Yu Yuan, Jia Liao and Liping Zheng
This study empirically investigates the impact of directors' and officers' liability insurance on corporate environmental investment.
Abstract
Purpose
This study empirically investigates the impact of directors' and officers' liability insurance on corporate environmental investment.
Design/methodology/approach
This paper takes A-share listed firms in the most polluting industries from 2013 to 2019 as the research sample. The authors perform multiple regression analysis to examine the research question, and other approaches such as PSM and Heckman two-stage model are applied to test the robustness of the main results.
Findings
The authors find that D&O insurance insured firms significantly decrease the level of corporate environmental investment. The results keep consistent after alleviating potential endogenous concerns. Further analysis shows that the negative association between D&O insurance and environmental investment is more pronounced in firms facing greater environmental pressure and stronger market supervision, and firms located in regions with a rich legal environment.
Research limitations/implications
This research extends the literature on the antecedents of corporate environmental investment and the consequences of D&O insurance.
Practical implications
The study may deepen people's understanding of D&O insurance and inform them of its negative effects. This research sheds light on the potential factor resulting in a relatively low level of corporate environmental investment in China, which has an important policy implication for government to carry out some regulations to make a difference.
Originality/value
Against the backdrop that more importance has been attached to environmental protection globally, this paper is the first study to examine the impact of D&O insurance on corporate environmental investment in the context of the transitional and emerging market-China.
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Jia Liao, Liping Zheng and Yu Yuan
The purpose of this paper is to examine the impact of corporate environmental responsibility (CER) on corporate cash holdings. This paper also investigates the moderating effects…
Abstract
Purpose
The purpose of this paper is to examine the impact of corporate environmental responsibility (CER) on corporate cash holdings. This paper also investigates the moderating effects of ownership type and institutional environment between CER and corporate cash holdings.
Design/methodology/approach
This study uses the data of the most polluting listed companies on the Shanghai and Shenzhen stock exchange markets over the period 2010–2019. CER data from Hexun.com (a professional CSR evaluation system) are used to measure CER performance. Two proxies are used to measure the level of cash holdings simultaneously, where CASH1 is calculated as the ratio of cash and cash equivalents to total assets, and CASH2 is calculated as the ratio of cash and cash equivalents to net assets (total assets minus cash and cash equivalents). Finally, multiple regression analysis is applied to test the research hypotheses.
Findings
The results show that environmentally responsible companies hold substantially less cash, and the result is statistically significant and robust even after using firm fixed effects and applying alternative measures of cash holdings or alleviating potential endogeneity. In addition, the results of cross-sectional tests show that the negative relation between CER and corporate cash holdings is concentrated among non-state-owned enterprises, and firms in provinces with more developed institutions. Furthermore, the result of the analysis of the economic consequence shows CER significantly increases the value of cash holdings.
Research limitations/implications
This study focuses on China's institutional context, which limits the generalizability of the findings to other countries. However, the objective of this research can be studied in other institutional settings, so the above limitations provide a springboard for further research. Furthermore, the environmental protection investment, green technology innovation, and even pollutant discharge of companies can also be important indicators to measure the performance of firms in fulfilling their environmental responsibilities, which can be considered in future research.
Practical implications
The findings of this study may help company management in China to establish a correct view of environmental responsibility to achieve corporate value creation and corporate sustainability. And our research can also provide the policy reference value for the Chinese government to further improve environmental protection policies and systems, guide enterprises to conduct green production to realize the country's vision of an environmentally friendly society.
Originality/value
Based on the current background that countries in the world advocate the development of a green economy, this is the first study to examine the impacts of the environmental responsibility of the most polluting companies on corporate cash holdings and the value of cash holdings in the context of China, an emerging market.
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Pianpian Yang, Liping Qian and Songyue Zheng
The purpose of this study is to enhance the understanding of the role of contracts in channel relationships. Treating contracts as a multidimensional construct, this study…
Abstract
Purpose
The purpose of this study is to enhance the understanding of the role of contracts in channel relationships. Treating contracts as a multidimensional construct, this study examines the effects of contractual issue inclusiveness and contractual obligatoriness on performance and opportunism, as well as the moderating effects of relational norms on the above relationships.
Design/methodology/approach
Based on the data of 206 samples collected from distributors of house furnishing, computer and computer components, moderated regression is used to test the hypotheses.
Findings
The empirical test generally supports the conceptual model and provides three findings. First, contractual issue inclusiveness is more profound in enhancing relationship performance than contractual obligatoriness, and contractual obligatoriness is more statistically powerful in mitigating opportunism than contractual issue inclusiveness. Second, relational norms can enhance the positive effect of contractual issue inclusiveness but not contractual obligatoriness on performance. Third, relational norms can strengthen the negative effect of contractual obligatoriness but not contractual issue inclusiveness on opportunism.
Research limitations/implications
First, this study investigates only contractual issue inclusiveness and contractual obligatoriness, and future studies should consider other dimensions of contracts. Second, the influence of external environment is not considered in the model. Third, data from Chinese distributors limit the generalization of conclusions. Finally, data come only from buyers, and suppliers’ viewpoints are not included.
