The impact of corporate political connections and executive’s international experience on Chinese firms’ initial public offerings in the USA

2019 ◽  
Vol 12 (3) ◽  
pp. 431-450
Author(s):  
Muhammad Amin ◽  
Jianfeng Wu ◽  
Md Ziaul Haque
Keyword(s):  
Initial Public Offerings ◽  
Work Experience ◽  
International Experience ◽  
Political Connections ◽  
Chinese Firms ◽  
Content Type ◽  
International Work ◽  
The Usa ◽  
Foreign Ipos ◽  
The Impact

Purpose Integrating social network theory with signaling theory, the purpose of this research is to examine the impact of corporate political connections and executive’s international experience on Chinese firms initial public offerings (IPOs) performance in the USA. Design/methodology/approach This study used Securities Data Company (SDC) New Issues database to identify all Chinese firms that went public in the USA between 2003 and 2014. Consistent with previous research, IPO firms excluded from the sample include merger or acquisitions, spin-offs and initial stage listed firms. The final sample size is of 142 Chinese foreign IPOs in the US markets. Findings This study finds that firms with political connections perform significantly poor than firms without political connections. It shows that US stock markets react to the signals of political connections of Chinese foreign IPOs. In response, the Chinese foreign IPOs can signal international work experience of top executives to US investors. The results show that the executives’ international work experience has significant positive relationships on foreign IPO performance of Chinese firms. Moreover, this study finds that the interaction between corporate political connections and international experience pursues positive effects on the performance of foreign IPOs. Originality/value This research intends to extend the knowledge of how corporate political connections and international work experience affects the performance of Chinese firms attempting to access US capital markets. To date, scholars have not investigated the influence of corporate political connections on the amount of capital raised by foreign IPOs.

Breaking a promise never made: managing employee expectations at Rococo LLC

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yemisi F. Awotoye ◽  
Christopher C. Stevens
Keyword(s):  
Organizational Behavior ◽  
Work Environment ◽  
Work Experience ◽  
Theoretical Basis ◽  
Content Type ◽  
Telephone Interviews ◽  
Academic Level ◽  
The Usa ◽  
Perceptions And Expectations ◽  
The Impact

Theoretical basis The case primarily revolves around the establishment, alignment and maintenance of expectations within a work environment. Specifically, the case focuses on the challenges that were created by the expectations that Kofi Nyarkoh had of his employee, Kwame Owusu, and the expectations that Kwame in turn formed based on the process surrounding his employment relationship with Kofi. The case is intended to help students assess a business situation and define the perceptions and expectations of stakeholders; assess the impact of differences in perceptions and expectations on the attitudes, behaviors and motivation in the workplace and develop appropriate recommendations. Research methodology The case was written based on a combination of field and telephone interviews and other communication between one of the authors and Kofi. Case overview/synopsis The case presents the story of Rococo LLC's founder and one of his key employees. Both men were originally from Ghana. They met in the USA through a mutual friend, and Kofi hired him to work on a client site for Rococo LLC despite Kwame's insufficient work experience. Complexity academic level This case is intended for students of organizational behavior, human resource management and management both at advanced undergraduate and graduate levels.

Signaling value of top management team

2019 ◽  
Vol 13 (3) ◽  
pp. 531-549 ◽  
Author(s):  
Muhammad Amin ◽  
Jianfeng Wu ◽  
Rungting Tu
Keyword(s):  
Top Management Team ◽  
Top Management ◽  
Functional Heterogeneity ◽  
Chinese Firms ◽  
Upper Echelon ◽  
Content Type ◽  
Ipo Performance ◽  
The Us ◽  
The Usa ◽  
Foreign Ipos

