Jun 2012, Volume 6 Issue 2

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  • research-article
    Rentao Miao, Jianmin Sun, Xilin Hou, Tianzhu Li

    This study develops and tests a full mediation model that examines the mediating role of job satisfaction in the Chinese context, based on a survey of 424 employees in three small and medium sized enterprises. Data analysis shows a good fit with the full mediation and all four classes of antecedents (i.e., perceived organizational support, procedural, distributive, and interactional justice). Particularly, procedural justice contributes to the prediction of satisfaction. Job satisfaction is also shown to mediate most antecedentconsequence relationships, except the two between perceived organizational support (POS)—turnover and procedural justice—consequences. Furthermore, there are only four direct links, including POS to citizenship behaviors directed at individuals, distributive justice to turnover intention, interactional justice to citizenship behaviors directed at organizations and turnover. These direct links suggest that job satisfaction does not fully mediate the relationships.

  • research-article
    Kangtao Ye, Hang Liu

    The low efficiency of state-owned enterprises (SOEs) is widely accepted by academics. However, the accounting literature shows that non-SOEs are more likely to engage in earnings management, which artificially boosts their financial performance. This suggests that the higher financial performance in non-SOEs may be merely cosmetic. This study compares the real financial performance between SOEs and non-SOEs, while the real performance is obtained by estimating the level of earnings management and removing it from the reported financial performance. The result shows that there is no significant difference in real performance between SOEs and non-SOEs. This study sheds new light on the debate over the efficiency of SOEs and the relationship between ownership structure and financial performance.

  • research-article
    Yungchih George Wang, Wen-Hsi Lydia Hsu, Kuang-Wen Chang

    This study empirically examines the relationship between a firm’s fulfilling of corporate social responsibility (CSR) and performance. We developed a CSR index (CSRI) to quantitatively evaluate CSR, which consists of four dimensions measuring a firm’s contributions to the economy, society, environment, and corporate governance, respectively. With data from publicly-listed firms in Taiwan during the period of 2004–2009, results of quantile regression show that fulfilling CSR has a significantly positive impact on firm performance, and that the impact in a more profitable firm tends to be significantly greater than that in a less profitable firm. Specifically, when a firm is more profitable, its management would be more willing to implement CSR. The implication is that a firm could pursue better performance while serving as a good corporate citizen.

  • research-article
    Wei Wang, Yuchuan Liu, Zhenyu Liao, Jun Liu

    New-entry employees expect to be involved rather than to be marginalized. This paper proposes a model to examine the process through which employees can be exempt from marginalization in their organization as a “political arena.” We argue that an employee, in order not to be marginalized, would like to perform high-quality in-role and extra-role behaviors and also develop good guanxi with his/her immediate supervisor. Moreover, the effects of employee efforts and guanxi on workplace marginalization are moderated by the organization political climate. Two studies were performed to examine the hypothesized model. The pilot study employed a sample of civil servants to develop and validate the measurement of workplace marginalization. The main study collected matched data from 343 employees, 662 of their colleagues, and 343 immediate supervisors. Results of hierarchical linear modeling analysis show that employee job performance, organizational citizenship behavior, and supervisor-subordinate guanxi are negatively related to workplace marginalization. In addition, the negative relationship between guanxi and workplace marginalization is stronger in firms with less organizational politics than those with intensive politics.

  • research-article
    Junwei Shi, Haiyan Fu

    A theoretical framework based on information and embeddedness is constructed to analyze the micro structure of the impact of heterogeneous social capital on corporate performance. It is empirically tested based on data collected from a sample of 155 Chinese firms. Results indicate that hierarchical social capital has a positive association with corporate market power but little impact on corporate operational efficiency. Furthermore, social capital can promote operational efficiency but contribute little to corporate market power. There is a complementary structure between the two types of heterogeneous social capital. The embedded inertia of social capital into institutional environment is negatively related with corporate performance. From the perspective of economic transition, firms in developed regions rely far more on hierarchical social capital to acquire market power than firms in developing areas.

  • research-article
    Shu-hsing Wu

    This study examines whether the reconciliation amounts between IFRS and PRC GAAP provide additional incremental value-relevant information. More specifically, it investigates whether firms applying IFRS experience an increase in the quality of accounting information in the post-IFRS convergence period. Results show that IFRS convergence increases the values of balance-sheet items and enlarges variation across firms. Moreover, there is no difference in the explanatory power of value relevance of accounting information under IFRS and PRC GAAP for share prices and returns of A-shares. The incremental value relevance analysis suggests that the IFRS adjustments to earnings are value relevant, whereas the adjustments to book values are not. The IFRS adjustments to change in inventory are value relevant for predicting future operating cash flows. Finally, accounting quality improved in post-convergence period. These results are robust after controlling for the unique characteristics of Chinese firms.