Search

While the recent COVID-19 pandemic has accelerated environmental, social, and governance (ESG) investing, there remains a growing sense of uncertainty in this sector. This study investigates the impacts of ESG-related information disclosures on firm value and tests the relationship between ESG scores and firm value. Using a Chinese dataset, we run a fixed-effects panel regression model to assess the impact of ESG performance on firm value in terms of enterprise multiples while controlling for corporate attributes. Our results reveal that disclosing ESG-related information significantly increases firm value, and this relationship has intensified after the pandemic. However, the influence of ESG scores on firm value only seems significant after the pandemic. Environmental score significantly affects firm values whereas social and governance category scores do not. [ABSTRACT FROM AUTHOR]

Yum! Brands, Inc. has always been committed to capturing the Chinese market and has successfully adopted brand marketing strategies. With the rapid development of the Chinese market economy, Yum! Brands, Inc. has gained tremendous opportunities in one of the most important markets in the world. However, the fierce competition in the context of consumer upgrading also brings challenges. In the current market environment, consumers demand more in terms of products, dining environment, services, and experiences, while demonstrating personalized and diversified needs. As a result, Yum! Brands, Inc. is faced with the essential task of adapting to market development and meeting the changing needs of consumers to maintain a competitive advantage. This study investigates the marketing strategy of Yum! Brands, Inc. in the Chinese market by using PEST and SWOT analyses through the literature research method. The study aims to promote Yum! Restaurant Group's market influence and stable development, as well as to provide a reference for similar foreign restaurant companies' local marketing strategies in China. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate dynamic relationships among residential housing price indices of ten major Chinese cities for the years 2005–2021. Design/methodology/approach: Using monthly data, this study uses vector error correction modeling and the directed acyclic graph for characterization of contemporaneous causality among the ten indices. Findings: The PC algorithm identifies the causal pattern and the Linear Non-Gaussian Acyclic Model algorithm further determines the causal path, from which this study conducts innovation accounting analysis. Sophisticated price dynamics are found in price adjustment processes following price shocks, which are generally dominated by the top tiers of cities. Originality/value: This study suggests that policies on residential housing prices in the long run might need to be planned with particular attention paid to these top tiers of cities. [ABSTRACT FROM AUTHOR]

In order to distribute their films in China, U.S. filmmakers must submit them to Chinese censors for approval, which frequently require changes to films to portray China and the Chinese in a more favorable light.  Given the millions of dollars to potentially be made in the large Chinese market, filmmakers have been willing to comply with Chinese censors, and have even begun to censor themselves by anticipating China’s concerns and tailoring their films appropriately.  In this way, China is able to influence the way it is portrayed in films not just for audiences in China, but in the United States and around the world.  To combat the spread of Chinese propaganda in this way, Senator Ted Cruz introduced a bill, dubbed the SCRIPT Act, that would prohibit filmmakers from obtaining government assistance with their films unless they refrain from making changes to film content to accommodate the Chinese government.  This Article examines whether the SCRIPT Act, by denying government support to filmmakers based on the content of their films, violates the First Amendment.  While a bill might be crafted to do this in a way consistent with constitutional requirements, certain aspects of the SCRIPT Act make it likely to be unconstitutional.

Applying behavioural economic theory, we argue that the frequency of philanthropic activity is important in determining corporate philanthropy's economic outcome. Using Chinese data from 2003 to 2016, we find that firms with more frequent philanthropic activities obtain more government subsidies than firms that only engage in one‐off charitable donations. Firms with better corporate governance, such as higher management ownership and more independent directors, are more likely to adopt a strategy of frequent donation. Furthermore, firms are more likely to be frequent donors when management or local government officers have a long tenure. Our findings provide insight into the giving process and suggest that firms can maximize the benefit of corporate philanthropy if they strategically consider the donation frequency and donation amount simultaneously. [ABSTRACT FROM AUTHOR]

