With specific big-data mining worked on 61,522 firm announcements, we discovered a diverse Employee Share Ownership Plan (ESOP) model in China, called “Core-Staff-Based ESOPs.”…
Abstract
Purpose
With specific big-data mining worked on 61,522 firm announcements, we discovered a diverse Employee Share Ownership Plan (ESOP) model in China, called “Core-Staff-Based ESOPs.” Distinct from standard broad-based or executive-based ESOPs, these specific targeted-broad-based ESOPs require the qualification for participants, involving the participation of senior executives, directors at the middle level and any other employees that make particular contributions to firms. We take on the challenge to analyze ESOP mechanism, firm characteristics and performance in the view of organizational ecology and resource-based choice-making, and explore which factors have influenced the ESOP development in China.
Design/methodology/approach
We utilize a combination of approaches including qualitative and quantitative methods, and construct the main database of 117,767 firm-quarter data.
Findings
Firstly, based upon our institutional research, we find no coercive mechanisms that force all the Chinese listed firms to implement ESOPs since 2005. Secondly, our binary logistic regressions identify ESOP firms’ specific properties significantly distinct from non-ESOP firms, and draw profiles for these ESOP firms. Thirdly, our panel regression test results sustain the rational of ESOP mechanism, demonstrating that ESOPs enable Chinese firms to improve performance both in profits and their industry positions. Finally, with further quantitative tests, we find out this ESOP design’s limitations and the heterogenous effects due to China’s environments.
Originality/value
The discovery of Core-staff-based ESOPs contributes a diversity to the standard framework of ESOPs, enhances our understanding of China’s ESOP development, and provides new evidence for ESOP performance.
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Agyenim Boateng, Huifen Cai, Daniel Borgia, Xiao Gang Bi and Franklin Nnaemeka Ngwu
The purpose of this paper is to examine the effects of internal corporate governance mechanisms on the capital structure decisions of Chinese-listed firms.
Abstract
Purpose
The purpose of this paper is to examine the effects of internal corporate governance mechanisms on the capital structure decisions of Chinese-listed firms.
Design/methodology/approach
Using a large and more recent data set consisting of 2,386 Chinese-listed firms over the period from 1998 to 2012, the authors use different statistical methods (OLS, fixed effects and system GMM) to analyse the effects of firm-specific and corporate governance influences on capital structure.
Findings
The authors find that the proportion of independent directors and ownership concentration exert significant influence on the level of Chinese long-term debt ratios after controlling for firm-specific determinants and split share reforms. Further analysis separating the sample of this paper into state-owned enterprises (SOEs) and privately owned enterprises (POEs) suggests that ownership concentration in the hands of the state leads to decrease in debt ratios.
Research limitations/implications
The finding implies that concentrated ownership in the hands of the state appears more efficient compared to their private counterparts in their monitoring role.
Originality/value
This paper extends prior literature, which has concentrated disproportionately on firm-specific influences on capital structure, to the effects of within-firm governance mechanisms on capital structure decisions. The paper contributes to the agency theory–capital structure discourse in an emerging country context where corporate governance system appears weak.
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Yuanyuan Lai, Huifen Sun and Jifan Ren
Based on previous literature on big data analytics (BDA) and supply chain (SC) management, the purpose of this paper is to address the factors determining firms’ intention to…
Abstract
Purpose
Based on previous literature on big data analytics (BDA) and supply chain (SC) management, the purpose of this paper is to address the factors determining firms’ intention to adopt BDA in their daily operations. Specifically, this study classifies potential factors into four categories: technological, organizational, environmental factors, and SC characteristics.
Design/methodology/approach
Drawing on the innovation diffusion theory, a model consisted of direct technological and organizational factors as well as moderators was proposed. Subsequently, survey data was collected from 210 organizations. Then we used SPSS and SmartPLS to analyze the collected data.
Findings
The empirical results revealed that perceived benefits and top management support can significantly influence the adoption intention. And environmental factors, such as competitors’ adoption, government policy, and SC connectivity, can significantly moderate the direct relationships between driving factors and the adoption intention.
