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Using the survey data from Chinese private firms, this study investigates how the ruling Party affects firms’ treatment to their employees. We document a significant positive relationship between Party branch and employment protection. Specifically, firms with Party branch are more likely to sign labor contracts and provide stable jobs to their employees. Moreover, this effect is more prominent in regions with higher unemployment rate and in firms with labor union. Our findings highlight the Communist Party branch as an important communication bridge between the government and firms, which transfers public governance goals to firms, and then promotes employee-friendly practices.
Youliang Yan; Xixiong Xu. The role of communist party branch in employment protection: evidence from Chinese private firms. Asia-Pacific Journal of Accounting & Economics 2021, 1 -22.
AMA StyleYouliang Yan, Xixiong Xu. The role of communist party branch in employment protection: evidence from Chinese private firms. Asia-Pacific Journal of Accounting & Economics. 2021; ():1-22.
Chicago/Turabian StyleYouliang Yan; Xixiong Xu. 2021. "The role of communist party branch in employment protection: evidence from Chinese private firms." Asia-Pacific Journal of Accounting & Economics , no. : 1-22.
This study examines the role of affiliation with the ruling Communist Party in corporate environmental investment. Using a nationwide survey of Chinese private firms, we find that the Party membership of private entrepreneurs has a positive effect on corporate environmental investment, which suggests that Party status severs as a communication bridge and goal coordinator between the government and firms, thus encouraging them to participate more in environmental activities. Furthermore, this effect is more prominent when firms are located in regions with stricter legal supervision and lower levels of corruption, involve in a government-created business association and have better performance in profitability. Mechanism tests show that entrepreneurs with Party membership will promote firms to form a closer government-firm interaction and develop a better sense of social responsibility. Our findings highlight the entrepreneur’s Party status as an important driver of environmentally responsible corporate decision-making.
Youliang Yan; Xixiong Xu. Does Entrepreneur Invest More in Environmental Protection When Joining the Communist Party? Evidence from Chinese Private Firms. Emerging Markets Finance and Trade 2020, 1 -22.
AMA StyleYouliang Yan, Xixiong Xu. Does Entrepreneur Invest More in Environmental Protection When Joining the Communist Party? Evidence from Chinese Private Firms. Emerging Markets Finance and Trade. 2020; ():1-22.
Chicago/Turabian StyleYouliang Yan; Xixiong Xu. 2020. "Does Entrepreneur Invest More in Environmental Protection When Joining the Communist Party? Evidence from Chinese Private Firms." Emerging Markets Finance and Trade , no. : 1-22.
This paper examines the effect of cultural factors on the use of trade credit, an important non-formal financial channel. Using a sample of Chinese listed companies from 2007–2017, we find that firms headquartered in regions with a stronger Confucianism atmosphere can obtain more trade credit than their peers elsewhere. Further, the positive association between Confucianism and trade credit is more prominent for non-state-owned enterprises and firms located in regions with underdeveloped financial markets. Overall, our results highlight that Confucian culture—as an implicit value norm and an ethical philosophy—plays an important positive role in fostering honesty, and thus, promoting the use of trade credit. It enriches the literature on the determinants of trade credit and provides insights on the impact of Confucianism on corporate behavior and its underlying mechanism.
Wanli Li; Xixiong Xu; Zhineng Long. Confucian Culture and Trade Credit: Evidence from Chinese Listed Companies. Research in International Business and Finance 2020, 53, 101232 .
AMA StyleWanli Li, Xixiong Xu, Zhineng Long. Confucian Culture and Trade Credit: Evidence from Chinese Listed Companies. Research in International Business and Finance. 2020; 53 ():101232.
Chicago/Turabian StyleWanli Li; Xixiong Xu; Zhineng Long. 2020. "Confucian Culture and Trade Credit: Evidence from Chinese Listed Companies." Research in International Business and Finance 53, no. : 101232.
While China’s economic development has made tremendous progress, it has also caused serious environmental pollution problems. This paper uses the date of the Chinese Private Enterprise Survey (CPES) to empirically investigate the impact of Confucianism on corporate environmental investment and its internal mechanism. The results show that: (1) Confucianism plays a significant role in corporate environmental investment. (2) In the areas where environmental regulation is relatively weak, Confucianism has a more significant effect on promoting corporate environmental investment. (3) The positive influence of Confucianism on corporate environmental investment is more obvious in heavy polluting industries. This paper’s conclusions deepen the theoretical cognition of the economic consequences of Confucianism and enrich the relevant literature on the subject of Confucianism. At the same time, this paper also expands the understanding of the determinants of corporate environmental investment from the perspective of the informal institution.
Xixiong Xu; Lingling Duan; Youliang Yan. The Influence of Confucianism on Corporate Environmental Investment: Evidence from Chinese Private Firms. Sustainability 2019, 11, 5941 .
AMA StyleXixiong Xu, Lingling Duan, Youliang Yan. The Influence of Confucianism on Corporate Environmental Investment: Evidence from Chinese Private Firms. Sustainability. 2019; 11 (21):5941.
Chicago/Turabian StyleXixiong Xu; Lingling Duan; Youliang Yan. 2019. "The Influence of Confucianism on Corporate Environmental Investment: Evidence from Chinese Private Firms." Sustainability 11, no. 21: 5941.
This paper investigates the impact of CFO gender on corporate cash holdings and its underlying mechanism. Based on both precautionary savings theory and agency theory, we propose two competing hypotheses to investigate the association between CFO gender and corporate cash holdings. Using a sample of Chinese listed firms during the period from 2007 to 2015, we find that firms with female CFOs hold substantially more cash, which favors the precautionary savings-based explanation. Further analyses indicate that this effect is more pronounced in financially constrained firms and non-SOEs. We also find that female CFO-led firms are more likely to hold excess cash, hence damaging the value of cash holdings. Furthermore, we document that the enhancement of the female CFOs’ abilities helps to alleviate the impact of gender differences on cash holdings. Overall, our study highlights the critical role played by CFO gender in shaping corporate cash policy.
