Frontiers of Business Research in China
Throughout the 20th century, many East Asian societies imported and transplanted the institutional foundations for industrialization and market economies, which has provided for substantial advances in material well-being. However, Confucianism, the predominant basis of traditional Chinese morality since antiquity, has begun staging a comeback in the recent years. Yet it is unclear as to how modern Confucian firms in a market economy will be organized, or how this will affect firm competitiveness. To shed further light on these issues, we examine the extant literature and identify several characteristics associated with Confucian business practice along with their potential impact on firm performance. We illustrate each of these characteristics with a company that explicitly follows Confucian business practice—Taiwan-based Sinyi Real Estate. It is found that, in general, Sinyi Real Estate conforms to the description of Confucian-based business practice that is expounded in the extant literature. However, there are a few surprises.
This book is about how Chinese entrepreneurs deal with China’s most important institution-the government-in their struggle to survive and even prosper in China’s transitional economy. It takes an "inside look" at several private firms in China and provides a first-hand account, as well as the underlying rationale and decision considerations, of their corporate political strategy. The book is based firmly on solid academic research but actually written with both practitioners and scholars in mind. It offers candid and insightful quotes and observations from the owners and executives of China’s private firms with regards to their dealing with the government.
This book advances a typology of corporate political strategies based on the respective motivations of the business (the entrepreneurs and their firms) and the government (the government institutions and individual officials) as well as the modes of their interactions. Eight different types of political strategies by China’s private firms are identified and illustrated with real-life examples, ranging from one-night-stand, situational shopper, good ole friend, patronage seeker, model volunteer, institutional improviser, direct participator, to red hat insider. The book also dissects a living case and traces the development of one particular private firm, from its humble start-up to present day glory, which fittingly illustrates the evolution and dynamics of the various types of political strategies the firm employed at different stages of its growth.
For anyone who wants to understand China’s private firms and the Chinese government, thus be able to deal with them more effectively, this book is a must-read.
Behavioral Research in Accounting
This study empirically examines capital budgeting methods. Based on 115 responses from a cross-sectional survey and two approaches to contingency fit, this study produces three basic findings. First, both discounted cash flow (DCF) techniques and nonfinancial measures are widely used in capital budgeting. However, DCF techniques are more important than nonfinancial measures, and nonfinancial measures appear to serve as a partial substitute when DCF analysis is less efficient. Second, DCF techniques and nonfinancial measures are not unconditionally appropriate. Although the impact of firm strategy on capital budgeting methods is not supported by the present results, the study shows that product standardization affects both capital budgeting methods, as hypothesized. Firms with high product standardization tend to place more emphasis on DCF analysis, while firms with low standardization are more likely to focus on nonfinancial measures. Third, an appropriate fit under contingency theory between product standardization and the two capital budgeting methods is significantly associated with a firm's satisfaction with the capital budgeting process. [ABSTRACT FROM AUTHOR]
Journal of International Accounting Research
Understanding the incentives for and consequences of accounting method choices is important to various constituents of accounting. In 1998, a Chinese accounting regulation allowed listed companies to voluntarily write‐down assets through their income statements. The regulation was amended in 1999 to require all companies to write‐down assets, with a retroactive adjustment of pre‐1998 asset impairment to the beginning equity. These events allow us to unambiguously identify a test sample that voluntarily wrote down assets in 1998, and a control sample that suffered from asset impairment but chose not to write‐down. This research setting is free from many problems that have been identified in the asset write‐down literature. Overall, we find that the voluntary asset write‐downs have a positive valuation effect. While recognizing the possibility of alternative explanations, we believe our results, taken together, are more consistent than others, with the voluntary write‐downs being a signal of the potential for performance improvement. We provide evidence consistent with this signaling explanation. This study adds additional evidence to the accounting choice literature by taking advantage of a unique research opportunity in China and adopting a broad approach to examining both the incentives for and consequence of voluntary asset write‐downs.
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The rise of China and its major corporations will be a key economic development in this century. Even as leading Chinese firms show their muscle through ambitious acquisitions of firms like Thinkpad and RCA, many western investors and business leaders know little or nothing about them. This book looks at the rise of Chinese firms, who they are, how they'll change the global competitive landscape, their strengths and weaknesses, and how established western firms might meet the challenges and opportunities this trend presents.
A uniquely integrated view of the global strategy issues facing firms today.
Written by the subject's leading academic authorities, this highly readable text (a student favorite) addresses the most challenging task faced by multinational companies–how to deal with globalization and the resulting need for globally integrated strategies.
The third edition–in addition to featuring new coauthor Tomas Hult–presents a complete rewrite of all chapters, a more integrated view of eBusiness and service issues, and a new slate of innovative, practical examples in the text and case vignettes.