Practical implications
The results provide a framework for managers to use contracts and relational norms. Managers should pay attention to the alignment between contractual dimensions and firm objectives because various dimensions of contracts have different impacts on channel relationships.
Originality/value
Prior research has documented contracts’ role in coordinating channel relationships but has not achieved consistent conclusions on contracts’ effectiveness. Furthermore, extant research indicates that channel members will use contracts and relational norms simultaneously but has conflicting views on the combined effects of these two control mechanisms. The study contributes by addressing these issues.
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Yansong Zheng, Liping Zhang, Qiang Zeng and Chaojin Han
Functional disorders caused by food intolerance (FI) are prevalent, thus it is important to analyze the FI of healthy people to common foods so as to guide the people for eating…
Abstract
Purpose
Functional disorders caused by food intolerance (FI) are prevalent, thus it is important to analyze the FI of healthy people to common foods so as to guide the people for eating the healthy foods. The paper aims to discuss this issue.
Design/methodology/approach
In total, 88,436 healthy persons including 60,902 males and 27,534 females at the age ranging from 20 to 70 years old were subjected a normal physical examination. In total, 14 kinds of food-specific IgG antibodies were detected by enzyme-linked immunesorbent assay.
Findings
The total positive rate of 14 FIs was as high as 64.16 percent. Five kinds of foods (egg, crab, cod, shrimp and milk) accounted for 84.51 percent of the total positive rate. In more than one kind of FIs, egg took the largest proportion than the others and the proportion was 58.54 percent. The second was crab with a positive rate of 56.19 percent. The antibody positive rate of any food in one kind of FIs was significantly lower than that in more than one kind of FIs (χ2=629.35, p<0.001). Also, younger age subjects displayed the higher positive rate than the older age groups. In addition, there was no significant difference on FI between male and female subjects.
Originality/value
The results would not only prompt us to pay more attention to FI in daily life, but provide theoretical foundation for the early prevention, diagnosis and treatment of related clinical diseases as well as guiding people healthy meals.
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Chundong Zheng, Liping Yuan, Xuemei Bian, Han Wang and Lei Huang
Management response to consumer comments has become a widely adopted marketing strategy to address the undesirable effects caused by negative remarks. Yet, when and what…
Abstract
Purpose
Management response to consumer comments has become a widely adopted marketing strategy to address the undesirable effects caused by negative remarks. Yet, when and what management response is more effective and under what circumstances remains under-researched. This study aims to fill this gap.
Design/methodology/approach
In three experiments using five different products, the authors manipulate psychological construal level (psychological distance: distant vs proximal) and management response (response of primary vs secondary features) and thereafter assess their bearings on consumer psychological and behavioral reaction toward products of two distinctive natures (hedonic vs utilitarian).
Findings
At a psychological distance, consumers show a preferable reaction to management response of primary over secondary features. In contrast, when the psychological distance is proximal, consumers react more positively to management response of secondary than primary features. In addition, these effects vary as a function of product nature, hedonic vs utilitarian.
Research limitations/implications
The findings of this research bring a significant contribution to marketing communication literature and extend the construal level theory.
Practical implications
A better understanding of the relative effectiveness of distinct types of management response to negative consumer comments is essential for more targeted and effective marketing strategies.
Originality/value
Little research has documented the effects of distinct types of management response. How psychological distance might underpin these effects has not been explored. In addition, whether the interaction effect of management response and psychological distance varies with differences in product nature, namely, hedonic and utilitarian, remains unanswered until this research.
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Songyue Zheng, Liping Qian and Pianpian Yang
This study examined how the technological (tech) advantage and market advantage of new products influence the level of formal channel governance and, in turn, affect the success…
Abstract
Purpose
This study examined how the technological (tech) advantage and market advantage of new products influence the level of formal channel governance and, in turn, affect the success of new products in the presence of relational governance.
Design/methodology/approach
The hypotheses are tested using the partial least squares approach to analyse survey data collected from 392 retailers of customer goods in China.
Findings
The results indicate that tech advantage and market advantage lead to an increase in retailers' transaction-specific investments (TSIs) and contract explicitness, respectively; the positive effect of market advantage on a retailer's TSIs will gradually decrease and will even become negative beyond a certain point. The relational governance mechanism can substitute for the effects of contract explicitness on improving new product success.
Originality/value
This research provides a new perspective for understanding new product advantage and exerts an initial effort to empirically distinguish between tech advantage and market advantage. It enriches the innovation literature by examining the governance of new product launches through retailers and explores the effects of formal and informal governance on channel cooperation performance in the new product launch stage.
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Jing Wang, Yinhua Gu, Yu Luo, Yalin Huang and Liping Liao
This paper aims to explore the mechanism of influence on the subordinate's sense of gain at work (SGW) in terms of the coaching leadership behavior (CL), supervisor-subordinate…
Abstract
Purpose
This paper aims to explore the mechanism of influence on the subordinate's sense of gain at work (SGW) in terms of the coaching leadership behavior (CL), supervisor-subordinate guanxi (SSG) and commitment-based practice of human resource management (CHRM).
