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Article
Publication date: 26 May 2021

Li Gao, Jinnan Song, Jiajuan Liang and Jianxiao Guo

This paper aims to explore the influence of founder shareholders’ resources on the allocation of control rights from the perspective of incomplete contract theory and…

540

Abstract

Purpose

This paper aims to explore the influence of founder shareholders’ resources on the allocation of control rights from the perspective of incomplete contract theory and resource-based theory.

Design/methodology/approach

This paper analyzes newspaper materials with NVivo11on a case of battle for corporate control in Chinese top-listed company-Vanke Group.

Findings

The research shows that human capital is the key resource and the holding proportion of financial resources directly affects the allocation of control rights. At the same time, social capital is unstable and easily broken. At last, institutional environment also affects the degree between the relationship of founder shareholders’ resources and the allocation of control rights. The influence of founder-shareholder resources on the allocation of control rights follows the path of “crisis – founder-shareholder’s resources – founder’s ability - allocation of control rights.”

Research limitations/implications

This study only selects the financial capital, human capital and social capital of Shi Wang, the founder of Vanke, as the analysis object. The study can expand the types of founder shareholder resources to verify and enrich the conclusions.

Originality/value

The current theoretical research in the literature focuses on the necessity of equity and shareholder’s resources versus the control rights. Some key factors and mechanism on the relationship have not been fully clarified. The results of this paper not only extend the combination research of social network and corporate governance, but also provide enterprise founders with references for making reasonable decisions during control battle.

Details

Chinese Management Studies, vol. 16 no. 2
Type: Research Article
ISSN: 1750-614X

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Article
Publication date: 5 September 2021

Li Gao, Jinnan Song, Jianxiao Guo and Jiajuan Liang

Share pledge is a popular way to raise funds in China, but it aggravates information asymmetry. As an indispensable information intermediary in the financial market, media…

731

Abstract

Purpose

Share pledge is a popular way to raise funds in China, but it aggravates information asymmetry. As an indispensable information intermediary in the financial market, media coverage affects asset price and pricing efficiency and impacts information asymmetry. This study aims to explore the governance role of media coverage as an information intermediary in the share pledge context in China.

Design/methodology/approach

Moderating effect and mediating effect analyses are the primary methods used to test the governance role of media coverage. The ordinary least squares model was used to test the relationship between share pledge and market performance and then proved the moderating effect of media coverage toward the corporate market value of pledge firms. Accounting earnings value relevance models were explored to test the path of media coverage on firm market value by mediating effect analysis. At last, subgroup tests were used to verify the heterogeneity of the moderating effect of media coverage.

Findings

In the context of share pledge in China, the higher the share pledge ratio, the higher is the market value of listed firms, which verifies the motivation of controlling shareholders to avoid the transfer of control right and the motivation to tunneling. Media coverage has a significant negative moderating effect on the relationship between share pledge rate and corporate value and has a significant impact on the accounting earnings value relevance of share pledge firms. From the perspective of long-term earnings, media coverage reduces the market performance of share pledge firms by reducing the value correlation of accounting earnings information. From the short-term price point of view, media coverage reduces the market performance of share pledge firms by improving the value correlation of accounting earnings information. Furthermore, media coverage has a more significant moderating effect in state-owned share pledge firms and low information transparency and low information disclosure quality firms.

Research limitations/implications

This paper does not distinguish the mode difference of spreading news and the impact of non-pledge media coverage. Also, this paper does not consider factors other than accounting information value relevance when exploring how media coverage affects the corporate market value. Share pledge firms should use media for publicity and play a role in media governance and should actively improve their information disclosure quality, strengthen communication with investors and reduce information asymmetry fundamentally.

Practical implications

This paper diversify the governance choices for share pledge firms and has important implications for firms, investors, information intermediaries and regulators. Media reports play an increasingly important role today, and any reports and predictions of major events may profoundly affect investors’ decisions. Although media reports can make up for the weakness of accounting information disclosure of equity pledge companies in some sense, it is still not a long-term strategy. Equity pledge companies should not only make use of media for publicity and play a role of media governance but also actively improve their information disclosure quality.

Originality/value

This paper focuses on share pledge firms to carry out in-depth research. Based on exploring the influence mechanism of share pledges, the authors find the importance of media governance. This paper expands the literature about the economic consequences of share pledges and provides empirical data for media governance of share pledge firms. This paper innovatively proves the governance role of media coverage from the view of accounting information value relevance. The main innovation point is the long and short-term perspective analysis of the influence of media coverage on the correlation of accounting earnings value. The heterogeneity effect analysis of media coverage also reflects the depth and strong practical guiding significance of this study.

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Article
Publication date: 9 October 2023

Zhijie Yuan, Hao Wang, Rou Li, Jianxiao Mao and Hui Gao

This paper aims to investigate the equivalent relationship between accelerated corrosion tests and real environmental spectrum of suspenders in long-span suspension bridge…

139

Abstract

Purpose

This paper aims to investigate the equivalent relationship between accelerated corrosion tests and real environmental spectrum of suspenders in long-span suspension bridge considering multiple factors action.

Design/methodology/approach

Based on Faraday's law, corrosion current was used as a measure of metal corrosion, and the equivalent conversion relationship between laboratory environment and real service environment was established. The equivalent conversion method for bridge structural steel had been determined under different temperature, humidity, pH value and NaCl concentration conditions. The compilation of environmental spectra for large span bridges considering multiple factors and the principle of equivalent conversion have been proposed.

Findings

Environmental factors, including temperature, humidity, pH value and NaCl concentration, have significant impact on the corrosion degree of suspension steel wires, and only considering these two factors for equivalent conversion cannot accurately reflect the true service environment of the bridge. The 33.8-h salt spray accelerated corrosion test using the standard conditions can be equivalent to one year of suspenders corrosion in a real service environment.

Originality/value

The equivalent accelerated corrosion method for steel wires proposed in this study can effectively predict the corrosion degree of the suspenders, which has been verified to be correct and can provide theoretical guidance for the development of corrosion test plans for steel wires and engineering technical basis for anti-corrosion control and calendar life research of suspension bridge suspenders.

Details

Anti-Corrosion Methods and Materials, vol. 70 no. 6
Type: Research Article
ISSN: 0003-5599

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