The Chinese stock market exhibits many characteristics that deviate from the efficient market hypothesis and the trading volume contains a great deal of complexity information that the price cannot reflect. Do small or big orders drive trading volume? We studied the complex behavior of different orders from a microstructure perspective. We used ETF data of the CSI300, SSE50, and CSI500 indices and divided transactions into big and small orders. A multifractal detrended fluctuation analysis (MFDFA) method was used to study persistence. It was found that the persistence of small orders was stronger than that of big orders, which was caused by correlation with time. A multiscale composite complexity synchronization (MCCS) method was used to study the synchronization of orders and total volume. It was found that small orders drove selling-out transactions in the CSI300 market and that big orders drove selling-out transactions in the CSI500 market. Our findings are useful for understanding the microstructure of the trading volume in the Chinese market. [ABSTRACT FROM AUTHOR]

This paper investigates the effect of investor investment sentiment on individual stock returns in China. We find that investment sentiment is positively associated with stock performance contemporaneously. The Granger Causality test shows that investor sentiment is a driving force of stock price movement but not the other way around. Our constructed VAR model further suggests that the change in investor sentiment in the lagged period does not significantly affect the current stock return. In addition, both the Impulse Response and the Variance Decomposition analysis provide evidence that the stock price will increase right after a positive sentiment shock, and then follow a price drop until an intrinsic value comes up. Overall, the investor sentiment factor has a strong explanatory power to explain the variation in stock return. [ABSTRACT FROM AUTHOR]

For policymakers and investors, forecasting prices of energy indices has always been an important task. The present work focuses on the Chinese market and explores the daily price forecasting problem for the new energy index in the mainland during the period spanning January 4, 2016 – December 31, 2020. Our analysis is facilitated through the nonlinear autoregressive neural network model and one hundred and twenty model settings are tested in the fields of the algorithm for training the model, the number of hidden neurons utilized, the number of delays utilized, and the ratio utilized for segmenting the price series into different phases. Analysis here leads to the construction of a rather simple model based upon four delays and two hidden neurons with the Levenberg-Marquardt algorithm for training, which generates accurate and stable forecast results, with relative root mean square errors below 1.80% and mean absolute percentage errors below 1.30% across training, validation, and testing phases and for the overall sample. This constructed model also leads to statistically significantly better forecasting performance than a linear autoregressive model at the 1% significance level based upon the modified Diebold-Mariano test. The model built could be used as part of policy analysis for policymakers and decision making for investors. The forecasting results might also benefit design of similar energy indices by offering reference information in terms of price paths projected through the model.

We investigate whether religious site density around a firm's headquarters is related to corporate default risk in China. We find that public firms surrounded by a higher number of Buddhist and Taoist temples are associated with lower default risk. In contrast to the widely documented impact of Western religiosity on corporate behavior, our mechanism tests indicate that lower default risk related to religious site density is primarily driven by better corporate governance and not by a surge in corporate conservatism. Finally, we find that this default risk lowering effect is more pronounced when firms also possess greater political resources. • Firms surrounded by more religious temples have lower expected default risk. • The relation is driven by corporate governance and not by corporate conservatism. • The relation depends on the degree of political exposure experienced by the firm. [ABSTRACT FROM AUTHOR]

[Display omitted] • 305 fish samples covering six types of processed products were evaluated. • SALT method was determined as the most appropriate DNA extraction method. • Approximately 36.4% of fish samples were inconsistent with the labels. • Mini-barcoding can precisely identify processed products containing degraded DNA. DNA-based methods are reliable for a precise identification of species in processed products. In this study, we assessed five typical DNA extraction methods from multiple aspects. Full-length and mini-length DNA barcoding were performed to detect the species substitution and mislabeling of 305 processed fish products from the Chinese market covering six processed fish products. The salt extraction method that exhibited the best overall performance was applied. All samples were successfully extracted; however, only 19.3 % of samples could be amplified using the full-DNA barcode primer set, and 90.2 % of samples could be amplified using the newly designed mini-DNA barcode primer sets (401 and 320 bp). Overall, the molecular identification results revealed that 36.4 % (111/305) of the samples were inconsistent with the labels, with commercial fraud observed in all six types of processed fish products. The survey findings provide technical references for effective fish authentication monitoring, offering insights into the seafood safety in markets. [ABSTRACT FROM AUTHOR]

