure are taken as design variables, minimizing the mean value of total structural weight as objective function and satisfying the reliability requirement of structural dynamic characteristic as constraints. In the process of optimization, the ESO method based on probability is adopted as solution strategy. At the same time, distribution function method is utilized to convert the reliability constraints into conventional constraints formally. A square thin plate with four sides fixed is used as an example to demonstrate the rationality and validity of the presented model.

The purpose of this paper is to examine whether the political connections of listed firms in China affect how the market reacts to cases of financial misrepresentation investigated by the regulatory authorities.

The authors use an event study method and the financial misrepresentation events in China stock markets as research setting and empirically test the association between market reactions to the announcement of financial misrepresentations and the presence of political connections.

The results show that on average, there is no significant market reaction to financial misrepresentation for politically connected firms. In contrast, however, there is a significantly negative market reaction for non-connected firms, which suggests that investors do not punish politically connected firms for financial misrepresentation. The authors argue that politically connected companies use the altered financial information to gain legitimacy and obtain benefits from the government. Consistent with the argument, the authors find that in the years after they disclose their financial misrepresentation, firms with political connections are more likely to increase their bank loans than firms without political connections.

The authors provide a new explanation for the low-earnings quality of politically connected firms.

Cause-related marketing (CRM) is an increasing popular marketing strategy in which a firm donates a specific amount to a designed cause when customers engage in revenue-providing exchanges. Based on balance and attribution theory, this paper aims to explore the interaction effect of donation amount and ad orientation, two important factors of formulation and communication of CRM, respectively, on consumer response and the mediating effect of consumers’ perceived company motives.

Two 2 (donation amount: small vs large) × 2 (ad orientation: product- vs cause-oriented) between-subjects experimental studies were conducted in marketing course with 284 and 157 Chinese undergraduate students participating in Studies 1 and 2, respectively. ANOVA and regression were used to test the hypotheses.

Study 1 shows the significant interaction effects of donation amount and ad orientation on consumers’ response. When CRM has a large donation amount, cause-oriented (vs product-oriented) ad leads to consumers’ more positive company attitude and higher purchase intention. The opposite is true for the small donation amount condition. Study 2 shows that the above interaction effect is mediated by consumer-attributed company motives. The attributed motive of sincerely caring about social cause has significant positive effect on consumer response, whereas the attributed motive of increasing sales or improving corporate image does not.

This paper contributes to the literature by empirically examining the interaction effect of donation amount and ad orientation on consumer-inferred motives and behavioral response. The findings are valuable because they indicate the importance of matching between factors at formulation and communication stage. In addition, this paper found that consumers are “tolerant” of companies using CRM to promote product sales and improve brand image.

Recent legislation in Europe and North America encourages women’s participation in corporate boards based on the belief that gender-diversified boards contribute positively to firm performance and increased competitiveness. Contrary to the West, the women’s participation rate in business has been traditionally high in China. The purpose of this paper is to find out whether gender-diverse corporate boards of Chinese automotive firms perform better financially than gender-homogeneous boards.

By drawing on data from the Chinese Government and Bloomberg, the authors compare and analyze the differences in financial performance (return on equity, asset growth, sales growth) and risk behavior (debt risk, R&D expenditure) of Chinese automotive firms with and without women on their corporate board.

There is significant evidence that firms with women on the board perform better across all three categories, with the exception of return on equity, for which they found no significant differences among the analyzed firms.

While women’s participation in corporate boards in China is low, the results of this study suggest to policy makers and firms alike to implement measures that support gender-diversified boards in order to take advantage of their potential to increase corporate performance.

So far, the performance of corporate boards of countries with a traditionally high share of female participation in the workforce has rarely been analyzed. Research focusing on the Chinese automotive industry is new and underrepresented, although China is the largest automotive market worldwide and a key industry of the domestic economy. This investigation contributes to the literature stream on board diversity in as well as to industry-related studies. With the example of the Chinese automotive industry, it provides empirical evidence of better performance of firms with gender-diversified boards within the categories tested.