Is There Hope for Firms Facing the Technology Gap? A case of China's mobile industry

We have examined the way in which local firms in China's handset industry, confronted with a technology gap, have achieved growth, using the concept of boundaries of the firm. Chinese local firms have lacked technology, and have therefore turned to outside firms for development, design, and manufacturing in some cases. On the other hand, they themselves have focused on sales and marketing, using their advantage of familiarity with the home market. Consequently, by establishing a growth condition in which their selection of boundaries counterbalances the technology gap, they have been able to expand their market shares in comparison with foreign firms.     

Can Trade Green China? Participation in the global economy and the environmental performance of Chinese firms

How does participation in the global economy influence the pollution management practices of firms in a developing country? Research on trade and the environment leads one to anticipate that integration into the international economy should enhance domestic firm environmental behavior. Integration facilitates access to cleaner technology, exposes domestic firms to global norms of corporate environmentalism, and compels developing country firms to meet trading partners' environmental standards or risk losing market access. This article tests these propositions by exploring the environmental compliance of internationally oriented firms in China—a country whose rapid economic expansion and increasingly prominent role as a foreign investor have considerable implications for protection of the global environment. It finds that there is only modest market-induced enhancement of environmental performance among Chinese companies. In terms of their compliance with environmental law, Chinese firms with connections to the global economy are either no better than domestically oriented companies or, in the case of firms that export heavily, are worse.     

Cross-Border Mergers and Acquisitions by Chinese Firms: value creation or value destruction?

Mixed results from studies on Chinese cross-border mergers and acquisitions (M&;As) have been a puzzle for both academia and business professionals over the years. Do these M&;As create value when Chinese firms acquire foreign target firms suffering heavy losses and even on the verge of bankruptcy? This article explores the wealth effect of M&;As conducted by Chinese firms as well as the relevant factors from the asset-seeking perspective. The authors use 180 M&;A cases conducted by listed firms in China between 2002 and 2012 as samples and examine their wealth effects in a method of event study. The results show that these M&;A activities have produced significant positive wealth effects during the event window of [–10, 10]. The authors then study the key factors affecting wealth effects. The findings reveal that an acquiring firm’s strength via research and development (R&;D) and M&;A experience generates significant positive impacts on the wealth effect. The findings also reveal that an innovation orientation and development stage of host countries helps create positive wealth effects; vertical M&;As are particularly favored by the market since they can gain easier access to R&;D, marketing channels or mineral resources.     

Who Pollutes? Ownership type and environmental performance of Chinese firms

What is the relationship between ownership type and environmental performance in Chinese firms? Using a survey of over 1,000 industrial firms in 12 Chinese cities in 2006, this article tests a number of competing hypotheses linking ownership type to environmental performance. The results show that small and medium state-owned enterprises (SOEs) on average spend less on pollution abatement technologies and are less likely to meet national emissions standards, compared to privately owned enterprises (POEs) and foreign invested enterprises (FIEs). However, the environmental performance of the largest SOEs matches that of their private and foreign counterparts. These findings are complemented by qualitative interviews and archival research conducted in 2012.     

An Empirical Study of Chinese Large Shareholders’ Behavior under the Background of the Split Share Structure Reform

Using the data on related-party transactions between Chinese publicly listed firms and their controlling shareholders in 2005, this article empirically examines the characteristics of related-party transactions and their impact on the firms’ performance. The results show that the companies that completed related-party transactions with their large shareholders possess a higher concentration of ownership structure and lower P/E ratios, and their performance is significantly improved after these transactions. The current related-party transaction is also not used to achieve the necessary requirements for refinancing and the tunneling behavior of large shareholders follows a significant declining trend. Further regression analysis shows that the size of related-party transactions is positively correlated with the large shareholders’ equity ratio, and is negatively related to the P/E ratio and the performance of listed companies prior to the transactions. Finally, the research reveals that Chinese listed company performance has a significant positive correlation with the size of related-party transactions and the large shareholders’ equity ratio. Since China launched the split share structure reform (SSSR) in 2005, we have attributed all the above results to the change in the environment caused by the SSSR and concluded that large shareholders prop up a listed company through related-party transactions.     