Purpose The purpose of this paper is to integrate the upper echelon theory with signaling theory and examine the impact of top management team (TMT) on the initial public offering (IPO) performance of Chinese firms in the USA. Design/methodology/approach This study used Security Data Corporation (SDC) that is a central database for foreign IPOs in the USA. The authors identified 142 Chinese firms that issued stocks on the US markets between 2003 and 2014. This study used firm’s final prospectuses to collect data manually. Findings This study finds that the TMT characteristics such as functional heterogeneity and international exposure convey the positive signal of firm’s legitimacy to the US investors and increase the IPO performance. Originality/value This study extends the upper echelon perspective that has previously overlooked the signaling value of TMT characteristics in the foreign IPO studies. The top management plays an important role to the firm’s successful foreign market listing. Since China joined the WTO in 2001, a large number of Chinese firms have started IPOs in the USA, but there is a dearth of research on these firms. This study aims to contribute to the study of international business and management and describes that the TMT functional heterogeneity and international exposure have a significant role in the success of Chinese foreign IPOs.

The impact of labor freedom on geographic cost of living differentials

2017 ◽  
Vol 6 (3) ◽  
pp. 385-395
Author(s):  
Richard Cebula ◽  
James E. Payne ◽  
Donnie Horner ◽  
Robert Boylan
Keyword(s):  
Labor Market ◽  
State Level ◽  
The State ◽  
Annual Data ◽  
Significant Finding ◽  
Cost Of Living ◽  
Content Type ◽  
The Usa ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of labor market freedom on state-level cost of living differentials in the USA using cross-sectional data for 2016 after allowing for the impacts of economic and quality of life factors. Design/methodology/approach The study uses two-stage least squares estimation controlling for factors contributing to cost of living differences across states. Findings The results reveal that an increase in labor market freedom reduces the overall cost of living. Research limitations/implications The study can be extended using panel data and alternative measures of labor market freedom. Practical implications In general, the finding that less intrusive government and greater labor freedom are associated with a reduced cost of living should not be surprising. This is because less government intrusion and greater labor freedom both inherently allow markets to be more efficient in the rationalization of and interplay with forces of supply and demand. Social implications The findings of this and future related studies could prove very useful to policy makers and entrepreneurs, as well as small business owners and public corporations of all sizes – particularly those considering either location in, relocation to, or expansion into other markets within the USA. Furthermore, the potential benefits of the National Right-to-Work Law currently under consideration in Congress could add cost of living reductions to the debate. Originality/value The authors extend the literature on cost of living differentials by investigating whether higher amounts of state-level labor market freedom act to reduce the states’ cost of living using the most recent annual data available (2016). That labor freedom has a systemic efficiency impact on the state-level cost of living is a significant finding. In our opinion, it is likely that labor market freedom is increasing the efficiency of labor market transactions in the production and distribution of goods and services, and acts to reduce the cost of living in states. In addition, unlike previous related studies, the authors investigate the impact of not only overall labor market freedom on the state-level cost of living, but also how the three sub-indices of labor market freedom, as identified and measured by Stansel et al. (2014, 2015), impact the cost of living state by state.

Policy and institutions facilitating entrepreneurial spin-offs: USA, Asia and Europe

2014 ◽  
Vol 3 (2) ◽  
pp. 186-196 ◽  
Author(s):  
Rosa Caiazza ◽  
David Audretsch ◽  
Tiziana Volpe ◽  
Julie Debra Singer
Keyword(s):  
Institutional Setting ◽  
Policy Debate ◽  
Content Type ◽  
Factors Affecting ◽  
Institutional Settings ◽  
The Usa ◽  
New Perspective ◽  
National Analysis ◽  
The Impact ◽  
Cross National

Purpose – Existing work documents the role that institutional setting plays in the process of spin-off creation. However, despite decades of studies, scholars have not clearly explained why some regions are more involved in spin-off activity than others. Drawing from institutional theory, the purpose of this paper is to compare different institutional settings identifying factors affecting the general environment capability to support spin-off activity of a specific region. Design/methodology/approach – The authors utilize a cross-national analysis of American, Asian, and European areas identifying factors affecting their different rate of spin-off activity. This study contributes to the policy debate concerning entrepreneurship and how best to spur spin-off activities. Findings – In this paper, the authors identify the general and specific factors that explain the cross-national diversity in spin-off creation. The authors then perform an analysis of the impact of these factors in various regions of the USA, Asia, and Europe, providing evidence for the necessity of specific combinations of these factors. Originality/value – The paper offers a new perspective on the causes of spin-offs through a cross-national analysis of many areas around the world.

