We find that agency problems are embedded in firm's excess and abnormal equity investments that are mainly dictated by controlling shareholder's motives and ethical choices manifested in ownership and board structure. The excess equity investment is gauged with respect to industry average. The abnormal equity investment is specifically referred to the number of nominal investment companies that are fully controlled by the controlling owners while subject to little governance. Our empirical evidences of 345 Taiwanese non-financial listed firms show that firm's (...) excess and abnormal equity investments are negatively correlated with controlling shareholder's cash flow rights while are positively correlated with the control-cash flow deviation, and board affiliation. The results are supportive of the positive incentive hypothesis and the negative entrenchment hypothesis put forth by La Porta et al. and Claessen et al.. The negative relation between equity investment and firm's value further supports the agency postulation that corporate excess and abnormal equity investments represent a leeway for controlling shareholder to exploit wealth of minority shareholders. This study potentially contributes to the literature of business ethics by portraying an empirically testable linkage from controlling owner's ethical choices to his actions and therefore firm's value. (shrink)
We find that agency problems are embedded in firm's excess and abnormal equity investments that are mainly dictated by controlling shareholder's motives and ethical choices manifested in ownership and board structure. The excess equity investment is gauged with respect to industry average. The abnormal equity investment is specifically referred to the number of nominal investment companies that are fully controlled by the controlling owners while subject to little governance. Our empirical evidences of 345 Taiwanese non-financial listed firms show that firm's (...) excess and abnormal equity investments are negatively correlated with controlling shareholder's cash flow rights while are positively correlated with the control-cash flow deviation, and board affiliation. The results are supportive of the positive incentive hypothesis and the negative entrenchment hypothesis put forth by La Porta et al. (2002, Journal of Finance 57, 1147-1171) and Claessen et al. (2002, Journal of Finance 57, 2741-2742). The negative relation between equity investment and firm's value further supports the agency postulation that corporate excess and abnormal equity investments represent a leeway for controlling shareholder to exploit wealth of minority shareholders. This study potentially contributes to the literature of business ethics by portraying an empirically testable linkage from controlling owner's ethical choices to his actions and therefore firm's value. (shrink)
The emergence of new biological traits is landmarks of evolutionary progress. However, when, how, and why do they appear? We propose a universal mechanism, a Buffering Mechanism of Evolution to understand these questions. We speculate that all organisms possess this potential buffer capacity. This capacity would be triggered by the pressures, natural or artificial, to express the intrinsic potential variants. The potential buffer capacity of the organism increases for further selections as evolutionary progress occurs. The higher the evolutionary level of (...) the organism, the greater the potential buffer capacity, and importantly, the buffer capacity versus the pressures of selections will result. However, when the pressures are far more than the potential capacity of the targets, the natural or artificial pressures then compromise the genetic buffering system resulting in possible species extinction if the emergence of new traits fails. (shrink)
Does being green facilitate product innovation? This study examines whether green management in firms operating in China fosters radical product innovation to a greater extent than it does incremental product innovation and investigates the underlying institutional mechanisms involved in the relationship between green management and product innovation. The findings show that green management is more likely to lead to radical product innovation than to incremental product innovation. Moreover, government support as a formal institutional benefit more strongly mediates the effect of (...) green management on radical product innovation than its effect on incremental product innovation; whereas social legitimacy as an informal institutional benefit more strongly mediates the effect of green management on incremental product innovation than its effect on radical product innovation. These findings provide important implications for explaining how firms employ green management to facilitate product innovation. (shrink)
In this paper we examine how English and Mandarin speakers think about time, and we test how the patterns of thinking in the two groups relate to patterns in linguistic and cultural experience. In Mandarin, vertical spatial metaphors are used more frequently to talk about time than they are in English; English relies primarily on horizontal terms. We present results from two tasks comparing English and Mandarin speakers’ temporal reasoning. The tasks measure how people spatialize time in three-dimensional space, including (...) the sagittal (front/back), transverse (left/right), and vertical (up/down) axes. Results of Experiment 1 show that people automatically create spatial representations in the course of temporal reasoning, and these implicit spatializations differ in accordance with patterns in language, even in a non-linguistic task. Both groups showed evidence of a left-to-right representation of time, in accordance with writing direction, but only Mandarin speakers showed a vertical top-to-bottom pattern for time (congruent with vertical spatiotemporal metaphors in Mandarin). Results of Experiment 2 confirm and extend these findings, showing that bilinguals’ representations of time depend on both long-term and proximal aspects of language experience. Participants who were more proficient in Mandarin were more likely to arrange time vertically (an effect of previous language experience). Further, bilinguals were more likely to arrange time vertically when they were tested in Mandarin than when they were tested in English (an effect of immediate linguistic context). (shrink)
Moral problems often prompt emotional responses that invoke intuitive judgments of right and wrong. While emotions inform judgment across many domains, they can also lead to ethical failures that could be avoided by using a more deliberative, analytical decision-making process. In this article, we describe joint evaluation as an effective tool to help decision makers manage their emotional assessments of morality.
