Emerging market nations such as Russia, Brazil, China, South Africa and India as well as Eastern ... more Emerging market nations such as Russia, Brazil, China, South Africa and India as well as Eastern European territories, are in the process of changes and growth that require specific study and attention. The international business strategies employed in these territories target new opportunities, the study of which provides scholars the opportunity to evolve international business theory. Covering three main themes-international business, management and marketing-Palgrave Studies of Internationalization in Emerging Markets will encompass a multiplicity of topics. Examining the new ways in which firms from emerging economies develop and implement their internationalization strategy, as well as their management and marketing strategies, the series will encompass specific issues such as social entrepreneurship, operations and regional specifics of internationalization. Looking closer at the specifics underlying the development of emerging market nations and their firms, this series aims to shed light on the current and future issues associated with the challenges and opportunities offered by the varying contexts of emerging markets.
International Journal of Finance & Economics, May 9, 2023
We study the impact of a unique financial anomaly—the simultaneous persistence of greater cash ho... more We study the impact of a unique financial anomaly—the simultaneous persistence of greater cash holdings and interest‐bearing debts (SP‐GCHID) on stock price. Due to institutional diversity and the nature of transition economies, high cash holdings do not always stem from precautionary motive as usually claimed but can be the result of cash misappropriation and debt manipulation by major shareholders. Analysing data from Chinese listed firms from 2010 to 2018, we find that SP‐GCHID is associated with a higher stock price crash risk (SPCR). It is more evident among firms with major shareholders pledging their shares and firms exposed to more external information monitoring. SP‐GCHID also affects SPCR through increasing real earnings management, further suggesting that major shareholders' misappropriation is the main reason for SP‐GCHID's adverse effect. These findings are also robust in a range of endogenous tests. To our knowledge, this study is the first to explore the economic consequences of SP‐GCHID.
This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) ... more This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) for a sample of UK firms acquiring North American and European firms. The leading set of motives lends support to the theories of strategic positioning and the resource based view. The highest ranked strategic motives for CBM&As are to enable presence in new markets, to enable faster entry to market, to facilitate international expansion, gain new capabilities and gain strategic assets. Hypotheses are tested on the relationship between the relative importance of individual strategic motives and a number of characteristics of the sample. In general findings show that there is little variation in the relative importance of the strategic motives across the characteristics of the sample.
This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) ... more This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) for a sample of UK firms acquiring North American and European firms. The leading set of motives lends support to the theories of strategic positioning and the resource based view. The highest ranked strategic motives for CBM&As are to enable presence in new markets, to enable faster entry to market, to facilitate international expansion, gain new capabilities and gain strategic assets. Hypotheses are tested on the relationship between the relative importance of individual strategic motives and a number of characteristics of the sample. In general findings show that there is little variation in the relative importance of the strategic motives across the characteristics of the sample.
Abstract Research on cross-border acquisitions (CBAs) consistently recognizes the importance of c... more Abstract Research on cross-border acquisitions (CBAs) consistently recognizes the importance of cultural differences, yet it lacks consensus on whether it has a positive or negative impact. While tied to the purpose and consequences of an acquisition, synergy realization has not received much attention in research on culture-performance relationship. Focusing on synergy realization in CBAs and applying a process and conditional perspective, we propose the relationship between national/ organizational culture differences and synergy realization to be moderated by the quality and extent of due diligence and post-acquisition coordination. Drawing from cross-cultural interaction and inter-organizational learning arguments, we further propose idiosyncratic effects of cultural differences in different synergy realization contexts, where we contrast explicit with implicit synergy realization. Our analysis is based on a unique survey on a sample of 103 cross-border acquisitions. The results indicate that both national and organizational culture differences exert a negative impact on the realization of implicit synergies while no impact on the realization of explicit synergies. National culture differences are found to have a stronger negative effect than organizational culture differences on synergy realization. Sufficient culture and human due diligence prior to the acquisition is found to significantly moderate the impact of high cultural differences.