Audit committee characteristics and the moderating effect of Malaysian code of corporate governance on IPO liquidity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amal Mohammed Al-Masawa ◽  
Rasidah Mohd-Rashid ◽  
Hamdan Amer Al-Jaifi ◽  
Shaker Dahan Al-Duais
Keyword(s):  
Corporate Governance ◽  
Initial Public Offerings ◽  
Audit Committee ◽  
Ordinary Least Squares ◽  
Moderating Effect ◽  
Least Squares Regression ◽  
Content Type ◽  
Code Of Corporate Governance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the link between audit committee characteristics and the liquidity of initial public offerings (IPOs) in Malaysia, which is an emerging economy in Southeast Asia. Another purpose of this study is to examine the moderating effect of the revised Malaysian code of corporate governance (MCCG) on the link between audit committee characteristics and IPO liquidity. Design/methodology/approach The final sample consists of 304 Malaysian IPOs listed in 2002–2017. This study uses ordinary least squares regression method to analyse the data. To confirm this study’s findings, a hierarchical or four-stage regression analysis is used to compare the t-values of the main and moderate regression models. Findings The findings show that audit committee characteristics (size and director independence) have a positive and significant relationship with IPO liquidity. Also, the revised MCCG positively moderates the relationship between audit committee characteristics and IPO liquidity. Research limitations/implications This study’s findings indicate that companies with higher audit committee independence have a more effective monitoring mechanism that mitigates information asymmetry, thus reducing adverse selection issues during share trading. Practical implications Policymakers could use the results of this study in developing policies for IPO liquidity improvements. Additionally, the findings are useful for traders and investors in their investment decision-making. For companies, the findings highlight the crucial role of the audit committee as part of the control system that monitors corporate governance. Originality/value To the authors’ knowledge, this work is a pioneering study in the context of a developing country, specifically Malaysia that investigates the impact of audit committee characteristics on IPO liquidity. Previously, the link between corporate governance and IPO liquidity had not been investigated in Malaysia. This study also contributes to the IPO literature by providing empirical evidence regarding the moderating effect of the revised MCCG on the relationship between audit committee characteristics and IPO liquidity.

The impact of the institutional environment and experience on social entrepreneurship: a multi-group analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ezlika M. Ghazali ◽  
Dilip S. Mutum ◽  
Haleh Hakim Javadi
Keyword(s):  
Social Support ◽  
Social Work ◽  
Social Workers ◽  
Social Entrepreneurship ◽  
Work Experience ◽  
Structural Equation ◽  
Group Analysis ◽  
Social Entrepreneurs ◽  
Content Type ◽  
The Impact

PurposeThis study presents a framework for integrating distinct perspectives on social entrepreneurship by combining institutional theory with the social entrepreneurship intention model. The framework assesses the relationships between social support and the perceived feasibility and desirability of social entrepreneurship, the relationships between social support and the institutional environments of social workers, and the moderating role of prior experience of social work and volunteering.Design/methodology/approachThe model was tested using 266 validated responses from an online and paper-based survey distributed among social workers. Partial least squares structural equation modelling was used to analyse the data, and multi-group analysis was conducted to examine the moderation effects.FindingsThe findings indicate that experience moderates the relationships between the regulatory and cognitive environments, cognitive environments and social support, and social support and perceived feasibility. Experience negatively moderates the relationship between the normative environment and social support.Practical implicationsActive government involvement in the form of incentives and financial support would encourage the creation of social ventures.Social implicationsEducational programmes are also necessary to help raise awareness and increase the familiarity and knowledge of potential social entrepreneurs.Originality/valueThe study analyses the effects of institutional environmental components, recognised as highly influential on the development of social entrepreneurship, as well as the impact of perceived social support on the antecedents of the perceived desirability and feasibility of social entrepreneurship. It also addresses how social work experience modifies these relationships. Contrary to previous studies, the findings suggest that increasing social work experience isolates entrepreneurs from their environment.

