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- Publisher Website: 10.1016/j.jwb.2019.02.001
- Scopus: eid_2-s2.0-85061629904
- WOS: WOS:000466622000003
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Article: Unfolding China’s state-owned corporate empires and mitigating agency hazards: Effects of foreign investments and innovativeness
Title | Unfolding China’s state-owned corporate empires and mitigating agency hazards: Effects of foreign investments and innovativeness |
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Authors | |
Keywords | Empire building Agency hazards Institutional theory State-ownershipInnovativeness Foreign capital |
Issue Date | 2019 |
Publisher | Pergamon. The Journal's web site is located at http://www.elsevier.com/locate/jwb |
Citation | Journal of World Business, 2019, v. 54 n. 3, p. 191-212 How to Cite? |
Abstract | Integrating agency and institutional perspectives, we describe how China’s socio-political institutions create state-owned corporate empires with unique agency conflicts. We develop a framework demonstrating how economically unjustified firm expansion, i.e. empire building, mediates the relationship between state ownership and performance. We uncover the instrument in empire building and appropriate corporate governance and strategic management remedies. An empirical study on 29,638 Chinese firms evidences that (1) increased state ownership drives higher management expenses and lower firm profitability though empire building; (2) long-term debt is used to finance empire building; and (3) foreign capital investments and innovativeness can mitigate these agency conflicts. |
Persistent Identifier | http://hdl.handle.net/10722/279002 |
ISSN | 2023 Impact Factor: 8.9 2023 SCImago Journal Rankings: 3.490 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Zhu, J | - |
dc.contributor.author | Tse, CH | - |
dc.contributor.author | Li, X | - |
dc.date.accessioned | 2019-10-21T02:17:49Z | - |
dc.date.available | 2019-10-21T02:17:49Z | - |
dc.date.issued | 2019 | - |
dc.identifier.citation | Journal of World Business, 2019, v. 54 n. 3, p. 191-212 | - |
dc.identifier.issn | 1090-9516 | - |
dc.identifier.uri | http://hdl.handle.net/10722/279002 | - |
dc.description.abstract | Integrating agency and institutional perspectives, we describe how China’s socio-political institutions create state-owned corporate empires with unique agency conflicts. We develop a framework demonstrating how economically unjustified firm expansion, i.e. empire building, mediates the relationship between state ownership and performance. We uncover the instrument in empire building and appropriate corporate governance and strategic management remedies. An empirical study on 29,638 Chinese firms evidences that (1) increased state ownership drives higher management expenses and lower firm profitability though empire building; (2) long-term debt is used to finance empire building; and (3) foreign capital investments and innovativeness can mitigate these agency conflicts. | - |
dc.language | eng | - |
dc.publisher | Pergamon. The Journal's web site is located at http://www.elsevier.com/locate/jwb | - |
dc.relation.ispartof | Journal of World Business | - |
dc.subject | Empire building | - |
dc.subject | Agency hazards | - |
dc.subject | Institutional theory | - |
dc.subject | State-ownershipInnovativeness | - |
dc.subject | Foreign capital | - |
dc.title | Unfolding China’s state-owned corporate empires and mitigating agency hazards: Effects of foreign investments and innovativeness | - |
dc.type | Article | - |
dc.identifier.email | Li, X: xuli1@hku.hk | - |
dc.identifier.authority | Li, X=rp01615 | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.jwb.2019.02.001 | - |
dc.identifier.scopus | eid_2-s2.0-85061629904 | - |
dc.identifier.hkuros | 308018 | - |
dc.identifier.volume | 54 | - |
dc.identifier.issue | 3 | - |
dc.identifier.spage | 191 | - |
dc.identifier.epage | 212 | - |
dc.identifier.isi | WOS:000466622000003 | - |
dc.publisher.place | United Kingdom | - |
dc.identifier.issnl | 1090-9516 | - |