Sep 2007, Volume 1 Issue 3
    

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  • The effects of brand origin country and made-in country on consumers’ product evaluations and purchase intention
    WU Jian, FU Guoqun
    2007, 1(3): 333-350. https://doi.org/10.1007/s11782-007-0019-7
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    This research explores the different effects of brand origin country and made-in country on consumers’ product evaluations and purchase intention. It is found that made-in cues have significant impacts on quality evaluation while brand origin cues influence purchase intention more prominently. Product quality is perceived lower when a brand from developed country is manufactured in developing countries, however, this may not affect consumers’ purchase intentions.
  • A research on impairment of assets in listed fi rms with negative earnings in China
    DAI Deming, MAO Xinshu, DENG Fan
    2007, 1(3): 351-364. https://doi.org/10.1007/s11782-007-0020-1
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    Economic factors, such as the adverse change of the industry and performance of firms, are associated with the impairment of assets reported by these firms. Listed firms with negative earnings were more likely to write off substantial assets in consecutive years, but not in the initial years of loss. However, the relationship between the impairment of assets and economic factors is insignificant after the individual effect of the firms is taken into consideration, while earnings management factors still have a significant effect on the impairment of assets, yet the difference between loss years and profitable years is insignificant.
  • Why TNCs try to make their subsidiaries sole proprietorship enterprises in China? —An analysis of TNCs’ strategy on equity ownership structure
    LI Wei′an, LI Baoquan
    2007, 1(3): 365-377. https://doi.org/10.1007/s11782-007-0021-0
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    A review on the evolution of the Transnational Corporations’ (TNCs) equity ownership structure in their subsidiaries in recent 20 years reveals an increasingly clear preference for sole proprietorship. Based on results of the prior researches, this paper presented a two-stage evolutionary model to explain the underlying reasons of the tendency in China. It is shown that the TNCs’ strategic choice for their subsidiaries  equity ownership structure is a decision-making process and result, which makes the parent company, as the principal part, based on the current business strategies of the parent company (local or global integration) at the premise of the investment environment of host country, pursue possibly unproductive receipts by choosing or changing the structure of the equity ownership.
  • Exploration and test of a model of employees’ voluntary turnover in China
    LIU Bing, PENG Lai
    2007, 1(3): 378-384. https://doi.org/10.1007/s11782-007-0022-z
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    By collecting a nationwide sample, the model of employee voluntary turnover in China is explored. There are three conclusions: 1. there exist significant correlation between any two variables including salary, job involvement, interpersonal support, job satisfaction, organizational commitment and turnover intention; 2. job involvement, interpersonal support and salary predict significantly organizational commitment, and interpersonal support and salary predicted significant job satisfaction; 3. job satisfaction can predict significantly turnover intention.
  • Audit committee, board characteristics and quality of fi nancial reporting: An empirical research on Chinese securities market
    WU Qinghua, YIN Junming, WANG Pingxin
    2007, 1(3): 385-400. https://doi.org/10.1007/s11782-007-0023-y
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    Board independence and the board’s expertise characteristics are key factors influencing the quality of financial reporting. Companies, having a higher percentage of independent directors, having independent financial directors, or having an audit committee on board are more likely to generate quality accounting earnings information. Variables representing board behavior characteristics, namely, ratio of shares owned by the board, board meeting frequency within a year, and the number of independent directors holding posts concurrently in the controlling shareholder s company, are not significantly related to the quality of financial reporting. Board meeting frequency is even abnormally negatively related to the quality of financial reporting.
  • An empirical study on brand strategy decisions in Chinese companies based on environmental uncertainties and entrepreneurial orientation
    WANG Tao, GUO Rui
    2007, 1(3): 401-421. https://doi.org/10.1007/s11782-007-0024-x
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    This study investigate factors affecting brand strategic decisions in Chinese companies in regard to two factors: environmental uncertainty and entrepreneurial orientation, with the model of environmental management strategies. Based on prior literature and empirical analysis, this study proposes a contingency framework, which indicated that under what conditions Chinese companies prefer to adopt what kind of brand strategies, such as own-brand manufacturing, acquired brand, licensed brand and original equipment manufacturing/original design manufacturing.
  • Non-circulating equity and excessive equity fi nancing
    ZHENG Zuxuan, ZHOU Ye, LI Da, ZHAO Tao
    2007, 1(3): 422-436. https://doi.org/10.1007/s11782-007-0025-9
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    In the Chinese stock market, the price of exchangeable stock is determined by the discounted future uncertain cash flow, while the price of non-circulating stock depends on per book value. In general, because investors holding non-circulating equity maintain the control power, corporate finance and investment decisions reflect their interests. The pricing mechanism of non-circulating stock violates the basic pricing principle of the capital market. Therefore, corporate finance decisions deviate from the NPV (net present value). As a result, excessive equity financing problems would occur in the listed companies.
  • Shareholder wealth effect of dividend policy: Empirical evidence from the Chinese securities market
    YI Yanxin, KE Dagang, ZHANG Xiao
    2007, 1(3): 437-455. https://doi.org/10.1007/s11782-007-0026-8
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    Based on the special separated equity management structure of the listed companies in China and using a sample of the listed companies with distributed dividend in 2003 and 2004, this paper tests the shareholder wealth effects of dividend policy in Chinese separated equity market. Results show that shareholders of non-circulating stock get a high return rate by cash dividends, and circulating shareholders obtain a high short-term return rate by stock dividends.
  • An analysis of the characteristics of Chinese listed companies’ independent director system
    TAN Jinsong, LI Minyi, LI Wenjing, ZHENG Heng, WU Jianlin, LIANG Yu
    2007, 1(3): 456-481. https://doi.org/10.1007/s11782-007-0027-7
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    From three different perspectives, namely, the basic characteristics of independent directors, the percentage of independent directors on board and its relation to company performance, and the remuneration for independent directors and its relation to company performance, we could summarize implementation characteristics of the independent director institution in China: the age distribution of independent directors is relatively even and the majority of them are academic staff and researchers with business administration backgrounds; a positive relationship between the independent director s remuneration and company performance, as well as between the number of independent directors on board and the company performance.