Are atheist consumers less ethical? Investigating the role of religiosity and atheism on consumer ethics

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Denni Arli ◽  
Tuyet-Mai Nguyen ◽  
Phong Tuan Nham
Keyword(s):  
Consumer Ethics ◽  
Intrinsic Religiosity ◽  
Content Type ◽  
Ethical Behaviors ◽  
Segmentation Analysis ◽  
Study Results ◽  
Unethical Behaviors ◽  
The Usa ◽  
Using Data ◽  
The Impact

Purpose There is a perception that non-religious consumers are less ethical than religious consumers. Studies found prejudices against atheists around the world and assumed that those who committed unethical behavior were more likely to be atheists. Hence, first, the purpose of this study is to investigate the effect of consumers’ intrinsic religiosity, extrinsic religiosity and atheism on consumers’ ethical beliefs. Second, this study attempts to segment consumers and identify differences between these segments. Design/methodology/approach Using data from 235 study participants in the USA and 531 in Vietnam. Subsequently, a two-step cluster approach was used to identify segments within these samples. Findings The study results show consumers’ intrinsic religiosity negatively influences all consumers’ unethical beliefs. Similarly, atheism also negatively influences all consumers’ unethical beliefs. This study also complements other studies exploring consumer ethics in developing countries. In addition, the segmentation analysis produced unique segments. The results from both samples (USA and Vietnam) indicated that non-religious consumers are less likely to accept various unethical behaviors compared to religious consumers. Religious consumers are not necessarily more ethical and atheism consumers are not necessarily less ethical. In the end, are implications for business ethics, religious and non-religious leaders on how to view the impact of beliefs on consumer ethical behaviors. Originality/value This is one of the first few studies investigating the impact of atheism on consumer ethics. The results of this study further extend the knowledge of study in consumer ethics by comparing consumers’ religiosity and atheism.

Teaching students out of harm’s way

2018 ◽  
Vol 16 (3) ◽  
pp. 290-302
Author(s):  
Esther Charlotte Moon
Keyword(s):  
Technology Integration ◽  
School Districts ◽  
Digital Citizenship ◽  
Digital Environment ◽  
Content Type ◽  
Instructional Content ◽  
Device Integration ◽  
The Usa ◽  
K 12 ◽  
The Impact

Purpose The purpose of this paper is to demonstrate how changes in K-12 educational delivery methods in the USA impacts students as 1:1 device programs become a required tool for learning. This change produces gaps in knowledge and understanding of the digital environment and exposes minors to risk. Mandatory technology integration by school districts places the ethical responsibility on school districts to prepare students to use the digital environment to mitigate risk. Design/methodology/approach The author’s literature review focused on the impact of personal device integration in education on students. The author surveyed teachers in the district on what they perceived as risk to students accessing the digital environment and what they believe creates value in digital citizenship instructional content. The author also gathered information while serving on the school district technology steering committee and digital citizenship working group. Findings Mandatory 1:1 device programs used for learning provide unlimited access to the digital environment. This technology integration creates digital knowledge gaps in understanding among students and exposes them to risk or dangers such as loss of privacy, psychological harms and engaging in or being a victim of illegal online activities. School districts are responsible for providing a remedy to close this gap and mitigate risk by developing learning content resources for teachers. Social implications As 1:1 device programs continue to grow in school districts in the USA, it is essential for students to learn to apply protocols and understand norms of the digital world. Providing a digital citizenship curriculum in a format such as a Google Site will offer educators access to instructional content that teaches students to apply protocols, understand norms of the internet and social media and foster critical thinking to analyze power structures, biases and recognize manipulation online. Student must learn how to apply rules that challenge assumptions behind the digital content they see, and they must be able to identify and resolve digital practices and behaviors that are problematic, so they are prepared to participate in a digital society. Originality/value This perspective may be relevant to school districts contemplating personal device integration, providing insight into how 1:1 device use impacts students and develops an ethical position for creating digital citizenship resources for teachers.

