Government intervention and firm investment: Evidence from international micro-data

Lin, Chen; Wong, Sonia M. L.

doi:10.1016/j.jimonfin.2012.06.002

Cited by 30 publications

(11 citation statements)

References 64 publications

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“…Secondly, in terms of internal financing, Cull and Xu (2005) find that Chinese firms exposed to a greater risk of expropriation by government have a lower reinvestment rate. Lin and Wong (2012) also provide evidence that the provision of good-quality institutions and services by government is positively associated with a firm's investment and sales growth.…”

Section: Institutional Quality and Firm Research And Development Actimentioning

confidence: 90%

Growing into an Innovative Economy

Zhou¹

2013

China: A New Model for Growth and Development

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Section: Institutional Quality and Firm Research And Development Actimentioning

confidence: 90%

Growing into an Innovative Economy

Zhou¹

2013

China: A New Model for Growth and Development

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“…The role of the government in transitional economies, which have evolved from centrally planned socialism to market-oriented capitalism, is widely debated in the economic and management literature (Boycko et al, 1996;Frye & Shleifer, 1997;Dewenter & Malatesta, 2001;Lin & Wong, 2013;Lee et al, 2014). Existing literature has studied the "supporting hand" and the "grabbing hand" approaches (Frye & Shleifer, 1997;Shleifer, 1998;Chen et al, 2017).…”

Section: Hypothesismentioning

confidence: 99%

Political embeddedness and firms' growth

Wang

2021

Kyklos

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This study examines whether and when political embeddedness affects firms' growth. Using a dataset of Chinese A-share firms from 2008 to 2017, we find that both organizational and individual political embeddedness in firms draws negative effects on corporate growth. Such effects mainly come from political embeddedness created by current and local political actors, compared with former and central ones. Moreover, the "grabbing effects" of political embeddedness vary contingent on focal firms' financial situation, political uncertainty, and regional economic and legal environment. That is, the "grabbing effects" are stronger for financially healthy firms than for financially distressed firms. Political uncertainty created by government official replacement refrains political actors from tunneling benefits from affiliated firms and mitigates the negative effects of political embeddedness. Both economic development and legal completeness are conducive to alleviating the "grabbing effects" of political embeddedness. Overall, our findings enrich and extend the "grabbing hand" theory.

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“…These shed light on network theory (Borgatti & Foster, 2003;Granovetter, 1973) by emphasizing the role played by the hotels and government agencies. Although there is a considerable body of literature on the role of government in capacity building, particularly training, to boost the skills base (e.g., Lin & Wong, 2013), the question of how firms respond and engage in capacity building in the face of looming competitive challenges has not been adequately addressed (Witt & Lewin, 2007). Although past studies have examined firm-level capacity building, little attention has been devoted to capacity building through collaborative partnership.…”

Section: Facilities and Services Capacity Buildingmentioning

confidence: 99%

Business and government interdependence in emerging economies: Insights from hotels in Ghana

Amankwah‐Amoah

Debrah

Honyenuga

et al. 2017

Journal of Tourism Research

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Although social science research is replete with scholarly works on capacity building, relatively few studies have focused on how government can induce capacity building among privately owned enterprises in emerging economies. We seek to fill the lacuna in our understanding by examining how a government can induce capacity building among privately owned enterprises.The study adopted a qualitative approach using semi-structured interviews with hotel owners, employees, and managers, as well as government officials in Ghana to examine the issue. We identified three unique stages through which such capacity-building initiatives unfold encompassing diagnosing, renewal, and customer centricity. The study revealed that capacity building through collaborative partnership was partly motivated by desire to overcome societal resistance to services seen as "tainted." The concluding section outlines a number of theoretical and practical implications. KEYWORDSAfrica, capacity building, Ghana, government, hotels | INTRODUCTIONOver the past four decades, accelerated globalization has been accompanied by the increasing contribution of services to the global economy (Jayaraman & Luo, 2006;Vargo & Lusch, 2004). In parallel, many governments have formulated and implemented industrial policies geared towards opening up their economies to capture the benefits of globalization. In many developing countries, capacity building is one such policy (Farazmand, 2009;Tjosvold, Peng, Chen, & Su, 2008). In general, such policy is consistent with findings from prior studies that have highlighted the view that governments can play a role in firm-level capacity building (Cammett, 2007;Cull, Navajas, Nishida, & Zeiler, 2015;Farazmand, 2009;Ha & Kang, 2015;Shao, Hernández, & Liu, 2015;Tjosvold et al., 2008). In many instances, governments in collaboration with companies, industries, customers, and suppliers have engaged in capacity-building initiatives to create a sustainable business model (see also Suntikul & Dorji, 2015).Yet a closer look at the existing literature suggests that, despite some research on business and government interdependence and collaboration (Tian, Shi, Hafsi, & Tian, 2017;Tjosvold et al., 2008;Wong, Wei, & Tjosvold, 2015) and capacity development (e.g., Farazmand, 2009;Stephens et al., 2017;Victurine, 2000), our understanding of capacity building through collaborative partnership between government and business remains severely limited (see Shao et al., 2015). By capacity building through collaborative partnerships, we are referring to a situation where multiple stakeholders are mobilized and resources marshalled towards building firms' capabilities and fulfilling their role within the national economy.Against this backdrop, the main purpose of this study is to examine how a government can induce capacity building among privately owned enterprises in an emerging economy. We focus on Ghana and the hotel industry for a number of reasons. Since the late 1950s, when Ghana gained independence, it has been touted as a "Bea...

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Government intervention and firm investment: Evidence from international micro-data

Cited by 30 publications

References 64 publications

Growing into an Innovative Economy

Growing into an Innovative Economy

Political embeddedness and firms' growth

Business and government interdependence in emerging economies: Insights from hotels in Ghana

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