Research limitations/implications
Given the fact that big data (BD) usage in logistics and SC management is still in the start-up stage, the interpretations toward BDA might vary from different perspectives, thus causing some ambiguity in understanding the meaning and potential BD has. In addition, we collected data through questionnaires completed by IT managers, whose viewpoint may not fully represent that of an organization.
Practical implications
This paper tests the organizational adoption intention of BDA and extends the literature streams of BD and SC management simultaneously.
Social implications
This research helps top managers assess the benefits of BDA as well as how to adjust their business strategy along the changes of environment and SC maturity.
Originality/value
This paper contributes to the literature of organizational adoption intention of BDA and extends the literature streams of BD and SC management simultaneously.
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The retail sector is one of the fastest growing sectors in India. Increase in per capita income, growing urbanization, and economic reforms are some key factors that have…
Abstract
The retail sector is one of the fastest growing sectors in India. Increase in per capita income, growing urbanization, and economic reforms are some key factors that have propelled its growth. The growing Indian market has attracted many foreign retailers and Indian corporates to invest in this sector. However, this is one of the few sectors in which there is a restriction on foreign direct investment. The sector is politically sensitive, and the Indian government is trying to formulate an appropriate policy regime.
In this context, based on a primary survey, this chapter tries to analyze what should be the right policy regime that will help to sustain the growth of retail in India. The chapter shows that due to the quasi-federal nature of governance, the retail sector is regulated by a large number of ministries/departments at the centre state and local level, which leads to multiple regulations and the requirement of multiple clearances. The laws relating to this sector are outdated and their definitions and enforcement varies across different states of India. Lack of supporting infrastructure, high real estate costs and low purchasing power of consumers are some other barriers. To sustain the growth of this sector, there is an urgent need for regulatory, fiscal, and other reforms. Precisely, the clearances process needs to be streamlined and outdated regulations should be amended. To encourage investment in the supply chain and inflow of technical know-how and skills the government should allow FDI in multibrand retail. However, since retail is a sensitive sector, India cannot take an international commitment on liberalization of retail before streamlining the domestic policy regime.
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China represents around 20% of the world's population, and her economy is still performing well under economic crisis. Historical events have shaped different parts of China with…
Abstract
China represents around 20% of the world's population, and her economy is still performing well under economic crisis. Historical events have shaped different parts of China with different economic developments and cultural encounters. The most prominent difference is between Hong Kong and the Mainland. This chapter would like to examine the development and issues of fashion retailing in China. For better understanding, this chapter starts with a brief discussion on apparel industry development and fashion culture in Hong Kong and the Mainland, follows by historical development and then presents systems of fashion retailing in both Hong Kong and the Mainland. Desktop research and exploratory research techniques were employed. Stores of international fashion luxury brands in Hong Kong, Shanghai and Beijing were visited. Comparison of branding issues, particularly for luxury market in Hong Kong and the Mainland are discussed, so are future directions of fashion retailing in these places.
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Justin Paul, Jane Menzies, Ambika Zutshi and Huifen Cai
This paper aims to identify and discuss new and novel business paradigms in China and India. In addition, this study examines the new business environment in those countries (2020…
Abstract
Purpose
This paper aims to identify and discuss new and novel business paradigms in China and India. In addition, this study examines the new business environment in those countries (2020 onwards) in the context of COVID 19 and explores the challenges and opportunities in the post COVID period.
Design/methodology/approach
Based on content analysis, this study discusses contemporary topics such as innovation, exports, foreign direct investment, technology, social capital, board independence as part of corporate governance and explores novel themes such as consumer behaviour in regard to luxury brands and women entrepreneurship in an emerging country context in this paper.
Findings
It was found that there are several novel paradigms in the context of China and India. A paradigm shift in diplomatic relations has taken place as an aftermath of COVID-19 in the world.
Originality/value
This paper explores most of the unique dimensions of new and novel paradigms in the context of China and India.