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Shareholding Reform of State-Owned Enterprises
and Control
Jianping Deng, Yong Zeng, Jia He,
Front. Bus. Res. China. 2010, 4 (2): 185-208.
https://doi.org/10.1007/s11782-010-0009-Z
One of the most commonly used ways to restructure big and medium-sized state-owned enterprises (SOEs) in China is through shareholding reform. This article classifies the shareholding reform into four modes and explores the relationship among these modes, in terms of the degree of control over controlled listed companies and governance efficiency. Using data of 285 SOEs during 1997–2000 (three years after their IPO), we find that restructuring modes affect the degree of control by controlling shareholders over listed companies. Furthermore, the controlling shareholder of incompletely restructured enterprises prefers a higher degree of control. In addition, the higher the degree of control, the more serious the problems of related trading and tunneling behaviors. We also find that restructuring modes affect the governance structure of listed companies, which in turn affect the degree of related trading and tunneling behaviors. These findings reveal that incomplete restructuring of SOEs before their listing is likely to make these enterprises be vulnerable to external control and thus negatively affects their governance efficiency.
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Adverse Selection Costs: A Study on the Chinese
Stock Market
Chengying He , Zonghui Lu, Xingqiang He,
Front. Bus. Res. China. 2010, 4 (2): 209-230.
https://doi.org/10.1007/s11782-010-0010-6
Employing a bid-ask spread model applicable for order-driven market, this paper decomposes the bid-ask spread of Shanghai Stock Exchange (SSE) into adverse selection and order processing cost components to investigate the relationship between the components of bid-ask spread and order size. It examines the impacts of firm size, price, trading activeness, and volatility on adverse selection cost, and explores the intraday pattern of adverse selection costs and informative trading. Results show that adverse selection costs increase with trade scale. However, order processing costs do not exhibit the economies of scale. Stocks of large firms, which are high-priced and actively traded, have relatively low adverse selection costs; stocks with large volatility have relatively high adverse selection costs. Moreover, this paper finds that the adverse selection component of bid-ask spread in the Chinese stock market exhibits an L-shaped intraday pattern, which implies that heavy trading around market opening is dominated by informative trading, while heavy trading near market closing is dominated by liquidity trading.
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The Current State and Future Directions of Research
and Practice in Organizational Learning and Learning Organizations
in China
Guoquan Chen , Nan Ning, Huiqun Zhao, Lan Li,
Front. Bus. Res. China. 2010, 4 (2): 231-261.
https://doi.org/10.1007/s11782-010-0011-5
This article aims to analyze systematically academic papers concerning organizational learning and learning organizations in the China Academic Journals Full-text Database (CAJ) published after 2000. A detailed review was conducted of their main findings, publication time, research methods, subjects (themes), and source of funding to depict the current state of research on organizational learning and learning organizations in China on three different levels, namely organizational, team and individual levels of learning. Based on the comprehensive review of literature, this article proposes future directions for organizational learning research and practice in China. Suggestions are offered to advance further research and practice in China.
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Proactiveness, Legitimation via ISO Certification
and the Growth of SMEs in China
Yunzhou Du , Bing Ren , Yuli Zhang, Zhongwei Chen,
Front. Bus. Res. China. 2010, 4 (2): 283-305.
https://doi.org/10.1007/s11782-010-0013-3
According to the literature on entrepreneurial orientation (EO), proactive firms are more likely to achieve first-mover advantage and higher performance. The neoinstitutionalism, however, suggests that enterprises with more legitimacy will acquire more growth opportunities. Usually, the first mover might face more legitimacy obstacles. To date, there has been little research on how proactive firms cope with legitimacy constraints and achieve firm growth. Integrating the legitimacy perspective and the EO literature, this research examines the roles of ISO certification as a strategy for seeking legitimacy of small and medium-sized enterprises (SMEs) in emerging economies, and the relationship between proactiveness and firm performance. In particular, it hypothesizes that ISO certification has a mediating effect on the relationship between proactiveness and firm growth. We test the hypothesis using a sample of 632 firms collected from a nationwide survey on SMEs conducted by the Chinese SME Association. The results reveal that ISO certification partially mediates the relationship between proactiveness and firm growth, suggesting that proactive firms tend to use legitimation via ISO certification to enhance firm growth. Our paper contributes to the literature by shedding light on the important relationship between seeking legitimacy, entrepreneurial orientation and firm growth in SMEs in an emerging economy.
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8 articles
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