Wen-Kuei Wu, Hsiao-Chung Wu and Chih-Sung Lai
This study aims to explore how a buyer's perceived buyer-seller (B-S) guanxi facets (i.e. ganqing, renqing and mianzi) and guanxi positions (i.e. zi-ji-ren, shou-ren and…
Abstract
Purpose
This study aims to explore how a buyer's perceived buyer-seller (B-S) guanxi facets (i.e. ganqing, renqing and mianzi) and guanxi positions (i.e. zi-ji-ren, shou-ren and sheng-ren) affect the seller's influence effectiveness (SIE) and purchase intention (PI) in social commerce.
Design/methodology/approach
This study conducted an online survey in three cities of Taiwan and collected a total of 364 data. The structural equation modeling and cluster analysis were used to test research hypotheses.
Findings
The results indicate that (1) each guanxi facet exerts a different and positive impact on SIE, but only one guanxi facet – renqing – helps improve PI, (2) guanxi facets can be used to predict the buyer's perceived guanxi position toward the seller, (3) the effect of guanxi facets on SIE and PI varies across B-S guanxi positions and (4) the SIE positively mediates effects of guanxi facets on the PI.
Originality/value
This study demonstrates the individual effect of each guanxi facet on SIE and PI and affirms the implicit guanxi position features guanxi facets and determines the buyer's perceived SIE and PI as well. To the best of our knowledge, these findings are rarely proposed in previous research and are beneficial for understanding the guanxi mechanism in social commerce.
Details
Keywords
Wei Chieh Liang, Yao Chun Tsao, Wen Kuei Chen, Hsing Chau Tseng and Ke Jian Yu
– The purpose of this paper is to integrate Modigliani-Miller (MM) theory and stock repurchases strategy to procure a practical concept for capital decision.
Abstract
Purpose
The purpose of this paper is to integrate Modigliani-Miller (MM) theory and stock repurchases strategy to procure a practical concept for capital decision.
Design/methodology/approach
No-arbitrage proof model deduction was used in this study. The authors consider corporate tax and funding sources as two crucial factors drawn in the model. The paper derives some propositions by trichotomy property and keeps the key assumptions of MM Capital Structure Theory.
Findings
There are two different effects on firm's value through stock repurchases. The positive effect occurs on firm's value through stock repurchases with loan fund. And the negative impact exists on firm's value through stock repurchases with idle fund.
Research limitations/implications
Notably, in the real world there are three limitations with such an arbitrage transaction (Stulz, 2000). The first one is the default risk, and the second one is transaction costs and the last one is the perfect credit market assumption. In the near future, the authors suggest it would be interesting to involve the interest rate factor and contingent tax variable into our model.
Originality/value
On the basis of no arbitrage opportunity, this paper considers both trichotomy property and MM theory. It proves the share repurchase strategy should be financed by borrowing fund. In contrast, share repurchase should not be executed with idle fund because of opportunity cost.