This paper constructs an Economy-Energy-Emissions (3E) System Dynamics Model using the megacity o... more This paper constructs an Economy-Energy-Emissions (3E) System Dynamics Model using the megacity of Beijing, China, as an example, to estimate the effects of different policy scenarios (including three single-policy scenarios and four combined-policy scenarios) on the core variables of Beijing's 3E system from 2021 to 2035. The results suggest two main points. (1) Following the current development trend, the proportion of the GDP represented by the added value of advanced high-precision industries (Gao Jing Jian in Chinese) will only be 43% in 2035, implying a limited role in promoting economic growth. Despite effective control of total energy consumption, fossil energy's share of total consumption will reach 57% by 2035, hindering the process of making the energy consumption structure cleaner and leading to failure to achieve the targeted inflection point in CO2 emissions by 2025. PM2.5 control shows some successful results and will decrease to 19 μ g/m3 in 2035. However, a ...
GSOM Emerging Markets Conference 2021, online, 4-12 October 2021, 2021
Aiming to advance the springboard view and to contextualize it from diverse perspectives, this st... more Aiming to advance the springboard view and to contextualize it from diverse perspectives, this study investigates cross-border strategic asset acquisitions by ten Chinese multinational enterprises (CMNEs). We reveal that springboard CMNEs) set strategic intents (global leadership) early in their development towards internationalization and persistently pursue them through cross-border asset acquisitions. We extend the current strategy typology of emerging market multinationals and assign specific ownership advantages and disadvantages to all strategy types. The study reveals four springboard trajectories which represent path-breaking strategy changes running from four initial strategies to three new ones. Further light is shed on the critical role of acquired strategic assets through the analysis of post-acquisition asset orchestration. The study contributes to the research on emerging market multinational enterprises in general and in particular to a better understanding of their internationalization behaviour and rapid development, thereby helping Western companies interpret CMNEs enterprises’ springboard internationalization activities more accurately
Keeping open innovation both stable and sustainable can be difficult when it involves cooperation... more Keeping open innovation both stable and sustainable can be difficult when it involves cooperation between large enterprises. Some empirical studies suggest that subsidy policies can play a positive role. This study addresses two key questions that follow from this observation: first, if the intensity of a subsidy policy is increased, can it play a greater role in strengthening the stability of cooperation between firms? Second, what other factors play a mediating role in this effect? Utilizing a dynamic game model, this paper analyses influential factors such as absorptive capacity, frequency of engagement and technical value on cooperative stability, and investigates the role of innovation policy in the process of cooperation through a random number-driven simulation. The findings indicate that only when the absorption capacity and technological value of both partners meet a certain threshold is the probability of positive cooperative behavior improved. Otherwise, increased subsidi...
This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) ... more This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) for a sample of UK firms acquiring North American and European firms. The leading set of motives lends support to the theories of strategic positioning and the resource based view. The highest ranked strategic motives for CBM&As are to enable presence in new markets, to enable faster entry to market, to facilitate international expansion, gain new capabilities and gain strategic assets. Hypotheses are tested on the relationship between the relative importance of individual strategic motives and a number of characteristics of the sample. In general findings show that there is little variation in the relative importance of the strategic motives across the characteristics of the sample.
Improving urban ecological efficiency is an integral part of ecological protection and high-quali... more Improving urban ecological efficiency is an integral part of ecological protection and high-quality development of the Yellow River Basin. We used the super-efficiency slacks-based model with unexpected output to measure the ecological efficiency of 62 prefecture-level cities in the Yellow River Basin from 2005 to 2018. Its spatial distribution characteristics and convergence are discussed. The influencing factors and spatial spillovers of the ecological efficiency are assessed through the spatial Dubin model. The results show that: 1) The ecological efficiency is highest in cities in the lower reaches of the Yellow River Basin, mid-level in the upper reaches, and lowest in the middle reaches. 2) There is no σ convergence in the ecological efficiency of the Yellow River Basin, but there is absolute β convergence and conditional β convergence. 3) Economic development, financial development, and technological innovation significantly promote ecological efficiency, and the spatial spil...
