Mar 2020, Volume 14 Issue 1

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    Yu Hu, Yonggui Wang

    China’s reform and opening up policy initiated by the then leader Deng Xiaoping have undergone a 40-year process since 1978. This period was marked by one of the greatest economic reforms in modern history. In this study, we extract literature focused on the Chinese marketization context and marketing practices published in top-tier international marketing journals and Chinese management journals between 1978 and 2018. This study identifies the research questions and research domains investigated in our selected literature. The authors hope to reveal the general landscape and evolution made in the context of this unique period in Chinese history. This thematically focused literature review provides marketing scholars with a snapshot of the academic marketing research in China and gives rise to novel research directions related to the deepening of the economic reform.

    Kerry Liu

    Chinese consumer finance has been booming recently, especially since 2014. However, research on this topic is scant. This study presents an updated analysis, providing original, significant contributions for academics, investors, and policymakers. We explore five perspectives: (1) macroeconomics: policies adopted by the Chinese government to enhance economic growth through promoting personal consumption; (2) financial market: China’s different types of consumer finance institutions and their financing; (3) consumers: improvements in financial inclusion and consumer protections; (4) regulations in the context of supply-side structural reforms; and (5) potential areas for future academic research.

    Yan Li, Cungang Li, Yijun Gao

    This study investigates the effect of voluntary disclosures on lending decisions in the repeated game. Using a unique dataset from a peer-to-peer lending platform,“ppdai” (paipaidai), we document that voluntary disclosures in the repeated game play a stronger role in promoting funding success than those in the one-shot game. We argue that voluntary disclosures improve the bidding activity in the repeated game through which they increase funding success. In addition, the greater impact of voluntary disclosures on funding success in the repeated game only holds for loans without a personal guarantee attribution. Our extended results suggest that the subjective voluntary disclosures in the repeated game have greater information content only when borrowers have a successful borrowing experience. We also point out that voluntary disclosures in the repeated game are associated with a lower probability of default. Our results are robust to the Heckman two-step estimation that addresses the self-selection effect and a specification designed to rule out the alternative explanation from reputation in the repeated game. Our study provides new insights into the real effects of costless, voluntary and unverifiable disclosures on lending decisions.

    Guodaohou Song, Xiaofang Wang

    Production cost can be influenced by previous sales in an uncertain way. In reality, production cost may decrease in the number of initial buyers due to the learning effect, or increase in the number of initial buyers due to the quality-improving pressure from negative comments of unhappy users. Taking this uncertainty into account, this paper studies the optimal intertemporal pricing strategies of a firm when selling to strategic customers in two periods where production cost in the second period randomly changes with the number of buyers in the first period. Our results suggest how firms should adjust their optimal pricing strategies under different market circumstances.

    Haican Diao, Guoshan Liu, Zhuangming Zhu

    In recent years, with strict domestic financial supervision and other policy-oriented factors, some products are becoming increasingly restricted, including nonstandard products, bank-guaranteed wealth management products, and other products that can provide investors with a more stable income. Pairs trading, a type of stable strategy that has proved efficient in many financial markets worldwide, has become the focus of investors. Based on the traditional Gatev–Goetzmann–Rouwenhorst (GGR, Gatev et al., 2006) strategy, this paper proposes a stock-matching strategy based on bi-objective quadratic programming with quadratic constraints (BQQ) model. Under the condition of ensuring a long-term equilibrium between pairedstock prices, the volatility of stock spreads is increased as much as possible, improving the profitability of the strategy. To verify the effectiveness of the strategy, we use the natural logs of the daily stock market indices in Shanghai. The GGR model and the BQQ model proposed in this paper are back-tested and compared. The results show that the BQQ model can achieve a higher rate of returns.

    Qiang Wang, Chao Wang

    Frontline employees are generally under great pressure, and carry out repetitive and mundane daily tasks, leading to burnout and a high turnover intention among them. To identify ways to reduce this turnover intention, this study examines the effect of perceived organizational support (POS) on burnout and turnover intention in the Chinese context and adds to the literature on frontline employee burnout. Using data from a survey of the frontline employees of a gas station in Beijing, we examine the mediating effects of frontline employee burnout on their POS and turnover intention. This study shows that POS has a significant negative impact on burnout and turnover intention, and that job resources cannot substitute POS.