Abstract
Subject area
Investments.
Study level/applicability
The case is suitable for students with diverse backgrounds – from different countries with different cultures, and from different programs (undergraduate or graduate). The case will be used for an all-English course “The research of Chinese stock markets” and has been used for the course “Portfolio theory and management” (junior student level) at Nankai University.
Case overview
The case introduces Chinese stock markets' uniqueness that there exists a huge number of previously nontradable shares. The release of the shares radically changes the markets' balance and causes the absolute dominance of stock supply over stock demand. Based on the analysis for ICBC, the case demonstrates that the dominance can explain the drop of ICBC's stock price by supply-demand law but fundamental analysis cannot.
Expected learning outcomes
The case will help students to understand the uniqueness of Chinese stock markets and the applicability of supply-demand law in the markets and then be able to make investment decisions.
Social implications
The case can help to educate not only students but also Chinese and foreign investors about the uniqueness of Chinese stock markets and arm the students and investors with the supply-demand methodology to analyse the markets and the reasoning of when and how to invest.
Supplementary materials
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Junsheng Zhang, Yue Qi, Yaoqing Song and Yamin Zeng
Audit firms have a strong historical tradition of professionalism, but they are also commercial entities. This study aims to investigate the relationship between auditor cash…
Abstract
Purpose
Audit firms have a strong historical tradition of professionalism, but they are also commercial entities. This study aims to investigate the relationship between auditor cash compensation and office-level financial performance.
Design/methodology/approach
This study uses proprietary compensation expense and financial performance data from audit offices in China. Using the ordinary least squares regressions, this study tests the association between per capita compensation and office-level financial outcomes.
Findings
This study provides evidence that audit offices offering higher compensation achieve more profitable performance, as reflected in increased market share, higher return on assets and greater operating profit margins. Mechanism tests suggest that reductions in auditor turnover, driven by compensation incentives, partially account for this performance improvement. Additional tests show that the benefits of compensation incentives are particularly pronounced in audit firms licensed to conduct listed firm audits or when accompanied by staff training and technical development. Furthermore, both partner-level and staff auditor compensation significantly enhance office-level financial performance. The results might be of interest to both practitioners and regulatory bodies.
Originality/value
To the best of the authors’ knowledge, this study is the first to examine the relationship between auditor cash compensation and audit-office profitability. The findings highlight important policy implications for audit firms seeking to retain high-caliber auditors and maximize their economic benefits through human capital investments, including compensation, education, training and technical development.
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Leigh Anne Liu, Chi-Yue Chiu and Zhi-Xue Zhang
The purpose of this paper is to conceptually distinguish between communal and exchange relationship schemata and analyze their dynamic interactions and transformations in…
Abstract
Purpose
The purpose of this paper is to conceptually distinguish between communal and exchange relationship schemata and analyze their dynamic interactions and transformations in multicultural contexts.
Design/methodology/approach
Drawing on theories of social capital, social exchange, networks and relational models, the authors propose a framework to conceptualize how the communal and exchange relationship schemata can be transformed, integrated and multiplied under contextual influences, especially in culturally complex settings faced by multinational organizations.
Findings
The authors elucidate the dynamic processes of schemata interactions and transformations in relationship management at interpersonal, interorganizational and national levels in a variety of intercultural contexts, including interactions between monoculturals from different cultures and interplay of cultures within biculturals and among multiculturals. The authors explain how schemata integration and fusion can provide competitive advantages in navigating multicultural relationships.
Research limitations/implications
Systematic qualitative and quantitative studies are recommended to further test and refine the proposed ideas regarding the dynamic interactions and transformations of relationship schemata.
Practical implications
This paper presents implications for individuals, country managers and leaders who need to initiate and maintain relationships with culturally different others. The authors highlight the desirability of being aware of one's own relational schema, understanding others' schema, bridging the two schemata as well as fostering integration and fusion of the schemata.
Social implications
The 2020 global pandemic and various social upheavals around the world highlight the urgency of finding effective mental models to manage relationships. The inclusive and adaptive ways of thinking about relationships can potentially facilitate harmonious connections and conflict resolution.
Originality/value
The authors conceptually disentangle two established relationship schemata and offer a model of their dynamic synergetic transformations.