Emerging market nations such as Russia, Brazil, China, South Africa and India as well as Eastern ... more Emerging market nations such as Russia, Brazil, China, South Africa and India as well as Eastern European territories, are in the process of changes and growth that require specific study and attention. The international business strategies employed in these territories target new opportunities, the study of which provides scholars the opportunity to evolve international business theory. Covering three main themes-international business, management and marketing-Palgrave Studies of Internationalization in Emerging Markets will encompass a multiplicity of topics. Examining the new ways in which firms from emerging economies develop and implement their internationalization strategy, as well as their management and marketing strategies, the series will encompass specific issues such as social entrepreneurship, operations and regional specifics of internationalization. Looking closer at the specifics underlying the development of emerging market nations and their firms, this series aims to shed light on the current and future issues associated with the challenges and opportunities offered by the varying contexts of emerging markets.
International Journal of Finance & Economics, May 9, 2023
We study the impact of a unique financial anomaly—the simultaneous persistence of greater cash ho... more We study the impact of a unique financial anomaly—the simultaneous persistence of greater cash holdings and interest‐bearing debts (SP‐GCHID) on stock price. Due to institutional diversity and the nature of transition economies, high cash holdings do not always stem from precautionary motive as usually claimed but can be the result of cash misappropriation and debt manipulation by major shareholders. Analysing data from Chinese listed firms from 2010 to 2018, we find that SP‐GCHID is associated with a higher stock price crash risk (SPCR). It is more evident among firms with major shareholders pledging their shares and firms exposed to more external information monitoring. SP‐GCHID also affects SPCR through increasing real earnings management, further suggesting that major shareholders' misappropriation is the main reason for SP‐GCHID's adverse effect. These findings are also robust in a range of endogenous tests. To our knowledge, this study is the first to explore the economic consequences of SP‐GCHID.
This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) ... more This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) for a sample of UK firms acquiring North American and European firms. The leading set of motives lends support to the theories of strategic positioning and the resource based view. The highest ranked strategic motives for CBM&As are to enable presence in new markets, to enable faster entry to market, to facilitate international expansion, gain new capabilities and gain strategic assets. Hypotheses are tested on the relationship between the relative importance of individual strategic motives and a number of characteristics of the sample. In general findings show that there is little variation in the relative importance of the strategic motives across the characteristics of the sample.
This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) ... more This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) for a sample of UK firms acquiring North American and European firms. The leading set of motives lends support to the theories of strategic positioning and the resource based view. The highest ranked strategic motives for CBM&As are to enable presence in new markets, to enable faster entry to market, to facilitate international expansion, gain new capabilities and gain strategic assets. Hypotheses are tested on the relationship between the relative importance of individual strategic motives and a number of characteristics of the sample. In general findings show that there is little variation in the relative importance of the strategic motives across the characteristics of the sample.
Abstract Research on cross-border acquisitions (CBAs) consistently recognizes the importance of c... more Abstract Research on cross-border acquisitions (CBAs) consistently recognizes the importance of cultural differences, yet it lacks consensus on whether it has a positive or negative impact. While tied to the purpose and consequences of an acquisition, synergy realization has not received much attention in research on culture-performance relationship. Focusing on synergy realization in CBAs and applying a process and conditional perspective, we propose the relationship between national/ organizational culture differences and synergy realization to be moderated by the quality and extent of due diligence and post-acquisition coordination. Drawing from cross-cultural interaction and inter-organizational learning arguments, we further propose idiosyncratic effects of cultural differences in different synergy realization contexts, where we contrast explicit with implicit synergy realization. Our analysis is based on a unique survey on a sample of 103 cross-border acquisitions. The results indicate that both national and organizational culture differences exert a negative impact on the realization of implicit synergies while no impact on the realization of explicit synergies. National culture differences are found to have a stronger negative effect than organizational culture differences on synergy realization. Sufficient culture and human due diligence prior to the acquisition is found to significantly moderate the impact of high cultural differences.
