Frontiers of Business Research in China

ISSN 1673-7326

ISSN 1673-7431(Online)

CN 11-5746/F

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, Volume 5 Issue 2

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Cognitive Discrepancy in Chinese “Face”: Mian and Lian, and their Impact on Cognition of Country-of-Origin Image
Zhuomin Shi, Furukawa Ichiro, Chunji Jin
Front Bus Res Chin. 2011, 5 (2): 163-178.  
https://doi.org/10.1007/s11782-011-0126-3

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Chinese “face,” as a complex social and psychological phenomenon, has attracted much attention from the fields of sociology and psychology. However, in the field of consumer behavior, research about how mianzi (face) affects consumer behavior is lacking. Moreover, research on the connotations of sub-dimension of mianzi (face), that is, lian and mian as well as their influences on consumer behavior is seldom seen. Based on the grounded theory, using focus group interviews and the self-report method, this study extracted scenario sentences of lian and mian, initially forming a preliminary scale with 14 positive items and 20 negative items concerning lian and mian. Moreover, by using close-ended questionnaire originated from previous grounded theory in terms of Chinese face, this study validated the discrepancy between “mian” and “lian.” Besides the discrepancy between “mian” and “lian” also appeared in consumer perception about product category and country-of-origin image.

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Ethical Leadership in Chinese Organizations: Developing a Scale
Xiaoming Zheng, Weichun Zhu, Haibo Yu, Xi Zhang, Lu Zhang
Front Bus Res Chin. 2011, 5 (2): 179-198.  
https://doi.org/10.1007/s11782-011-0127-2

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In light of a series of ethical scandals in China in recent years, this research aims to develop a reliable and valid scale to measure ethical leadership, namely the “ethical leadership measure (ELM).” Our results show that ELM is strongly and positively correlated with scales for authentic leadership, ethical leadership, idealized influence, and a recently-developed leadership virtues questionnaire (LVQ); and negatively correlated with laissez-faire leadership and passive management by exception. ELM is also found to be positively related to followers’ job satisfaction, affective commitment, trust in leader, organizational citizenship behavior, and moral identity, and negatively related to followers’ intention to quit.

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Work-to-Family Enrichment and Voice Behavior in China: The Role of Modernity
Haina Zhang, Xia Zhou, Ying Wang, Malcolm H. Cone
Front Bus Res Chin. 2011, 5 (2): 199-218.  
https://doi.org/10.1007/s11782-011-0128-1

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There is a lack of knowledge in the literature regarding the effects of the work–family interface on employees’ behaviors while taking into consideration of cultural values in developing countries. This study investigates the impact of work-to-family enrichment on employees’ voice behavior by focusing on the moderating role of modernity in a Chinese setting. Results from a survey of 230 Chinese married managers indicate that work-to-family enrichment positively influences voice behavior. In addition, the enrichment-voice relationship is weaker when modernity is high rather than low. The findings are discussed in terms of their theoretical and practical implications for human resource management.

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The Impact of Natural Disaster on Absenteeism, Job Satisfaction, and Job Performance of Survival Employees: An Empirical Study of the Survivors in Wenchuan Earthquake
Xin Qin, Yuexin Jiang
Front Bus Res Chin. 2011, 5 (2): 219-242.  
https://doi.org/10.1007/s11782-010-0129-0

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Natural disasters cause serious damage to businesses in the stricken areas and greatly affect survivors’ psychology and behaviors. Based on data from 206 survival employees in 33 affected firms in Wenchuan Earthquake, this study analyzes the impact of natural disaster on absenteeism, job satisfaction, and job performance of survival employees. Results indicate that after the earthquake, survival employees’ absenteeism and job satisfaction (including intrinsic, extrinsic, and general job satisfaction) decrease significantly, but their task performance, contextual performance, and overall job performance improve significantly. Employees’ learning and innovative performance have no significant change in comparison with that before the earthquake. The authors thus suggest that the affected businesses need to communicate with the survival employees actively, focus more on job security, compensation and working conditions, in order to maintain these employees’ job satisfaction. In addition, enterprises outside the affected areas should give priority to the recruitment of the survival employees given the same conditions, because it is beneficial to both the employing enterprises and the reconstruction of affected areas.

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Measuring Intellectual Capital and Its Effect on Financial Performance: Evidence from the Capital Market in Taiwan
Mushun Wang
Front Bus Res Chin. 2011, 5 (2): 243-265.  
https://doi.org/10.1007/s11782-011-0130-7

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This paper studies intellectual capital in companies in Taiwan, China. Intellectual capital is an invisible, yet important resource for companies. The first aim of this paper is to provide a systematic investigation on how to measure intellectual capital. Results show that the coefficient of value-added intellectual capital is positively related to return on assets and market capitalization in both fix and random effects. Similar results are also obtained with dynamic panel data. Furthermore, innovation variables such as research and development expenditure are more accurate than structural capital in measuring intellectual capital. The author thus suggests that companies need to keep a close track of their intellectual capital and focus on internal information delivery to gain competitive advantage.

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Evaluating the Effects of Equity Incentives Using PSM: Evidence from China
Yujun Lian, Zhi Su, Yuedong Gu
Front Bus Res Chin. 2011, 5 (2): 266-290.  
https://doi.org/10.1007/s11782-011-0131-6

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This paper investigates the effects of equity incentives on firm performance in Chinese listed firms. We address the sample selection problem by employing the propensity score matching methodology. Results show that, (1) On the whole, performance is positively related to equity incentives even after controlling for sample selection bias; (2) The final control rights have an important impact on the effects of equity incentives. The execution of equity incentives in privately owned firms can significantly decrease the agency costs between shareholders and managers, but such effects cannot be observed in state-owned firms; (3) Effects of equity incentives depend on the incentive type, that is, comparing to stock-based incentives, option-based incentives can reduce the agency costs significantly, thus are more effective; (4) Ownership structure also has important impacts on the effects of equity incentives. The agency costs decrease in firms with more decentralized ownership after introducing equity incentive, while in concentrated firms the effect is negligible.

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Product Market Competition, Board Structure, and Disclosure Quality
Minghui Teng, Changqing Li
Front Bus Res Chin. 2011, 5 (2): 291-316.  
https://doi.org/10.1007/s11782-011-0132-5

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This paper empirically investigates the mechanism through which product market competition (PMC) affects disclosure quality of listed companies. Based on a sample of listed companies with disclosure quality report from Shenzhen Stock Exchange during 2003–2008, PMC is found to display a U-shaped relationship with disclosure quality, which demonstrates the strategic effect of PMC on disclosure quality. PMC is also found to enhance the board of directors’ role in disclosure quality, which demonstrates the governance effect of PMC on disclosure quality. These results enhance the understanding of the role of PMC on disclosure.

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