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Honghao Tang, Mingyue Lin, Jing Yu and Qi Yue
The focus of this paper is to further improve the implementation safeguard measures of the National Plan for Main Functional Zones of Ocean (NPMFZO) based on the implementation…
Abstract
Purpose
The focus of this paper is to further improve the implementation safeguard measures of the National Plan for Main Functional Zones of Ocean (NPMFZO) based on the implementation status of the national marine main functional area plan after the promulgation of the existing marine planning implementation safeguard measures, aiming at the problems existing in the implementation of the plan, to help the implementation of the plan more effective.
Design/methodology/approach
This paper reviews the historical process of the preparation and implementation of NPMFZO, analyzes the problems existing in the implementation of this plan, and puts forward some measures and suggestions under the background of the new national territory planning system.
Findings
In the new period, the authors should focus on building the evaluation system of planning implementation, strengthening the coordination with other plans, improving the supporting policies of planning and ensuring the effective implementation of the main functional zoning of oceans under the territorial spatial planning system.
Originality/value
This paper reviews some problems existing in the implementation of the NPMFZO and puts forward policy suggestions to ensure the implementation of the plan in the new period.
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Rajeev Batra, Dongmei Li and Chi-Yue Chiu
This paper aims to identify distinct consumption patterns among Asian consumers and examine how these relate to cultural antecedents and key human values.
Abstract
Purpose
This paper aims to identify distinct consumption patterns among Asian consumers and examine how these relate to cultural antecedents and key human values.
Design/methodology/approach
This study uses a large, representative sample of almost 7,000 Asian consumers in 10 culturally varying markets, using latent profile analysis (LPA) to identify the consumption profiles.
Findings
The findings empirically demonstrate that the two profiles are “inner-directed nationalistic frugals” (IDNF) and “outer-directed self-eekers” (ODSS). IDNF consumers spend more time and money on education and prefer ethnocentric consumption. ODSS consumers emphasize individuality, self-expression, seeking novelty and impressing others. Consumers with more collective values in Schwartz's typology tend to demonstrate the IDNF pattern; those with more individualistic values demonstrate the ODSS pattern. The distribution of IDNF and ODSS profiles is influenced by demographics, religion and geographical region: IDNF is greater than ODSS in Southeast Asia; ODSS is greater than IDNF in East Asia; IDNF is roughly equal to ODSS in Northeast Asia. IDNF tends to be found among older and more religious consumers, while ODSS is the opposite. Importantly, in the more religious Southeast Asian countries, even younger consumers are more IDNF than ODSS.
Research limitations/implications
This research uses an exploratory and discovery-oriented approach; future research can use more confirmatory approaches to systematically examine the relationship between cultural dimensions (e.g. individualism-collectivism) and consumption patterns.
Practical implications
For their brands to grow in Asian markets, marketing practitioners are advised to use multiple brands to segment Asian consumers based on their values, demographics, geographical location and what religious/faith traditions they follow.
Originality/value
This is the first paper to identify consumption profiles in Asian markets using LPA without prior conceptual biases and relate them to cultural values and demographic variables.
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Honghao Tang, Qi Yue, Chen Wang, Lingling Zhou, Jing Yu, Wen Wu, Ruoyan Feng and Chen Ma
The major marine functional zoning plan (MMFZP) and marine functional zoning (MFZ) are two important kinds of marine spatial planning (MSP) in China. Their developing and…
Abstract
Purpose
The major marine functional zoning plan (MMFZP) and marine functional zoning (MFZ) are two important kinds of marine spatial planning (MSP) in China. Their developing and implementation are integral to rational marine utilization and sustainable marine development. The purpose of this research is to study how these two kinds of MSP work in coordination in China.
Design/methodology/approach
This paper reviewed the present status of MSP research in China and abroad and presented a comparative study of the MMFZP and MFZ from different aspects, analyzing the relationship between the two.
Findings
The study found obvious differences between the MMFZP and MFZ, with respect to their concept and connotation, purpose and goal, as well as zoning methods and zoning functions. MFZ provides reference with respect to data, zoning methods and partial zoning results for the MMFZP, which in turn takes measures for addressing issues faced by MFZ and promotes the national MSP work.
Originality/value
In the process of developing and implementing the two zoning plans, this paper emphasizes the necessity to strengthen data sharing, reference of zoning techniques and coordination in zoning work, which will help to improve China's marine spatial management.
