• The Journal of the Korea Contents Association
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• v.22 no.8
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• pp.318-328
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• 2022

The purpose of this study is to analyze the impact of ownership concentration and R&D investment on earnings growth of listed companies in China. For this purpose, this study utilized 14,196 samples from 2,366 Chinese listed companies using the WIND database and conducted empirical analysis by Python. The results of the analysis are as follows. First, the data shows that ownership concentration has a positive (+) impact on revenue growth of Chinese listed firms. Second, ownership concentration has a postive(+) impact on R&D investment of Chinese listed firms. Third, the survey shows that R&D investment has a positive (+) impact on revenue growth of Chinese listed firms. Fourth, the impact of R&D investment on earnings growth of Chinese listed firms has time lag effect. Fifth, R&D investment has a partial mediating effect in ownership concentration and earnings growth of Chinese listed firms. Based on these analytical results, this study proposes measures to promote firms' earnings increase by optimizing ownership concentration and increasing R&D investment in Chinese listed firms.

• The Journal of the Korea Contents Association
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• v.22 no.3
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• pp.369-379
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• 2022

With the deepening integration of technology and cultural industries, China's digital cultural industry has begun to rise. The digital culture industry has met new demands for cultural consumption and brought new experiences to consumers in the digital economy era. This paper uses the public data of 36 Chinese A-share listed companies in digital culture from 2018 to 2019 to construct a technical innovation efficiency evaluation index system for listed companies in China's digital cultural industry. Through the use of data envelopment analysis (DEA) method, the technical innovation efficiency of 36 listed companies in China's digital cultural industry was evaluated. The research results show that: (1) China's 36 listed companies have low technological innovation efficiency; (2) the allocation of R&D resources of listed companies is unreasonable; (3) there is a large difference in technological innovation efficiency among listed companies. Therefore, it is necessary to increase the efficiency of technology innovation of listed companies in China's digital culture industry by investing more R&D funds, distributing R&D resources, establishing effective dynamic incentive mechanism, promoting government-industrial-academic research.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.3
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• pp.129-138
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• 2014

After global economic crisis, China has become one of the two pillars in the global economies and the country contributing to the Korean economy. Nevertheless, the research on Chinese financial market, particularly capital market, is rare to date. This study examined the growth enterprise market that emergedat the Shenzhen stock exchange and made comparative analysis on before and after listing for the Chinese small and medium sized firms and venture firms. The listing requirements at the Chinese growth enterprise market for the technologically innovative venture firms and fast-growing small and medium sized firms with financing purpose were more alleviated than the main board of Shenzhen stock exchange. Moreover, the listing procedures are simplified as well. Accordingly, many Chinese enterprises tend to list and the competition for listing is also intense. In particular, with the 36 initially listed firms at growth enterprise market as the research target, the investigation for the business performance before and after listing reveals that the three indexes including return on common equity, debt ratio and operating profit growth rate dropped dramatically for most all the firms. That is, the profitability and growth for the venture firms and small and medium sized firms listed on the Chinese growth enterprise market decreased rapidly after going public, only the stability improved due to the great financing. Taking a step forward, this phenomenon may result from the exaggerated reporting for the business performance before listing with the purpose of going public by the venture firms and small and medium sized firms. Thus, Chinese Securities Regulatory Commission should strengthen the accounting evaluation standard and regulation for the listing firms before going public. In addition, strict sanctions should be imposed on the firms with fraudulent accounting to establish healthy capital market.

• Analyses & Alternatives
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• v.7 no.2
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• pp.111-145
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• 2023

This study examines the impact of political connections of Chinese listed firms on CSR(Corporate Social Responsibilities) activities. Firms recognize the political connections as 'non-market strategy' and actively utilize various benefits obtained through them for management activities. In order to utilize these political connections, there is a need for firms to implicitly perform the government's social policy obligations in return for their benefits. In particular, CSR activities in China are one of the government-led social policies unlike in the West, and the government wants firms to solve social problems through active CSR activities. In this background, this study empirically verifies whether firms with political connections are actively carrying out CSR activities required by the government from 2013 to 2019. As a result, Chinese listed firms with political connections have a positive effect on CSR activities. Especially, those with political connections with central government carry out both government benefits and social policy obligations.

• Journal of Industrial Convergence
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• v.19 no.5
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• pp.35-45
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• 2021

The purpose of this study is to analyze the means of accounting fraud in Chinese listed agricultural companies and to suggest methods for the prevention of accounting fraud and follow-up measures. In this study, 21 Chinese agricultural enterprises were investigated and counted by means of accounting fraud. The means of accounting fraud of listed companies related to agriculture mainly consisted of profit inflation, inflating their net assets, the disclosure of accounting information violations, asset inflation for net asset inflation, and the incomplete disclosure for accounting information violations. Among these, income forgery was the most frequent among the 21 companies surveyed as a means of accounting fraud in profit inflation. Through this study, in the field of auditing academically, it is possible to find the motives of fraudulent acts in Chinese agricultural enterprises and to obtain advice to reduce fraudulent acts, and it will be of great help in theoretical research related to accounting frauds.

