Frederick Davis, Thomas Walker and Linyi Zhou
Within the context of mergers and acquisitions, the purpose of this paper is to clarify the relationship between the deal initiator and various outcomes of the deal, particularly…
Abstract
Purpose
Within the context of mergers and acquisitions, the purpose of this paper is to clarify the relationship between the deal initiator and various outcomes of the deal, particularly in consideration of the cash position of the acquiring firm.
Design/methodology/approach
Using hand-collected deal initiation data from various filings on the Securities Exchange Commission EDGAR online database, this paper performs a series of event study analyses, multivariate analyses, a Heckman two-step estimation procedure, and an instrumental variable approach to examine merger outcomes.
Findings
This paper finds that many merger and acquisition (M&A) outcomes (target and acquirer announcement returns, acquirer long-run returns, premiums, and the method of payment) are significantly related to deal initiation, particularly in consideration of the cash position of the acquiring firm. Overall, evidence is seen as consistent with the theory that “lemons” selectively approach cash-rich acquirers, often to the acquirers’ detriment.
Originality/value
This paper finds that target-initiated deals are not necessarily associated with poorer transaction outcomes for targets as contemporaneous studies suggest, and presents the first empirical evidence of M&A outcomes related to the deal initiator which are dependent on the cash position of the acquiring firm.
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Linyi Li, Lulu Xia, Menglei Liu and Yunzhi Ling
Strategic Management, Entrepreneurship, Business Management.
Abstract
Subject area
Strategic Management, Entrepreneurship, Business Management.
Study level/applicability
This case is of medium level of difficulty and is designed for students in School of Economics and Business Management, also an optional course for students in other majors who have strong interest in strategic management and entrepreneurship. Students from all disciplines are welcomed and encouraged to take this course; however, it will be better if registered students have already gained basic ideas about industry, company analysis and marketing.
Case overview
In 2010, Hangzhou Wahaha Group (The Group), a leading Chinese beverage company launched its new brand – Edison milk powder. Meanwhile, people were concerned about food security because of several scandals and Wahaha had to convince the mass public during the high time. The decision makers had to balance various options besides Edison. In this case, we would mainly discuss several possible long–term strategies of this eye–catching private enterprise. The Group intended to carry out diversification strategy in several industries domestically and internationally to maximize its profit.
Expected learning outcomes
Have an insight into China's beverage industry and dairy sector, with the representative Hangzhou Wahaha Group., Know how to develop analytical and decision skills facing multi–choices. SWOT model is recommended here., Have a comprehensive understanding of diversification strategy and how to make priorities.
Supplementary materials
Teaching notes.
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Shumei Lou, Guoqun Zhao and Rui Wang
The paper aims to use the finite volume method widely used in computational fluid dynamics to avoid the serious remeshing and mesh distortion during aluminium profile extrusion…
Abstract
Purpose
The paper aims to use the finite volume method widely used in computational fluid dynamics to avoid the serious remeshing and mesh distortion during aluminium profile extrusion processes simulation when using the finite element method. Block-structured grids are used to fit the complex domain of the extrusion. A finite volume method (FVM) model for aluminium extrusion numerical simulation using non-orthogonal structured grids was established.
Design/methodology/approach
The influences of the elements ' nonorthogonality on the governing equations discretization of the metal flow in aluminium extrusion processes were fully considered to ensure the simulation accuracy. Volume-of-fluid (VOF) scheme was used to catch the free surface of the unsteady flow. Rigid slip boundary condition was applied on non-orthogonal grids.
Findings
This paper involved a simulation of a typical aluminium extrusion process by the FVM scheme. By comparing the simulation by the FVM model established in this paper with the ones simulated by the finite element method (FEM) software Deform-3D and the corresponding experiments, the correctness and efficiency of the FVM model for aluminium alloy profile extrusion processes in this paper was proved.
Originality/value
This paper uses the FVM widely used in CFD to calculate the aluminium profile extrusion processes avoiding the remeshing and mesh distortion during aluminium profile extrusion processes simulation when using the finite element method. Block-structured grids with the advantage of simple data structure, small storage and high numerical efficiency are used to fit the complex domain of the extrusion.
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Aqin Hu and Naiming Xie
The purpose of this paper is to explore a new grey relational analysis model to measure the coupling relationship between the indicators for the water environment status…
Abstract
Purpose
The purpose of this paper is to explore a new grey relational analysis model to measure the coupling relationship between the indicators for the water environment status assessment. Meanwhile, the model deals with the problem that the changing of indicator order may result in the changing of the degree of grey relation.
