Affiliated management and firm value: Evidence from China

Zheng, Gaoping; Xue, Jianru; Chen, Xiao

doi:10.1080/21697213.2014.921366

Cited by 4 publications

(3 citation statements)

References 30 publications

(53 reference statements)

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“…There are many ways to measure the company's value, including ROA, ROE, EPS, the sustainable growth rate, cumulative excess earnings CAR, and Tobin's Q [26][27][28][29][30][31][32][33][34], and there are many different ways to calculate Tobin's Q [29][30][31][32][33]. Table 1 shows the equation used in this paper.…”

Section: Firm Valuementioning

confidence: 99%

Cumulative Effect, Targeted Poverty Alleviation, and Firm Value: Evidence from China

Xiong

Long

2022

Sustainability

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This paper studies the influence of the annual cumulative earnings of Chinese listed TPA (targeted poverty alleviation) companies before 2004 on the companies’ value using data from 2012 to 2019, measures the long-term earnings persistence of these companies with the variable of the cumulative earnings averaged by the market price of each company at the current year’s end, and obtains a model of the company’s value combined with each company’s earnings persistence and the long-term competitive strength of its products. The cumulative data from 2004 to 2012, 2005 to 2013, and 2011 to 2019 provide the data used for regression from 2012 to 2019. The TPA companies’ value is affected by long-term cumulative net profits and long-term competitive advantage. The higher the company’s accumulated net profit, the longer the duration of the long-term competitive advantage, the more stable the company’s value increase, and the higher the quality of the value increase.

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Section: Firm Valuementioning

confidence: 99%

Cumulative Effect, Targeted Poverty Alleviation, and Firm Value: Evidence from China

Xiong

Long

2022

Sustainability

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“…Especially in high-level financially developed regions, financing will be easier to be obtained in the market, thereby improving the level of vertical integration. Zheng et al. (2014) employed the ratio of the balance of deposits and loans in each province to Gross Domestic Production (GDP) as an indicator of the regional financial development level, and they also concluded that financial development can promote the adoption of integrated forms by enterprises.…”

Section: Introductionmentioning

confidence: 99%

The impact of digital finance development on vertical specialization: evidence from A-share listed companies in China

Jia

Wang

2022

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PurposeThis study intends to explore the relationship between digital finance and the vertical specialization of firms. The following questions are discussed: (1) As a representative new financial development model, what is the role of digital finance in the vertical specialization of firms? (2) If digital finance improves the level of vertical specialization of firms, what is the mechanism behind such improvement? (3) How does digital finance impact the vertical specialization of firms in different regions, industries, and firms?Design/methodology/approachA two-way fixed-effect model of panel data is proposed to verify the relationship between digital finance and the vertical specialization of firms. This model is constructed by matching the city-level data of digital finance with the data of China's A-share listed companies from 2011 to 2018. Meanwhile, the instrumental variable (IV) method and difference-in-difference (DID) method are adopted to deal with the endogeneity problem of the model.FindingsThe authors' study finds that digital finance has significantly improved the level of vertical specialization of firms. The result is robust under the endogeneity consideration and a series of robustness tests. After the dimensionality of the index is reduced, the depth of digital finance usage is more conducive to the improvement of the vertical specialization of firms compared with the width of digital finance coverage and the level of financial digitization. Digital finance mainly improves the level of vertical specialization of firms by reducing transaction costs and increasing the market thickness of the intermediate products. Moreover, digital finance has certain heterogeneity in promoting the vertical specialization of firms, an effect that is more significant in the eastern region, manufacturing industry and state-owned enterprises (SOEs).Research limitations/implicationsThe first limitation is the mechanism test. This research only analyzes the mechanism from transaction cost and the market thickness of the intermediate products. With the rapid development of information technology, digital finance will be further integrated into people's production and life. There will then be more mechanisms that should be explored between digital finance and the vertical specialization of firms. Another limitation is the data sample of this paper. The conclusions of this research are based only on the data of listed companies. However, in the authors' opinion, the specialization level of small and medium-sized enterprise (SMEs) should be higher. Therefore, the conclusions of this work are underestimated, which can be considered as the lower limit of digital finance for enterprise specialization.Social implicationsAs a favorable financing channel to supplement traditional financial service functions, digital finance plays a critical role in the operating efficiency of enterprises and the effective allocation of macro resources. The authors' research shows that digital finance has significantly improved the vertical specialization of firms. This conclusion provides guides to improve the production efficiency of enterprises and the quality of economic development.Originality/valueThis paper has three main contributions. (1) The relationship between financial development and the vertical specialization of firms is innovatively discussed from the perspective of digital finance, which implies that digital finance can effectively promote the level of vertical specialization of firms. (2) This paper provides new perspectives and ideas to reveal the impact mechanism of digital finance on the real economy by systematically analyzing the mechanism of digital finance on the vertical specialization of firms from the perspectives of transaction costs and financing constraints. (3) The regional differences in the development of digital finance, industry differences in the vertical specialization of firms and differences in the nature of enterprise property rights are all under consideration, which improves the effectiveness and pertinence of digital finance in promoting the vertical specialization of firms.

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“…Nilai perusahaan dicerminkan sejumlah indikator, yaitu Price to Book Value (PBV) dan Tobin's Q. Jika kedua indikator ini meningkat artinya nilai perusahaan juga mengalami peningkatan. Khairiyani (2018), Zheng, Xue, & Chen (2014), dan Zhong & Zhang (2018) telah menggabungkan kedua indikator di atas untuk mengukur nilai perusahaan. Bursa Efek Indonesia mempunyai beberapa indeks.…”

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Kebijakan Investasi, Pendanaan, Dan Dividen Sebagai Determinan Nilai Perusahaan

Mubyarto¹,

Khairiyani²

2019

jamal

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Kebijakan Investasi, Pendanaan, dan Dividen sebagai Determinan Nilai Perusahaan. Penelitian ini berupaya untuk menelaah dampak kebijkan investasi, pendanaan, dan dividen terhadap nilai perusahaan. Metode analisis yang digunakan adalah SEM-PLS pada perusahaan LQ-45 periode 2015-2017. Penelitian ini menemukan bahwa investasi yang dilakukan dalam jangka waktu pendek belum memacu nilai perusahaan. Implikasinya, perusahaan harus memilih jenis investasi dengan memperhatikan kurun waktu. Pada sisi lainnya, kebijakan pendanaan mampu memicu pertumbuhan nilai perusahaan karena dapat meminimalisasi konflik keagenan. Adapun kebijakan dividen dipandang penting bagi investor karena dapat meningkatkan kesejahteraannya.

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Affiliated management and firm value: Evidence from China

Cited by 4 publications

References 30 publications

Cumulative Effect, Targeted Poverty Alleviation, and Firm Value: Evidence from China

Cumulative Effect, Targeted Poverty Alleviation, and Firm Value: Evidence from China

The impact of digital finance development on vertical specialization: evidence from A-share listed companies in China

Kebijakan Investasi, Pendanaan, Dan Dividen Sebagai Determinan Nilai Perusahaan

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