Design/methodology/approach
Based on the survey of 584 employees from 50 firms operating in China, this study explores the effect of CL on employees’ SGW, which concerns two dimensions: sense of material gain and sense of spiritual gain.
Findings
Results show that the CL has a significant positive influence on both the subordinate’s sense of material gain and his/her sense of spiritual gain, in which there exists a mediating effect of SSG and moderating effects of CHRM for the influence.
Practical implications
This study not only develops the theory of SGW, but also provides a scientific basis and policy suggestions for employers to implement in order to enhance their employees’ SGW.
Originality/value
Few integrative studies have examined the impact of CL on employees’ SGW. Based on the Need-to-Belong Theory, this study adds new empirical evidence and constructs a theoretical model for the mechanism of influence on the SGW, examines the influence of CL on the subordinate’s SGW and finds a mechanism of transmission (SSG) and a boundary condition (CHRM) for the influence.
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Xinyi Huang, Fei Teng, Yu Xin and Liping Xu
This paper aims to study the effect of the establishment of bankruptcy courts on bond issuance market. This paper helps to predict that the introduction of bankruptcy courts in…
Abstract
Purpose
This paper aims to study the effect of the establishment of bankruptcy courts on bond issuance market. This paper helps to predict that the introduction of bankruptcy courts in China can mitigate price distortions caused by the implicit government guarantees and promote the development of the high-risk bond market.
Design/methodology/approach
This paper exploits the staggered introduction of bankruptcy courts across cities to implement a differences-in-differences strategy on bond issuance data. Using bonds issued in China between 2018 and 2020, the impact of bankruptcy courts on the bond issuance market can be analyzed.
Findings
This paper reveals that bond issuance credit spreads increase and is more sensitive to firm size, profitability and downside risk of issuance entity after the introduction of bankruptcy courts. It also reveals a substantive increase in bond issuance quantity and a decrease in issuer credit ratings following the establishment of bankruptcy courts. In addition, the increase of credit spreads is more prominent for publicly traded bonds, those whose issuers located in provinces with lower judicial confidence, bonds issued by SOEs and bonds with stronger government guarantees. Finally, the role of bankruptcy courts is more pronounced in regions with higher marketization.
Originality/value
This paper relates to previous studies that investigate the impact of laws and institutions on external financing. It helps provide new evidence to this literature on how improvements of efficiency and quality in bankruptcy enforcements relate to the marketization of bond issuance. The results provide further evidence on legal institutions and bond financing.
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Jie Zhong, Li Zhang, Ping Li and Duo Zhen Zhang
The purpose of this paper is to explore the relationship between leader humility and employee well-being. Based on social information processing (SIP) theory and previous…
Abstract
Purpose
The purpose of this paper is to explore the relationship between leader humility and employee well-being. Based on social information processing (SIP) theory and previous literature concerning leader humility, this paper identifies employee humility as the mediator and suggests that perceived leader effectiveness moderates these relationships.
Design/methodology/approach
This study employed a survey involving 228 employees to test the hypothesized moderated-mediation model.
Findings
Leader humility is positively related to employee well-being. Employee humility mediates leader humility and employee well-being, except for emotional exhaustion. Moreover, the effect of leader humility on employee humility and the indirect effect of leader humility on employee job satisfaction and work engagement are stronger under high perceptions of leader effectiveness.
Originality/value
Based on the framework of SIP theory, this paper contributes to the literature on humble leadership and employee well-being by treating employee humility as the mechanism and perceived leader effectiveness as the moderator. Few previous studies have investigated the influence of leader humility on employee well-being.
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Chunyu Zhang, Jiayan Xu and Liping Liu
The purpose of this study is to explore the relationships between shared leadership, psychological contract, felt obligation and employees’ creative deviance as well as to…
Abstract
Purpose
The purpose of this study is to explore the relationships between shared leadership, psychological contract, felt obligation and employees’ creative deviance as well as to investigate the mediating role of psychological contract and the moderating role of felt obligation in these relationships.
Design/methodology/approach
This study used convenience sampling to obtain longitudinal data collected (interval of one week) from 348 frontline hotel employees. The SPSS Process Model 5 was used to test the moderated mediation model.
Findings
The results indicated that shared leadership has a significant positive impact on both employee creative deviance and psychological contract and psychological contract positively influences creative deviance. The results confirmed that the psychological contract mediated the relationship between shared leadership and employee creative deviance. The study also highlighted the moderating role of felt obligation on the relationship between shared leadership and employee creative deviance.
Originality/value
This study contributes to the literature on shared leadership, psychological contract, felt obligation and creative deviance by providing empirical evidence of the mediating and moderating effects of psychological contract and felt obligation on the relationship between shared leadership and employee creative deviance. The findings offer practical insights into how organizations can leverage shared leadership to enhance employee creative deviance through psychological contract and felt obligation.