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Qi Yue, Ping Deng, Yanyan Cao and Xing Hua
Post-acquisition control is a crucial factor affecting acquisition performance. We investigate how post-acquisition control strategy affects cross-border acquisition performance…
Abstract
Purpose
Post-acquisition control is a crucial factor affecting acquisition performance. We investigate how post-acquisition control strategy affects cross-border acquisition performance of Chinese multinational enterprises (MNEs) through a configurational perspective.
Design/methodology/approach
Based on 70 cross-border acquisition cases by Chinese MNEs, we adopt fuzzy-set qualitative comparative analysis (fsQCA) to study the combined effects of strategic control, operational control, institutional distance, cultural distance, relative capacity and business relatedness on the cross-border acquisition performance.
Findings
On the basis of fuzzy set analysis of multiple interdependent factors, we identify six configurations that are conductive to achieving high cross-border acquisition performance and two configurations that relate to the absence of high performance, thus shedding light on the casually complex nature of performance drivers of acquisitions.
Originality/value
This study provides a holistic, configurational approach to investigating cross-border acquisition performance by emerging market firms. Our results provide some compelling evidence that accounts for the causal complexity of post-acquisition control strategies and acquisition outcomes in the context of emerging economies.
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Song Lin, Edward G. Rogoff, Check-Teck Foo and Xiaoyuan Liu
This empirical study aims to test the impact of four types of entrepreneurial context on the growth and success rates of new ventures in China and related the findings to the…
Abstract
Purpose
This empirical study aims to test the impact of four types of entrepreneurial context on the growth and success rates of new ventures in China and related the findings to the theory and practice of entrepreneurship dating back 2,500 years to ancient China.
Design/methodology/approach
After describing the business guidelines given by Fan Li, an entrepreneurial merchant selling Chinese medicines in ancient times, a conceptual framework was extracted as the basis for a discussion of the relationship between entrepreneurial context and entrepreneurial activity. Entrepreneurial context was conceptualized as being composed of family, social, business and institutional components. Five hypotheses about the influence of these different context variables on entrepreneurial activities were developed. From data compiled from the sampling of 239 business entrepreneurs in Beijing, a hierarchical regression was formed and the hypotheses tested.
Findings
The impact of entrepreneurial context on entrepreneurial activity can be divided into two layers, internal factors (e.g. family context) which are similar to “yin” (?) in the traditional Chinese philosophy while external factors (e.g. business, social and institutional contexts) were like “yang” (?). The two factors play different roles in entrepreneurial activities, while different contexts mediate and moderate each other in complex ways.
Research limitations/implications
Research limitations pertain to the size and locale of the sample. A larger sample that involved subjects from different regions would facilitate a wider understanding of the effects of entrepreneurial context upon the entrepreneurial process.
Originality/value
The theory of entrepreneurial context is in its beginning stages, and the paper completed a systematic study of entrepreneurial context through theoretical model building using large-sample empirical research. In addition, the paper is the first ever to relate the theory and practice of entrepreneurship back 2,500 years. Through a multi-research methodology, the study clearly shows the critical importance of integrating Chinese history into the development of management theory.
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Zhiwei Qi, Tong Lu, Kun Yue and Liang Duan
This paper aims to propose an incremental graph indexing method based on probabilistic inferences in Bayesian network (BN) for approximate nearest neighbor search (ANNS) that adds…
Abstract
Purpose
This paper aims to propose an incremental graph indexing method based on probabilistic inferences in Bayesian network (BN) for approximate nearest neighbor search (ANNS) that adds unindexed queries into the graph index incrementally.
Design/methodology/approach
This paper first uses the attention mechanism based graph convolutional network to embed a social network into the low-dimensional vector space, which could improve the efficiency of graph index construction. To add the unindexed queries into the graph index incrementally, this study proposes to learn the rule-based BN from social interactions. Thus, the dependency relations of unindexed queries and their neighbors are represented, and the probabilistic inferences in BN are then performed.
Findings
Experimental results demonstrate that the proposed method improves the search precision by at least 5% and search efficiency by 10% compared to the state-of-the-art methods.
Originality/value
This paper proposes a novel method to construct the incremental graph index based on probabilistic inferences in BN, such that both indexed and unindexed queries in ANNS could be addressed efficiently.