Xixiong Xu; Wanli Li; Yaoqin Li; Xing Liu. Female CFOs and corporate cash holdings: Precautionary motive or agency motive? International Review of Economics & Finance 2019, 63, 434 -454.
AMA StyleXixiong Xu, Wanli Li, Yaoqin Li, Xing Liu. Female CFOs and corporate cash holdings: Precautionary motive or agency motive? International Review of Economics & Finance. 2019; 63 ():434-454.
Chicago/Turabian StyleXixiong Xu; Wanli Li; Yaoqin Li; Xing Liu. 2019. "Female CFOs and corporate cash holdings: Precautionary motive or agency motive?" International Review of Economics & Finance 63, no. : 434-454.
This study investigates the impact of corruption on corporate cash holdings in China. The political extraction argument predicts that firms might shelter liquid assets to avoid extraction by corrupt officials. Using data on A-shared listed firms between 2007 and 2012, we find that firms located in more corrupt regions hold less cash, supporting this hypothesis. Political resources help to diminish the risk of exploitation, reducing the extent to which liquid assets are sheltered. We find that the negative association between corruption and cash holding is more significant for non-state-owned enterprises (Non-SOEs) than for state-owned enterprises (SOEs). Moreover, the cash holdings of Non-SOEs without political connections are more sensitive to corruption than those of Non-SOEs with political connections. These findings demonstrate that expropriation by corrupt officials is an important factor driving firms to manage liquidity.
Xixiong Xu; Yaoqin Li. Local corruption and corporate cash holdings: Sheltering assets or agency conflict? China Journal of Accounting Research 2018, 11, 307 -324.
AMA StyleXixiong Xu, Yaoqin Li. Local corruption and corporate cash holdings: Sheltering assets or agency conflict? China Journal of Accounting Research. 2018; 11 (4):307-324.
Chicago/Turabian StyleXixiong Xu; Yaoqin Li. 2018. "Local corruption and corporate cash holdings: Sheltering assets or agency conflict?" China Journal of Accounting Research 11, no. 4: 307-324.
We investigate the impact of China's anti-corruption campaign on corporate innovation. Our empirical results corroborate a significant positive association between anti-corruption intensity and firm's R&D expenditures, which indicate that firms headquartered in provinces with stronger anti-corruption efforts are less likely to choose relation-orientated strategy, and thus invest more in R&D activities. In addition, compared with SOEs, the positive effect of anti-corruption on R&D spending is more pronounced for Non-SOEs. This paper provides insights for understanding the impact of corrupt environment on firm performance and its underlying path.
Weiyu Gan; Xixiong Xu. Does anti-corruption campaign promote corporate R&D investment? Evidence from China. Finance Research Letters 2018, 30, 292 -296.
AMA StyleWeiyu Gan, Xixiong Xu. Does anti-corruption campaign promote corporate R&D investment? Evidence from China. Finance Research Letters. 2018; 30 ():292-296.
Chicago/Turabian StyleWeiyu Gan; Xixiong Xu. 2018. "Does anti-corruption campaign promote corporate R&D investment? Evidence from China." Finance Research Letters 30, no. : 292-296.
Yaoqin Li; Xixiong Xu; Weiyu Gan. Political extraction and corporate cash holdings in China. Asian-Pacific Economic Literature 2018, 32, 76 -94.
AMA StyleYaoqin Li, Xixiong Xu, Weiyu Gan. Political extraction and corporate cash holdings in China. Asian-Pacific Economic Literature. 2018; 32 (2):76-94.
Chicago/Turabian StyleYaoqin Li; Xixiong Xu; Weiyu Gan. 2018. "Political extraction and corporate cash holdings in China." Asian-Pacific Economic Literature 32, no. 2: 76-94.
Based on signaling and gender discrimination theory, we examine whether chief financial officer (CFO) gender matters to bank–firm relationships and the designing of collateral clauses in bank loan contracting, and explore the potential path of influence. Data taken from Chinese listed companies between 2009 and 2012 indicate that (1) female-CFO-led firms are less likely to obtain credit loans than male-CFO-led firms; (2) female-CFO-led borrowers are more likely to be required to provide collateral for loans than male-CFO-led borrowers; and (3) banks are more inclined to claim mortgaging collateral when lending to female-CFO-led firms and prefer to guarantee collateral when lending to male-CFO-led firms. Female-CFO-led borrowers seem to be granted more unfavorable loan terms than male-CFO-led borrowers, supporting the hypothesis that female CFOs experience credit discrimination. Further analysis reveals that regional financial development helps to alleviate lending discrimination against female CFOs. Furthermore, female CFOs in SOEs are less likely than their non-SOE counterparts to experience gender discrimination in the credit market.
Xixiong Xu; Yaoqin Li; Mengmeng Chang. Female CFOs and loan contracting: Financial conservatism or gender discrimination? – An empirical test based on collateral clauses. China Journal of Accounting Research 2016, 9, 153 -173.
AMA StyleXixiong Xu, Yaoqin Li, Mengmeng Chang. Female CFOs and loan contracting: Financial conservatism or gender discrimination? – An empirical test based on collateral clauses. China Journal of Accounting Research. 2016; 9 (2):153-173.
Chicago/Turabian StyleXixiong Xu; Yaoqin Li; Mengmeng Chang. 2016. "Female CFOs and loan contracting: Financial conservatism or gender discrimination? – An empirical test based on collateral clauses." China Journal of Accounting Research 9, no. 2: 153-173.