Effects of cultural ethnicity, firm size, and firm age on senior executives’ trust in their overseas business partners: Evidence from China

Jiang, Crystal X.; Chua, Roy Y. J.; Kotabe, Masaaki; Murray, Janet Y.

doi:10.1057/jibs.2011.35

Cited by 90 publications

(96 citation statements)

References 101 publications

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“…In finance, the term leverage is commonly used to describe a firm's ability to use assets or funds that have a fixed burden to enlarge income levels for firm owners (Gill & Shah, 2011). (Jiang, Chua, Kotabe, & Murray, 2011) stated that the use of leverage is intended to improve the company profitability.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

“…The term leverage is usually used to describe a firm's ability to use assets or funds that have a fixed cost to increase the income level for the firm owner (Gill & Shah, 2011). Thus, the main purpose of a firm using leverage is to increase its profits (Jiang et al, 2011). However, the earned profit must be paid in advance for the firm's debt costs.…”

Section: The Effect Of Leverage On Cash Holdingsmentioning

confidence: 99%

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Leverage, Asymmetric Information, Firm Value, and Cash Holdings in Indonesia

Cheryta¹,

Moeljadi²,

Indrawati³

2018

Jurnal Keuangan Dan Perbankan

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This research aimed to analyze the effect of leverage and asymmetry information on the firm value through cash holding as mediation variable. The populations of this research were all the firms which listed on the Indonesia Stock Exchange since 2012 -2015. A sample of this research was saturated sample and census, consisted 56 firms related the population criteria. This research used secondary data from the firm financial report through path analysis method. This research showed that leverage had a negative effect on the cash holdings, asymmetry information had a negative effect on the firm value through cash holding, and cash holding had a negative effect on the firm value. With leverage and effect on cash, holding cannot affect the firm value, due to investor risk-averse, investor risk seeker, and neutral investor has their own point of view in assessing the company. Cash holdings can lead to asymmetric information that can lead to agency conflict that can affect a company's performance, so that indirectly, with the existence of asymmetry information had an effect on the declining the firm value.

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Section: Hypotheses Developmentmentioning

confidence: 99%

Section: The Effect Of Leverage On Cash Holdingsmentioning

confidence: 99%

Leverage, Asymmetric Information, Firm Value, and Cash Holdings in Indonesia

Cheryta¹,

Moeljadi²,

Indrawati³

2018

Jurnal Keuangan Dan Perbankan

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show abstract

“…Although strong ties play a crucial role because of the trust, reciprocity, and the sensitive information they possess [8,22,68,69], this may have to be complementary rather than in place of weak ties and the diverse opportunities they provide. As Burt [6] argues, strong and weak ties play different roles for different purposes or in different populations.…”

Section: Contributionmentioning

confidence: 99%

Role of Strong versus Weak Networks in Small Business Growth in an Emerging Economy

Kozan

Akdeniz

2014

Administrative Sciences

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Abstract:The study tests whether strong rather than weak ties account for small business growth in Turkey. Data were collected by means of a questionnaire filled out by the owners of small firms operating in four cities. Growth is comprised of two main areas, production expansion and knowledge acquisition. Results show that strong ties are positively related to both types of growth. In contrast, loose ties have no effect on small business growth in either area. This finding is attributed to the influence of the collectivistic nature of the mainstream Turkish culture, where owners of small businesses are likely to rely on in-groups rather than out-groups for advice and for financial support. Implications of relative absence of weak ties for small business growth and innovation in emerging economies are discussed. The findings suggest that culture should be included as a contingency variable in future studies of network strength and growth relationship. The paper also discusses the possible moderating role of affective and cognition-based trust in the relation of strong and weak ties to small business growth.

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“…Although small firms usually suffer from limited bargaining power and rarely can structure deals to their full advantage (Jiang, Chua, Kotabe, & Murray, 2011;Pfeffer & Salancik, 1978), managers of large-scale SOEs have less incentive to maximize firm profits (Aharoni, 2000), so they might be more willing to offer favorable transactional conditions to the small firms to which they have ties. Furthermore, business-minded managers of large-scale SOEs have interests in pursuing economic returns for their firms (Okhmatovskiy, 2010).…”

Section: Firm Size and The Liability Of Smallnessmentioning

confidence: 99%

Performance implications of ties to large-scale state-owned enterprises and banks in an emerging economy

et al. 2016

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This paper examines how ties to large-scale state-owned enterprises and ties to banks affect firm performance in emerging economies. The findings, obtained from survey data collected from 208 firms in the Chinese manufacturing industry, indicate that both categories of ties improve firm performance. The value of the two categories of ties changes in organizational contexts that vary in terms of the moderators of size, age, and firm strategy. Specifically, ties to banks improve the performance of younger firms significantly more than that of older firms, while ties to large-scale state-owned enterprises improve the performance of smaller firms significantly more than that of larger firms.

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Effects of cultural ethnicity, firm size, and firm age on senior executives’ trust in their overseas business partners: Evidence from China

Cited by 90 publications

References 101 publications

Leverage, Asymmetric Information, Firm Value, and Cash Holdings in Indonesia

Leverage, Asymmetric Information, Firm Value, and Cash Holdings in Indonesia

Role of Strong versus Weak Networks in Small Business Growth in an Emerging Economy

Performance implications of ties to large-scale state-owned enterprises and banks in an emerging economy

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