The Changing Limits and the Limits of Change: the state,private firms,international industry and China in the evolution of Taiwan's electronics industry

This paper examines the changing role of the state and private enterprise in Taiwan's electronics industry as the industry responds to growth of intra-firm capabilities and the rise of China as a manufacturing base. The industry has a sharp dichotomous outcome between the technologically strong IC sector, which has been able to create interdependence with global lead firms, and the systems manufacturing firms, which find themselves trapped in a dependent position vis-à-vis the global lead firms. Due to different positions in global value chains, the IC industry firms have been better able to create advantages out of the opportunities of new firm capabilities and China than the systems firms even as the balance of policy has shifted somewhat away from the state and towards private enterprise.     

关于生物资源开发与可持续发展的博弈分析

通过对生物资源开发与可持续发展所涉及的核心利益相关者（环保部门和农户或企业）的动态博弈分析,得到均衡解,并对均衡解围绕其经济利益展开,进一步分析得到众多结论：农民（企业）在收益下降时会加大对生物资源的不可持续开发;政府、公众和舆论媒体要加大对环保部门的监督;环保部门在存在寻租的情况下,偏向降低处罚力度,让农户过度开发,从中得到贿赂;要确保生物资源合理利用而不被毁灭性的开发,政府部门除了监管要到位,还要对为保护生物资源而承受的贫困给予补偿等。     

MARKET WATCH

While the stock markets regain their momentum this year,China's securities regulators have issued new rules for public list-ings of start-up enterprises.Chinese fund management firms had their most difficult year on record in 2008,losing a total of 1.5 trillion yuan($219 billion) because of the meltdowns in the domestic stock markets.The country's central bank is sticking to its appropriately accommoda-tive monetary policy by refraining from withdrawing cash from the open market and issuing fewer central ba...     

MARKET WATCH

Foreign brands dominate China’s milk powder market, dealing a heavy blow to domestic manufacturers. China boosts iron ore production, but the country still relies on imports. Chinese firms accelerate their pace of going global. The logistics industry bursts with vitality, but low profitability remains a problem. The accounting firm KMPG cautions about the waning competitive edge of China’s manufacturing industry. By HU YUE     

Spillover Effects of FDI via Exports on Innovation Performance of China's High-Technology Industries

Since economic reforms began in 1979, China has sought to overcome the technology gap by absorbing foreign advanced technology through FDI. This paper investigates the impact of FDI via exports on the innovation performance of domestic firms in China's high-tech product industries for the period 1995–2006. By using the panel data analysis, we confirm the hypotheses that: (1) exports of domestic firms have positive spillover effects on innovation performance of local firms either through learning or through competition; (2) R&D activities of foreign-invested enterprises in the host country in an industry are positively associated with innovation performance of domestic firms in that industry; and (3) import of technology, which is important to the establishment of assimilative capability, has positive effects on domestic innovation performance. This provides evidence suggesting that China's domestic firms benefit from spillovers associated with FDI and from export activity of both domestic firms and foreign-invested enterprises.     

MARKET WATCH

<正>Dividend Regulation The China Securities Regulatory Commission (CSRC), on November 9 issued a circular, requiring listed companies to distribute more cash dividends to shareholders in an effort to protect investors’ interests.     