Design/methodology/approach
The binary index submatrix of the sample matrix is given first. Then the product of the matrix and its own transpose is used to measure the characteristics of the index and the coupling relationship between the indicators. Thirdly, the grey relational coefficient is defined based on the matrix norm, and a grey coupling relational analysis model is proposed.
Findings
The paper provides a novel grey relational analysis model based on the norm of matrix. The properties, normalization, symmetry, relational order invariance to the multiplicative, are studied. The paper also shows that the model performs very well on the water environment status assessment in the eight cities along the Yangtze River.
Originality/value
The model in this paper has supplemented and improved the grey relational analysis theory for panel data.
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Alex Bryson, John Forth and Minghai Zhou
CEO incentive contracts are commonplace in China but their incidence varies significantly across Chinese cities. We show that city and provincial policy experiments help explain…
Abstract
CEO incentive contracts are commonplace in China but their incidence varies significantly across Chinese cities. We show that city and provincial policy experiments help explain this variance. We examine the role of two policy experiments: the use of Special Economic Zones (SEZs) to attract Foreign Direct Investment (FDI), and the privatisation of State-Owned Enterprises (SOEs). The introduction of SEZs is found to be uncorrelated with the prevalence of CEO incentive contracts. However, firms are more likely to use such contracts in areas that saw rapid SOE privatisation, irrespective of the firm’s own current ownership status and irrespective of the size of the SOE sector in the late 1970s. The positive effect of privatisation is robust to various estimation techniques and model specifications. These findings suggest that domestic privatisation policies have been more influential than FDI in driving the expansion of incentive contracts in China.
Linyi Guo, Jing Du and Juncheng Zhang
Drawing on appraisal theory of emotion, this study aims to establish and test a moderated mediation model underlying the process of exploitative leadership by investigating the…
Abstract
Purpose
Drawing on appraisal theory of emotion, this study aims to establish and test a moderated mediation model underlying the process of exploitative leadership by investigating the mediating role of job anxiety and the moderating role of psychological entitlement.
Design/methodology/approach
We collected two-wave questionnaire data from 355 supervisors with matched responses from 1,065 subordinates in Hubei province of China. Hierarchical multiple regression and PROCESS macro were applied to test our hypotheses.
Findings
The results indicated that supervisor perceived overqualification prompted supervisor job anxiety, which then led to raised exploitative leadership. Additionally, we found that supervisor psychological entitlement intensified the direct effect of supervisor perceived overqualification on supervisor job anxiety as well as the indirect effect of supervisor perceived overqualification on exploitative leadership through supervisor job anxiety.
Originality/value
Although researchers have documented a growing number of consequences of exploitative leadership, less focus has been placed on its antecedents. The study extends our understanding of why, how and when supervisors engage in exploitative behaviors.
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Lei Qi, Bing Liu and Kaixian Mao
In the background of the post-financial crisis era and the transition of China’s economic development, the frequent occurrence of workplace deviant behavior in the economic field…
Abstract
Purpose
In the background of the post-financial crisis era and the transition of China’s economic development, the frequent occurrence of workplace deviant behavior in the economic field, such as stealing and bribery, caused a huge impact on the enterprise. In recent years, the deviant behavior of employees has been increased noticeably. The purpose of this study is to explore the influence of paternalistic leadership on employee deviant behavior in workplace. To have a deep understanding of the relationship between paternalistic leadership and employee deviant behavior, the author’s design rule-oriented ethical climate and self-interest-oriented ethical climate as two mediators in this research model.
Design/methodology/approach
Based on social learning theory and stressor-emotion model, this study conducts an investigation of influence mechanism between paternalistic leadership and workplace deviant behavior. Time-lagged data was collected from 226 employees from six cities in China. To test the hypothesis that the authors developed in this paper, the authors use empirical models from the existing literature about paternalistic leadership on employee deviant behavior. They establish multiple linear regressions to test the hypotheses.
Findings
This study reveals the direct effect of authoritarian leadership on employee deviant behavior and the moderated roles of benevolent leadership and moral leadership, also analysis the mediated mechanism of self-interest-oriented ethical climate and rule-oriented ethical climate. The results show that the higher the degree of authority leaders show in the organization, the easier to stimulate workplace deviance of employee, self-interest-oriented ethical climate and rule-oriented ethical climate play mediated role between authoritarian leadership and workplace deviant behavior. The interaction of benevolent leadership and moral leadership with authoritarian leadership can weaken the self-interest-oriented ethical climate but has nothing to do with rule-oriented ethical climate.
