This article evaluates the international location decisions made by public listed Chinese firms during the period 2006–2008, using a Poisson count data regression model. Further, we categorize the ...firms into state-controlled and privately owned according to majority ownership. We find that the determinants of internationalization differ based on ownership. State-controlled firms are attracted to countries with large sources of natural resources and risky political environments. Private firms are more market seekers. Although all firms have strategic intent, the attraction is commercially viable technology rather than core research content. Our findings also show that existing theories can sufficiently explain the actions of private Chinese firms, but adjustments are needed to understand the behavior of state-controlled multinationals.
Integrating agency theory with institutional analysis in international business, we propose a state-control perspective to analyze government-control mechanisms in emerging economies' globalization ...of state-owned enterprises (SOEs). We identify two types of state control that influence SOEs' globalization decisions and the degree of globalization (DOG): state ownership control and executives' political connections, both of which are contingent upon the home country's evolving institutional environments. Using a two-step corporate globalization decision model and 17,272 firm -year observations of nonfinancial, Chinese-listed companies, we find a strong impact of both types of state control on SOEs' globalization, although the impacts differ between the periods before and after domestic governance reform and across different globalization decision steps. The diminishing impact of executives' political connections and the increasing impact of state ownership control on firms' DOG demonstrate the evolving relationship between the state and the managers, as well as the dynamics of state control in globalizing SOEs.
The rise of innovative firms in emerging market economies is an increasingly topical issue. However, the literature has lagged behind in helping us understand this phenomenon. Addressing this gap, ...the book draws on a variety of firm-level experiences across a range of key countries, sectors, and institutional contexts. Despite the obvious differences, the book finds a commonality in these experiences: they have all been influenced by shifts in the institutional, technological, and policy environment, in particular by the opening up of emerging market economies over the past three decades, and the consequent increase in international business interactions. Across the different countries surveyed in Asia and Latin America, the book argues that firm level innovation has been strongly influenced by capabilities that had previously been built up in a relatively closed environment. However, in the current more open environment, it is suggested that innovation among firms also reflects differences in these national historical contexts, as well as in the different forms of interaction with international business that have subsequently emerged. This book is a valuable resource for academics, researchers, and graduate students in international business and technology management. Contributors to this volume - Edmund Amann, University of Manchester John Cantwell, Rutgers University Martin Bell, University of Sussex Paulo Figueiredo, Fundacao Getulio Vargas/EBAPE Huiping Li, Ramapo College of New Jersey Dinar Kale, the Open University Rajah Rasiah, University of Malaya Keun Lee , Seoul National University John Matthews, Macquarie University Anabel Marin, University of Sussex
The real value of China’s stock market Carpenter, Jennifer N.; Lu, Fangzhou; Whitelaw, Robert F.
Journal of financial economics,
03/2021, Volume:
139, Issue:
3
Journal Article
Peer reviewed
Open access
What capital allocation role can China's stock market play? Counter to perception, stock prices in China have become as informative about future profits as they ate in the US. This rise in stock ...price informativeness has coincided with an increase in investment efficiency among privately owned firms, suggesting the market is aggregating information and providing useful signals to managers. However, price informativeness and investment efficiency for state-owned enterprises fell below that of privately owned firms after the postcrisis stimulus, perhaps reflecting unpredictable subsidies and state-directed investment policy. Finally, evidence from realized returns suggests Chinese firms face a higher cost of equity capital than US firms.
State interventions in markets assume varieties of forms in different economic systems. To capture this variety, we consider state capitalism as a multidimensional concept, first reviewing its ...historical evolution from both practical and scholarly vantages. We describe several dimensions of state capitalism and demonstrate how cross-national variations can be captured through positioning countries along these dimensions. We use cross-sectional data for a large sample of countries to derive factors that represent key dimensions of state capitalism. We demonstrate how cross-national and historical variation in state capitalism is captured by this Virtual Special Issue and offer suggestions for future research.
State-owned (SO) enterprises are subject to more complex institutional pressures in host countries than private firms. These institutional pressures arise from a weak legitimacy of "state ownership" ...in some countries, which arises from a combination of ideological conflicts, perceived threats to national security, and claimed unfair competitive advantage due to support by the home country government. These institutional pressures directed specifically at SO firms induce them to adapt their foreign entry strategies to reduce potential conflicts and to enhance their legitimacy. Testing hypotheses derived from this theoretical argument for subsidiaries of listed Chinese firms, we find that SO firms adapt mode and control decisions differently from private firms to the conditions in host countries, and these differences are larger where pressures for legitimacy on SO firms are stronger. These findings not only extend institutional theory to better explain differential effects on different entrants to an organizational field, but demonstrate how foreign investors of idiosyncratic origins may proactively build legitimacy in host societies.
Using a difference-in-differences approach, we study how intellectual property right (IPR) protection affects innovation in China in the years around the privatizations of state-owned enterprises ...(SOEs). Innovation increases after SOE privatizations, and this increase is larger in cities with strong IPR protection. Our results support theoretical arguments that IPR protection strengthens firms' incentives to innovate and that private sector firms are more sensitive to IPR protection than SOEs.
This book examines and evaluates various private initiatives to enforce fair labor standards within global supply chains. Using unique data (internal audit reports and access to more than 120 supply ...chain factories and 700 interviews in 14 countries) from several major global brands, including NIKE, HP and the International Labor Organization's Factory Improvement Programme in Vietnam, this book examines both the promise and the limitations of different approaches to actually improve working conditions, wages and working hours for the millions of workers employed in today's global supply chains. Through a careful, empirically grounded analysis of these programs, this book illustrates the mix of private and public regulation needed to address these complex issues in a global economy.
This open access book brings together narratives of inbound and outbound expatriate entrepreneurship in Japan to provide a comprehensive overview of international entrepreneurship in the region. ...Through in-depth interviews with expatriate entrepreneurs, policymakers, and additional stakeholders it provides the reader with a solid understanding of the current landscape of international entrepreneurship as it relates to Japan and the challenges for policymakers. The topics addressed in this book include definitions of expatriate entrepreneurship, entrepreneurship policy development and implementation, concepts of mindset, cultural brokerage, community, and identity as they relate to Japanese self-initiated expatriate entrepreneurs working in South East Asia and to non-Japanese self-initiated expatriate entrepreneurs working in Japan. Additionally, the book provides an overview of issues connected to regional development and economic growth in Asia. Illustrated through carefully chosen cases from Japan, Myanmar, Thailand, Cambodia, Vietnam, and Indonesia and developed by connecting these cases to policy and interdisciplinary studies, this book is highly recommended to scholars, policymakers and practitioners who seek an in-depth and up-to-date integrated overview of the field of expatriate entrepreneurship in Asia.
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