论我国特殊的普通合伙制律师事务所的现状与前景

特殊的普通合伙制无疑是近十年来我国立法在专业服务机构组织形式上的一大创举。特殊的普通合伙制律师事务所优势在于专业化、规模化、国际化。特殊的普通合伙制律师事务所小众化的主要原因是设立条件较高、关于法律责任承担存在错误认识等。解决之道是:建立"直索责任"规则;改良律师事务所年检制度;完善法规,政策支持。如此,特殊的普通合伙制中国律师事务所则必有光明的未来。     

论企业的激励机制

在企业生存和发展过程中,激励机制起了关键性的作用,如何运用好激励机制也就成为各个企业面-临的一个十分重要的问题。企业一定要重视对员工的激励,根据实际情况,综合运用多种激励机制,把激励的手段和目的结合起来,改变思维模式,真正建立起适应企业特色、时代特点和员工需求的开放的激励体系。     

Slick Prospects

As a pillar of the country's financial system, Chinese banks are playing a bigger role in economic revitalization and rebalancing. But challenges still lie ahead on their path of financial reform and global expansion. Bankers from home and abroad discussed these issues at the Institute of International Finance (IIF) Spring Membership Meeting held on June 10-12 in Beijing. The IIF is a leading global association of financial service firms with more than 360 members across the world. Edited excerpts of the ba...     

MARKET WATCH

China slashes import duties on 33 items,a move expected to stimulate imports and benefit a series of relevant sectors.Growth of industrial profits is slowing down due to costs inflation and tightening monetary policies.Foreign banks operating in China see a rosy future for their businesses.Mounting debt poses risks to local governments.By closing 56 unlicensed express delivery firms,China aims to streamline the crowded and chaotic industry.Suning takes majority control of the Japanese company Laox as the Chinese appliance retailer expands abroad.     

台资企业网络形态分析--以汕头市纺织业台资企业为例

本文选择汕头市纺织业台资企业为对象，开展实地凋查，分析台资企业网络形态，探讨台资企业与当地企业的互动关系。研究结果表明，汕头市台资企业网络密度低，开放性明显，与本地企业形成了简单的分工格局，经济交易比较频繁。我们将上述研究发现与东莞、苏州等地台资企业的调查结果进行比较，探讨各地台资企业网络之间的差异及其原因，指出大陆地区台资企业网络的封闭性与开放性并没有绝对的优劣之分，必须结合其他影响因素进行综合分析。     

Returnee Entrepreneurs: impact on China's globalization process

Recent research on returning Chinese students has focused on their role as an alternative solution to their home country's mandate to build technological capacity. This study shows the depth of the ‘brain circulation’ that is underway and the fact that overseas students are not only serving China from abroad or by returning, but after they return they play a leading role in many aspects of China's ‘going out’ strategy. These returnee entrepreneurs present many advantages to the Chinese economy. They have studied at the best universities in the world, were deeply involved in the New Economy, and have gained valuable experience in listed companies overseas. They often possess venture capital, many have experience working with some of the best MNCs in the world, and they serve to contribute enormously to China's current economic engagement with the world. The paper describes the returnees' impact on China's globalization drive and analyzes the factors leading to their success in comparison to MNCs and indigenous Chinese firms.     

Leverage,Technical Efficiency and Profitability: an application of DEA to foreign-invested toy manufacturing firms in China

Based on a representative sample of the 238 largest foreign-invested toy manufacturing firms in southern China by output value, we adopted a two-stage approach to examine the role of leverage on firm performance as measured by technical efficiency, and the effect of efficiency on profitability. In the first stage, we use data envelopment analysis (DEA) to estimate the technical efficiency of the sample firms. In the second stage, we conduct a regression analysis to study the effects of leverage on efficiency and of efficiency on profitability. Our empirical results support the view that leverage has a positive effect on firm technical efficiency and that there is a positive relationship between technical efficiency and profitability.     

Leveling the Field

China furthers anti-monopoly regulation for sound competition The State Administration for Market Regulation(SAMR) has recently imposed administrative penalties on 12 companies conducting 10 deals, signaling strengthening of anti-monopoly regulation on domestic firms, especially Internet-based platforms. The penalties were announced on March 12, the day after the close of China’s annual legislative session, during which proposals to amend the AntiMonopoly Law were contemplated.