This study examines perceptions of ethical climate and ethical practices of 118 successful Chinese managers among business students and managen in the Zhejiang province of China. The impact of different ethical climate types on perceived ethical practices of successful managers was also investigated. The "rules'* was the most reported, and '' independence'' was the least reported, among the various climate types. A majority of the respondents perceive successful managers as ethical. In addition, those who believed that their organization had a (...) "rules" climate perceived a strong positive link between success and ethical behavior. None of the other climate types had an impact on the link between success and ethical behavior. (shrink)
This study explores cultural influence on corporate behavior employing the case of merchant guild culture in China and further the moderating role of Marketization. Using hand-collected data on merchant guild culture, we find that merchant guild culture is significantly negatively associated with owner-manager agency costs, suggesting that merchant guild culture in ancient China still has its continuous and remarkable effects on managerial behavior in contemporary corporations. This finding also implies that merchant guild culture motivates managers to upgrade the efficiency of (...) controlling operating costs, reduces agency conflicts between management and shareholders, and eventually mitigates owner-manager agency costs. Moreover, provincial Marketization level attenuates the negative association between merchant guild culture and owner-manager agency costs. Above results are robust to a variety of alternative measures of merchant guild culture and owner-manager agency costs. Furthermore, our findings are still valid after controlling for the potential endogeneity between merchant guild culture and owner-manager agency costs. (shrink)
This study extends previous literature on the association between corporate social responsibility and corporate financial behavior by investigating the influence of corporate environmental performance on the cost of debt. Using a sample of Chinese private-owned firms, we document strong and consistent evidence to show that corporate environmental performance is significantly negatively associated with the interest rate on debt—the proxy for the cost of debt. The findings suggest that lenders applaud better environmental performance. Moreover, internal control attenuates the negative association between (...) corporate environmental performance and the interest rate on debt, implying substitutive effects between corporate environmental performance and internal control on the reduction of interest rates on debt. The results are robust to various sensitivity tests and are still valid after controlling for the potential endogeneity between corporate environmental performance and the interest rate on debt. (shrink)
The intuitionistic fuzzy calculus, based on the basic operational laws of intuitionistic fuzzy numbers, has been put forward. However, the interval-valued IFC, based on the basic operational laws of interval-valued IFNs, is only in the original stage. To further develop the theory of the IVIFC and make it be rigorous, the primary task is to systematically investigate the characteristics of the limits and differentials, which is a foundation of the IVIFC. Moreover, there is quite a lot of literature on IVIFNs; (...) however, the scholars did not reveal the relationships between IFNs and the IVIFNs. To do that, we first investigate the limit of interval-valued intuitionistic fuzzy sequences, and then, we focus on investigating the limit, the continuity, and the differential of IVIFFs in detail and reveal their relationships. After that, due to the fact that the IFC and the IVIFC are based on the basic operational laws of IFNs and IVIFNs, respectively, we reveal the relationships between the IFNs and the IVIFNs via some homomorphic mappings. Finally, a case study about continuous data of IVIFNs is provided to illustrate the advantages of continuous data. (shrink)
Fractional complex chaotic systems have attracted great interest recently. However, most of scholars adopted integer real chaotic system and fractional real and integer complex chaotic systems to improve the security of communication. In this paper, the advantages of fractional complex chaotic synchronization in secure communication are firstly demonstrated. To begin with, we propose the definition of fractional difference function synchronization according to difference function synchronization of integer complex chaotic systems. FDFS makes communication secure based on FCCS possible. Then we design (...) corresponding controller and present a general communication scheme based on FDFS. Finally, we respectively accomplish simulations which transmit analog signal, digital signal, voice signal, and image signal. Especially for image signal, we give a novel image cryptosystem based on FDFS. The results demonstrate the superiority and good performances of FDFS in secure communication. (shrink)
The logic FBCI given by linearly ordered BCI-matrices is known not to be an axiomatic extension of the well-known BCI logic. In this paper we axiomatize FBCI by adding a recursively enumerable set of schemes of inference rules to BCI and show that there is no finite axiomatization for FBCI.
The Pearl River Mouth Basin, located on the northern continental margin of the South China Sea, underwent a complex evolution during the Paleogene. We have focused on the Baiyun Sag in the PRMB with the goal of constructing the architecture and depositional evolution of the Eocene–Early Oligocene synrift stage to the Late Oligocene early postrift stage of basin evolution. Based on analysis of 3D seismic data complemented by well logs and cores, the Paleogene basin fills can be classified into three (...) composite sequences bounded by regional unconformities and 14 sequences bounded by local unconformities. We identify seismic facies on the basis of different internal reflection configurations, external shapes, and contact relationships. The distribution of seismic facies and lithologies interpreted from gamma-ray curves reveal that the synrift basin fill consists mainly of fan delta deposits adjacent to the southern fault scarp, braid delta deposits on the adjacent hanging-wall blocks, and lacustrine mudstones and sublacustrine fan deposits in the center of the basin. The overlying early postrift stage is dominated by shelf and shelf-slope environments, with widespread developed southward-prograding deltas and submarine fans. Tectonics is the principal controlling factor on the development and distribution of depositional systems during the synrift stage. In contrast, sea-level changes superimposed on long-term subsidence related to thermal cooling determined the stacking patterns of sequences during the postrift stage. The results provide new insights on synrift and early postrift tectonics and sedimentation patterns along an evolving passive margin. (shrink)
People are adept at perceiving interactions from movements of simple shapes, but the underlying mechanism remains unknown. Previous studies have often used object movements defined by experimenters. The present study used aerial videos recorded by drones in a real-life environment to generate decontextualized motion stimuli. Motion trajectories of displayed elements were the only visual input. We measured human judgments of interactiveness between two moving elements and the dynamic change in such judgments over time. A hierarchical model was developed to account (...) for human performance in this task. The model represents interactivity using latent variables and learns the distribution of critical movement features that signal potential interactivity. The model provides a good fit to human judgments and can also be generalized to the original Heider–Simmel animations. The model can also synthesize decontextualized animations with a controlled degree of interactiveness, providing a viable tool for studying animacy and social perception. (shrink)