This paper constructs an Economy-Energy-Emissions (3E) System Dynamics Model using the megacity o... more This paper constructs an Economy-Energy-Emissions (3E) System Dynamics Model using the megacity of Beijing, China, as an example, to estimate the effects of different policy scenarios (including three single-policy scenarios and four combined-policy scenarios) on the core variables of Beijing's 3E system from 2021 to 2035. The results suggest two main points. (1) Following the current development trend, the proportion of the GDP represented by the added value of advanced high-precision industries (Gao Jing Jian in Chinese) will only be 43% in 2035, implying a limited role in promoting economic growth. Despite effective control of total energy consumption, fossil energy's share of total consumption will reach 57% by 2035, hindering the process of making the energy consumption structure cleaner and leading to failure to achieve the targeted inflection point in CO2 emissions by 2025. PM2.5 control shows some successful results and will decrease to 19 μ g/m3 in 2035. However, a ...
GSOM Emerging Markets Conference 2021, online, 4-12 October 2021, 2021
Aiming to advance the springboard view and to contextualize it from diverse perspectives, this st... more Aiming to advance the springboard view and to contextualize it from diverse perspectives, this study investigates cross-border strategic asset acquisitions by ten Chinese multinational enterprises (CMNEs). We reveal that springboard CMNEs) set strategic intents (global leadership) early in their development towards internationalization and persistently pursue them through cross-border asset acquisitions. We extend the current strategy typology of emerging market multinationals and assign specific ownership advantages and disadvantages to all strategy types. The study reveals four springboard trajectories which represent path-breaking strategy changes running from four initial strategies to three new ones. Further light is shed on the critical role of acquired strategic assets through the analysis of post-acquisition asset orchestration. The study contributes to the research on emerging market multinational enterprises in general and in particular to a better understanding of their internationalization behaviour and rapid development, thereby helping Western companies interpret CMNEs enterprises’ springboard internationalization activities more accurately
Keeping open innovation both stable and sustainable can be difficult when it involves cooperation... more Keeping open innovation both stable and sustainable can be difficult when it involves cooperation between large enterprises. Some empirical studies suggest that subsidy policies can play a positive role. This study addresses two key questions that follow from this observation: first, if the intensity of a subsidy policy is increased, can it play a greater role in strengthening the stability of cooperation between firms? Second, what other factors play a mediating role in this effect? Utilizing a dynamic game model, this paper analyses influential factors such as absorptive capacity, frequency of engagement and technical value on cooperative stability, and investigates the role of innovation policy in the process of cooperation through a random number-driven simulation. The findings indicate that only when the absorption capacity and technological value of both partners meet a certain threshold is the probability of positive cooperative behavior improved. Otherwise, increased subsidi...
This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) ... more This paper considers the strategic motivation for cross border mergers and acquisitions (CBM&As) for a sample of UK firms acquiring North American and European firms. The leading set of motives lends support to the theories of strategic positioning and the resource based view. The highest ranked strategic motives for CBM&As are to enable presence in new markets, to enable faster entry to market, to facilitate international expansion, gain new capabilities and gain strategic assets. Hypotheses are tested on the relationship between the relative importance of individual strategic motives and a number of characteristics of the sample. In general findings show that there is little variation in the relative importance of the strategic motives across the characteristics of the sample.
Improving urban ecological efficiency is an integral part of ecological protection and high-quali... more Improving urban ecological efficiency is an integral part of ecological protection and high-quality development of the Yellow River Basin. We used the super-efficiency slacks-based model with unexpected output to measure the ecological efficiency of 62 prefecture-level cities in the Yellow River Basin from 2005 to 2018. Its spatial distribution characteristics and convergence are discussed. The influencing factors and spatial spillovers of the ecological efficiency are assessed through the spatial Dubin model. The results show that: 1) The ecological efficiency is highest in cities in the lower reaches of the Yellow River Basin, mid-level in the upper reaches, and lowest in the middle reaches. 2) There is no σ convergence in the ecological efficiency of the Yellow River Basin, but there is absolute β convergence and conditional β convergence. 3) Economic development, financial development, and technological innovation significantly promote ecological efficiency, and the spatial spil...
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Papers by Daojuan Wang