The Chinese stock market exhibits many characteristics that deviate from the efficient market hypothesis and the trading volume contains a great deal of complexity information that the price cannot reflect. Do small or big orders drive trading volume? We studied the complex behavior of different orders from a microstructure perspective. We used ETF data of the CSI300, SSE50, and CSI500 indices and divided transactions into big and small orders. A multifractal detrended fluctuation analysis (MFDFA) method was used to study persistence. It was found that the persistence of small orders was stronger than that of big orders, which was caused by correlation with time. A multiscale composite complexity synchronization (MCCS) method was used to study the synchronization of orders and total volume. It was found that small orders drove selling-out transactions in the CSI300 market and that big orders drove selling-out transactions in the CSI500 market. Our findings are useful for understanding the microstructure of the trading volume in the Chinese market.

The product market competition has become a global challenge for business organizations in the challenging and competitive market environment in the influx of the COVID-19 outbreak. The influence of products competition on organizational performance in developed economies has gained scholars' attention, and numerous studies explored its impacts on business profitability. The existing studies designate mixed findings between the linkage of CSR practices and Chinese business firms' healthier performance in emerging economies; however, the current global crisis due to the coronavirus has made product market completion fierce, which ultimately affects business firms' performance. This study focuses on this logical global challenge, investigates the rationale, and examines product-market completion impact on firms' performance operating in the Chinese markets. The study collected data from the annual reports of Chinese business organizations with A-share listing and registered with the database of China Stock Markets and Accounting Research (CSMAR). The study employed a Generalized Method of Moment technique and investigated the connection between product market competition and Chinese firm performance. The empirical analysis of this study highlights the conclusion that market competition positively and significantly affected business firms' performance. This study specified that product market competition play a dynamic and indispensable role in achieving healthier firm performance in the Chinese markets. This study provides valuable insights on practical implications and future research directions for the scholars to draw interesting results with new study models. [ABSTRACT FROM AUTHOR]

SYNOPSIS: Financial analysts have two important roles in the capital market. In addition to their informational role, which has been widely studied, they play an important monitoring role. Similar to their informational role, their monitoring role might be negatively affected when they face conflicts of interest. Using a sample of Chinese firms, we show that if analysts are under pressure (i.e., housed in a brokerage firm where specific mutual funds hold large positions in a company covered by the analyst), their role in lowering the firm earnings management activities is significantly compromised. We find that the closer the business relationship between the mutual fund and the brokerage firm, the greater the firm earnings management. Our findings caution investors and regulators to heed the impact of client pressure on analysts' roles in financial markets. [ABSTRACT FROM AUTHOR]

We study whether short selling affects corporate tax aggressiveness. Exploiting staggered short-sale deregulation in the Chinese stock market as a source of variation in market pressure and monitoring, our difference-in-differences estimates show that the introduction of a short-selling scheme significantly discourages pilot firms from engaging in aggressive tax avoidance, in contrast to the findings by Luo, Ni, and Tian (2020. "Short Selling and Corporate Tax Avoidance: Insights from a Financial Constraint View." Pacific–Basin Finance Journal 61: 101323.). We also find that the negative effect of short selling on tax aggressiveness is more pronounced for firms that have high advertising costs, high institutional holdings, and CEO duality, and are located in regions with weak tax law enforcement. We further reveal that short selling has an indirect effect on tax aggressiveness through the additional external pressure exerted by auditors, media, and financial analysts, and lastly, challenge the main analysis by Luo, Ni, and Tian (2020). Our evidence highlights the monitoring and disciplinary roles that short sellers play in determining the level of corporate tax aggressiveness. [ABSTRACT FROM AUTHOR]

