Emerging business transnationalism in Singapore and China : governance, networks, and strategies

Against the backdrop of a rising China and the Fourth Industrial Revolution, there has been increasing interest in the governance models and strategies of ethnic Chinese businesses. Taking this growing literature a step further and seeking to transcend dominant paradigms of businesses and entrepreneurship derived mostly from the Western experiences, this article critically re-evaluates the role of ethnicity and culture in the governance models, behaviour, and networks of transnational Chinese businesses based in Singapore, with operations in Southeast Asia and China. We argue that while ethnicity and culture remain as a significant factor in shaping transnational Chinese business, Chinese companies in Southeast Asia have adopted new corporate governing models and strategies in their engagement with China markets at the time of the Fourth Industrial Revolution. This article adds nuance to the international business and management literature by arguing that the corporate governance, management, and strategies of Chinese companies should not be perceived via a binary perspective, either converging towards or diverging from Western models of businesses and relying solely on ethnicity and culture

Do Poison Pills Increase Firm Risk?

Management scholars have argued that an active takeover market discourages risk-taking by managers and that takeover defenses serve to counter the risk-reducing pressures of an active takeover market. This study employs the Black and Scholes Option Pricing Model to determine whether or not adoption of poison pill securities increases investor perceptions of firm risk. The results provide evidence that the Option-Implied Standard Deviations of common stock returns increase significantly on the poison pill adoption date, on average. Furthermore, the implied standard deviations remained significantly above pre-adoption levels for several days after the poison pill adoption, suggesting that the perceived increase in firm risk is permanent. These results suggest the poison pills may serve a more constructive role in the governance of publicly traded firms than is generally assumed

The Effect of Rivals When Firms Emerge from Bankruptcy

Studies on the announcement effects of bankruptcy filings have found that when a firm files for Chapter 11 bankruptcy protection its shareholders suffer significant losses. A recent paper extends these findings by investigating the announcement effect on rival companies, while another examines the equity performance of firms emerging from bankruptcy. We combine these two lines of inquiry by examining the effect on rivals when a firm emerges from the protection of Chapter 11. We find both significant negative stock market returns and significant negative revisions in analysts’ earnings forecasts for rivals of successfully reorganized companies.</jats:p