Journal of Business Strategy
Purpose – To date, more than 400 of the Fortune 500 companies have already established their presence in China. Like their larger counterparts, smaller multinationals are also attracted by the huge potential market and cheap resources that China has to offer. Thus, the purpose of this paper to examine key strategies that small internationalizing firms (SIFs) need to focus on for a successful China engagement. Design/methodology/approach – The findings of this study are based on a year-long research of New Zealand firms in China. The study involved a survey of senior managers of New Zealand companies at home as well as a focus group discussion among executives in China. Findings – The study identifies three dimensions of strategy that SIFs need to pay particular attention – the attributes of the China bound manager, the business focus of the enterprise, and the guanxi building capabilities. Originality/value – This paper is based on the premise that the SIF cannot mirror the exact strategies of larger multinationals. Previous literature tends not to distinguish the size of the firm when discussing the China engagement. The paper emphasizes a carefully designed effort to choose the right general to lead the assault on the world's largest market.
Asia-Pacific Journal of Accounting and Economics
The rise of fees paid to incumbent auditors for non-audit services (NAS) relative to audit fees has been actively debated by the accounting profession, investors, and regulators. Although accounting firms are banned by the Sarbanes-Oxley Act from providing non-auditing services to their auditees, the debate is far from over. Despite the negative publicity generated by NAS purchases, why do managers continue to purchase increasing quantities of NAS? We contribute to this debate by offering an alternative explanation on determinants of NAS purchase decisions. We find that (1) the association between NAS purchases and earnings management documented in extant literature is affected by the way top managers are compensated and by managers' shareholdings, and (2) NAS purchases are positively associated with the proportion of performance-based compensation paid to the top five executives and this association is more pronounced for firms with high investment opportunities.