Although companies perform societal marketing activities across different cultural regions, previous research was predominantly centered on a specific cultural region-the West. To address this limitation in the literature, the current research examines societal marketing in the Chinese market considering cultural characteristics. China has become the largest market in the world with great potential growth for its vast consumer base. Since there is heterogeneity among regions in China, it is imperative to divide China into several markets for better understanding. Thus, this study investigates different responses of Chinese regional (coastal vs. inland) consumers toward Cause-related Marketing (CM). Our findings reveal that Chinese consumers, in general, prefer utilitarian CM products compared to hedonic CM products, which is the opposite result of findings of the previous research. Further, this was truer for consumers in inland regions, while coastal consumers did not display any preference by product type. The academic and practical implications, limitations, and directions for future research are discussed.

The product market competition has become a global challenge for business organizations in the challenging and competitive market environment in the influx of the COVID-19 outbreak. The influence of products competition on organizational performance in developed economies has gained scholars’ attention, and numerous studies explored its impacts on business profitability. The existing studies designate mixed findings between the linkage of CSR practices and Chinese business firms’ healthier performance in emerging economies; however, the current global crisis due to the coronavirus has made product market completion fierce, which ultimately affects business firms’ performance. This study focuses on this logical global challenge, investigates the rationale, and examines product-market completion impact on firms’ performance operating in the Chinese markets. The study collected data from the annual reports of Chinese business organizations with A-share listing and registered with the database of China Stock Markets and Accounting Research (CSMAR). The study employed a Generalized Method of Moment technique and investigated the connection between product market competition and Chinese firm performance. The empirical analysis of this study highlights the conclusion that market competition positively and significantly affected business firms’ performance. This study specified that product market competition play a dynamic and indispensable role in achieving healthier firm performance in the Chinese markets. This study provides valuable insights on practical implications and future research directions for the scholars to draw interesting results with new study models.

This study aims to analyze the relationship and influence of the Chinese market Average Daily Rate (ADR) on the overall ADR at Conrad Bali Hotel. Data collection used in this study through observation, interview, and documentation. The analysis techniques used are descriptive statistics, correlation analysis, simple linear regression, and the coefficient of determination test (R2). The results of this study indicated that the Chinese market ADR (X) variable has a positive correlation with very strong category, overall ADR with a correlation value of 0.819. The coefficient regression is 1.085 and the coefficient determination shows that the influence of Chinese market ADR (X) on overall ADR (Y) is 66%. Thus, Chinese market can be an option to filling the occupancy when low seasons and a good target market when special occasion but should be followed by a necessary way to optimize its strength.

This paper analyzes the impact of macroeconomic variables on house price volatility under different regimes of policy uncertainty, incorporating the Economic Policy Uncertainty Index and several Chinese macroeconomic data sets for the period from 1999 to 2014. We adopt a logistic smooth transition vector autoregressive model and a generalized impulse response function. The results show that macroeconomic progress leads to house price growth, which is augmented by policy uncertainty. In addition, the effect of macroeconomic shocks on house price volatility varies under different regimes of policy uncertainty. We find that shocks are asymmetric under regimes of high and low policy uncertainty. Under a high policy uncertainty regime, expansionary quantitative monetary policy can facilitate house price growth, whereas a contractionary monetary policy gives rise to an enduring “Home Price Puzzle,” which makes it difficult to regulate house prices.

Copyright of GVcasos: Revista Brasileira de Casos de Ensino em Administração is the property of Fundacao Getulio Vargas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Compared with stock market, cryptocurrency market is more susceptible to investor sentiment at the lack of substantial asset support. This study develops a proxy to measure the investor sentiment of cryptocurrency market by using textual analytics on millions of posts in Chain Node, which is the most active online community for Chinese cryptocurrency investors. We investigate the correlation between the sentiment and the market return from Jan. 2018 to Aug. 2020. The study argues that the proposed proxy could well reflect the investor sentiment of the cryptocurrency. [ABSTRACT FROM AUTHOR]