Originality/value
This study has three main contributions to the previous literature. First, this study explores the relationship between authoritarian leadership and employee workplace deviance, which could enrich the research on these negative behaviors in the Chinese context. Second, this study unpacks the “black box” in which authoritarian leadership influences employee workplace deviant behavior. Third, this study further examines the impacts of different combinations of the three factors of paternalistic leadership.
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Yingqiang Wu, Ruhua Huang and Baiyang Li
This study aims to overcome the “time blind spot” by exploring the multifactorial synergistic effects that enhance the utilization levels of open government data (OGD) portals…
Abstract
Purpose
This study aims to overcome the “time blind spot” by exploring the multifactorial synergistic effects that enhance the utilization levels of open government data (OGD) portals over time. The objective is to provide theoretical contributions and practical value for research related to open government data.
Design/methodology/approach
This study applies the dynamic qualitative comparative analysis (QCA) method to analyze panel data from 29 municipal portals spanning 2019–2023. Specifically, it examines the trends in the utilization levels of China’s OGD portals over time and identifies configurations of conditions that consider both spatial and temporal factors.
Findings
There are no necessary but insufficient conditions affecting the utilization levels of OGD portals. Instead, rather than being controlled by a single factor, the utilization levels are influenced by the combined effect of multiple factors. A sufficiency analysis of condition combinations identifies three configuration paths: portal and data resource development driven by fiscal support, portal development and public demand driven by government leadership and portal and data resource development driven by government leadership. In particular, the level of data portal development is identified as a core factor in achieving high utilization levels of OGD portals. Furthermore, while the configuration analysis results do not show significant temporal effects, there are case effects caused by a certain degree of spatial differences.
Originality/value
This pioneering study combines the dynamic QCA method based on panel data with the theme of OGD. Using panel data from 29 municipal platforms over the period from 2019 to 2023, this research addresses the shortcomings of limited time frames that have been encountered in previous studies. Moreover, it explores the configurational paths to enhancing platform utilization over time, aiming to provide both theoretical contributions and practical value for research related to the utilization of OGD portals.
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This study investigates whether, how and under what circumstances off-farm work induces farmland abandonment, which is of great importance for developing countries to cope with…
Abstract
Purpose
This study investigates whether, how and under what circumstances off-farm work induces farmland abandonment, which is of great importance for developing countries to cope with food security.
Design/methodology/approach
Exploiting large-scale panel data from the newly released Chinese Family Database, this study employs a two-way fixed effects model to empirically estimate the causal relationship between off-farm work and farmland abandonment.
Findings
In the context of large-scale labor migration in rural China, current off-farm work leads to an increase in the probability and area of farmland abandoned due to insufficient agricultural labor. However, off-farm work does not harm farm households in plain areas, or villages with land rental markets, abundant agricultural labor, and agricultural machinery, while it harms others. Moreover, farmers who work off-farm in the local area are less likely to abandon their farmland than those in other areas. Additionally, when the number of off-farm workers in a household exceeds two, the probability and area of farmland abandonment will miraculously decline, as the household will no longer live entirely on agriculture.
Originality/value
This study may fill the gap in clarifying the relationship between off-farm work and farmland abandonment, and identify scenarios where off-farm work may not cause farmland abandonment through multiple dimensions, providing insights into the governance of farmland abandonment during rural-urban transformation in developing countries.
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Zhaoyang Sun, Haiyang Zhou, Tianchen Yang, Kun Wang and Yubo Hou
The shape of a product plays a crucial role in shaping consumer behavior. Despite the voluminous research on factors influencing consumers’ shape preferences, there remains a…
Abstract
Purpose
The shape of a product plays a crucial role in shaping consumer behavior. Despite the voluminous research on factors influencing consumers’ shape preferences, there remains a limited understanding of how the busy mindset, a mentality increasingly emphasized by marketing campaigns, works. This study aims to fill this gap by exploring the relationship between a busy mindset and the preference for angular-shaped versus circular-shaped products and brand logos.
Design/methodology/approach
This research consists of seven experimental studies using various shape stimuli, distinct manipulations of busy mindset, different assessments of shape preference and samples drawn from multiple countries.
Findings
The findings reveal that a busy mindset leads to a preference for angular shapes over circular ones by amplifying the need for uniqueness. In addition, these effects are attenuated when products are scarce.
Originality/value
This research represents one of the pioneering efforts to study the role of a busy mindset on consumers’ aesthetic preferences. Beyond yielding insights for practitioners into visual marketing, this research contributes to the theories on the busy mindset and shape preference.