• Management & Information Systems Review
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• v.35 no.3
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• pp.155-171
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• 2016

Separation of management with ownership induces the agency problems between CEO and shareholders of Chinese firms. To solve this problem Chinese government has enforced the "stock incentive management law for stock listed companies" since 2006. However, it has not been clear that this law is beneficial to reduce the agency cost and thus to increase the performance of Chinese firms. This study aims to answer this question. It is specifically designed to explore the effects of CEO's stock incentive on the performance of Chinese firms. It also examines the moderating effects of the characteristics of the board of directors on this relationship. Using a multi-year sample (2008-2014), we found that CEO's stock incentive is positively related to firm's performance. We also found that the equity stakes of board members strengthens the positive relations between CEO's equity incentives and firms' performance. On the other hand, contrary to expectations, the independency of the board of directors does not significantly moderate the relationship between CEO's equity incentives and firms' performance. Based on the findings, this study provides valuable implication for theory and practice.

• International Area Studies Review
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• v.13 no.1
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• pp.241-263
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• 2009

This paper explores the impacts of ownership structure on performance of listed firms in China using 1994-2002 data. Using a new ownership classification scheme, this paper analyzes the impact of three factors, the ownership identity, equity ownership by the controlling shareholder, and equity ownership by the minority shareholders, on the performance of firms. Panel regression analysis shows that the firms controlled by the government are outperformed by firms controlled by private owners, supporting the hypothesis that the state pursues political objectives such as excess employment rather than profit maximization or the hypothesis that political interference by the Party or government may cause high political costs. Regression results also show that higher equity ownership by the controlling shareholder improves firm performance in private controlled firms and partially in marketized corporate controlled firms. The results also show that higher equity ownership by relatively large shareholders (from top 2 to top 10 shareholders) leads to better performance in marketized corporate controlled firms and partially in private controlled firms.

• Korea Trade Review
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• v.41 no.1
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• pp.41-66
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• 2016

This paper analyzes the firms value and the business performance before and after Chinese firms got listed in the U.S. First of all, it was separated into term before U.S listed and after listed, and looked whether there was any change in the Tobin'Q. After listed, as time went on Tobin'Q decreased more. In terms of net sales growth rate, it dropped significantly after U.S IPO. Operating profits and net profits rate increased more after being listed in large corporation, but in small corporation cases, it produced an opposite effect on debt ratio and net interest cost. Interest burden continued to fall after being listed in small corporation, and it couldn't find the investment profitability, nor could it utilize ROE, ROI variable. ROE, ROI continued to fall after being listed, but current ratio and quick ratio increased significantly in small corporation. From this results, we can infer that the financial liquidity showed signs of improvement after being listed.

• International Area Studies Review
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• v.21 no.1
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• pp.59-77
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• 2017

Diversification strategy is important for the enterprise which intends to expand its competitive advantage. However, it is not always a success because of its different form and level which brings us totally different results also. This study analysis the effect from diversification strategy on firm performance and we divided the diversification strategy into two different level: products diversification level and international diversification level. We select financial data from 88 China listed enterprises during the year from 2008-2013 and use fixed effect model to do the analysis. According to the result, there is a positive effect between diversification strategy and firm value. A company which has the higher products diversification level and international diversification level will more possibly achieve success in diversification strategy. However, there is no significant effect on firm's profit. Considering the time effect of profit, we used after 1 year profit data and find that the enterprise which has a higher level of international diversification will have less profit, but there is also no significant effect between product diversification and firm's profit.

• The Journal of the Korea Contents Association
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• v.12 no.4
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• pp.401-406
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• 2012

Shanghai Stock Exchange is the largest stock exchange of emerging markets that there were listed firms 905, listed securities 1,537, listed stocks 949, total number of listed stocks 2 trillion 2000 billion shares. There is more development that is expected to occur in the future. The purpose of this study is to find determinants of capital structure to listed manufacturing firms in Shanghai Stock Exchange using multiple regression. Conclusions of this study are summarized as follows. First, firm size is positively related to debt ratio significantly at 1% significance level.. Second, the profitability is negatively related to debt ratio significantly at 1% significance level. Third, the growth ability is positively related to debt ratio significantly at 1% significance level. fourth, cash flow, the largest shares ownership, negotiable shares ratio are negatively related to debt ratio but they are not significant statistically. The result of this study provides information for investors and can be utilized to improvement of financial structure.