We investigate whether foreign institutional investors facilitate firm-specific information flow in the global market. Specifically, using annual institutional ownership data from firms across 40 countries, we find that foreign institutional ownership is negatively associated with excess stock return comovement. Our results are more pronounced when foreign institutional investors originate from common-law countries and hold a large equity stake in invested firms; and when the invested firms are located in civil-law countries. Overall, the evidence suggests that foreign institutional investors from countries with strong investor protection play an important informational role in mitigating excess stock return comovement around the world.
Using a sample of Chinese family firms listed from 1999 to 2014, we investigate the relationship between non-family leadership and firm performance. We find that firms with a non-family member as board chair perform significantly worse than firms whose chair belongs to the family. Moreover, we show that the underperformance of nonfamily-chair firms is more pronounced when firms are under weaker outside monitoring and when the controlling families care less about family business longevity. The negative effect of a non-family chair is robust to a variety of endogeneity tests. We also dismiss alternative explanations other than concern for reputation. Overall, our empirical results suggest that the social norms regarding family reputation are important in shaping the controlling shareholders’ expropriation incentives and firm performance.
Drawing upon the conservation of resources theory (Hobfoll, Am Psychol 44:513–524, 1989), social exchange theory (Blau, Exchange and power in social life, 1964)and the job demand-control model (Karasek, Adm Sci Q 24:285–308, 1979), this studyuncovers the theoretical mechanism that explains the relationship between workfamily conflict and organizational citizenship behavior (OCB). First, this study focuses on how employee job satisfaction mediates the relationship. Then, we investigate the moderating role of decision authority in the mediated relationship. We employ three-wave data collected from 324 employees in 102 teams to test our hypotheses. Results of hierarchical linear modeling (HLM) first shows that job satisfaction mediates the relationship between work interference with family (WIF) and OCB. In addition, employees’ decision authority moderates the direct effect of WIF on OCB. Specifically, the negative relationship between WIF and OCB is stronger when employees’ decision authority is high. Moreover, decision authority moderates the indirect effect of WIF on OCB via job satisfaction. Specifically, the negative relationship between WIF and job satisfaction is weaker when employees’ decision authority is high. The results suggest that organizations should give employees enough decision authority over their work, as a high level of decision authority may act as a double-edged sword regarding critical organizational outcomes.
Based on R&D investment data from Chinese listed manufacturing firms, this paper examines the effect of R&D spending on firms’ future performance conditional on their strategic positions. We find that firms pursing a product differentiation strategy have more R&D spending than those with a cost leadership strategy. In addition, we document a positive effect of R&D spending on firms’ future performance if they adopt a product differentiation strategy. Meanwhile, for the firms that adopt a cost leadership strategy, the relationship between R&D spending and firm performance resembles an inversed U-shape. Furthermore, we find this inversed U-shape relationship only exists for non-state-owned firms. Overall, this paper provides guidance and useful suggestions on the efficient allocation of R&D resources for Chinese manufacturing firms.
Introduction: Thermal power plants are very popular in China. However, there has not been proportional research attention paid to production risk in these plants and human impact on production due to their importance in electricity generation. This study investigates production risks caused by human factors in thermal power plants and management methods to address identified human factors. Case description: Eighteen semi-structured interviews with front-line, middle and senior managers from four thermal power plants in China were carried out in this cross-sectional inductive study. Fault tree analysis and causal network analysis are used. Discussion and evaluation: We identify a range of production risks and human factors potentially influencing production in both negative and positive ways. We also recognize the most effective and practical relevant management methods to deal with identified human factors. Conclusion: By investigating production risk caused by human factors through the whole production process, this study emphasizes working attitude, safety consciousness, creativity and awareness of environmental protection as essential human factors potentially influencing production risks in thermal power plants. Through our analysis, by linking human factors to different types of production risk and supplying corresponding management methods to address these human factors, we offer practical human resource management approaches in the production management of thermal power plants.