Foreign subsidiaries’ competitive strategy: the impact of corporate support and local competition

2017 ◽  
Vol 29 (6) ◽  
pp. 606-627 ◽  
Author(s):  
Anders Pehrsson
Keyword(s):  
Product Differentiation ◽  
Competitive Strategy ◽  
Positive Association ◽  
International Strategy ◽  
Competitive Intensity ◽  
Content Type ◽  
Cost Leadership ◽  
The Usa ◽  
Corporate Support ◽  
The Impact

Purpose The study draws on the resource-based view and the contingency view of strategy. The purpose of this paper is to contribute to international strategy literature by extending the current understanding of foreign subsidiary’s competitive strategy in terms of cost leadership and product differentiation. Design/methodology/approach Hypotheses concern associations between corporate support building on product and skills relatedness and subsidiary strategies. Also, it is hypothesized that strategies are due to the type of local competitive intensity. The hypotheses were tested on wholly owned subsidiaries of Swedish industrial firms in Germany, the UK and the USA. Findings Product and skills relatedness between the subsidiary and the corporate core unit are positively associated with the subsidiary’s emphasis on cost leadership. Also, a positive association was found between skills relatedness and product differentiation, and extensive competitive intensity strengthens the relationship. Research limitations/implications The study specifies what business relatedness is needed for a subsidiary’s competitive strategy; skills relatedness is more important than product relatedness; the type of local competitive intensity is important; corporate support and local strategy operate simultaneously. Practical implications Management is advised to implement a foreign subsidiary’s competitive strategy by recognizing the mechanisms identified in this study. Originality/value In a unique way, the study captures the role of corporate support of a foreign subsidiary’s competitive strategy relying on business relatedness and the importance of aligning the strategy with competitive intensity.

Lending a hand: perceptions of green credit cards

2018 ◽  
Vol 36 (7) ◽  
pp. 1329-1346 ◽  
Author(s):  
Lei Huang ◽  
Julie Fitzpatrick
Keyword(s):  
Social Exchange ◽  
Undergraduate Students ◽  
Credit Card ◽  
Symbolic Interaction ◽  
Environmental Concern ◽  
Credit Cards ◽  
Medium Size ◽  
Content Type ◽  
The Usa ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of donation amount and framing on financial products, this research investigates consumers’ attitudes and behaviors toward cause-related credit cards with different donation sizes and framing types. Design/methodology/approach This research investigates consumers’ perceptions of green credit cards using two experiments with a between-subject design (n =297) and a mixed design (n =238), respectively. All the participants, recruited from a major state university in the USA, are undergraduate students who use credit cards. Findings A medium-size donation optimizes the outcome of a cause-related credit card offer. Moreover, a donation framed as cash rewards has stronger effects on a consumer’s perception and consequent reactions to the “green” credit cards than an annual percentage rate framing. Finally, consumers with high levels of environmental concern and propensity to volunteer have stronger intention to adopt and are more likely to recommend the proposed credit card. Originality/value Building upon the theories of social exchange and symbolic interaction, this research is the first to provide empirical evidence regarding the application of volunteerism and perceived consumer effectiveness for financial institutions and their cause-related marketing campaign partners in selecting suitable environmental causes.

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