Managerial diversion, product market competition, and firm performance

被引：2
|
作者：
Li, Guangzhong [1 ]
Li, Jie [2 ,3 ]
机构：
[1] Sun Yat Sen Univ, Business Sch, Guangzhou, Guangdong, Peoples R China
[2] Jinan Univ, Inst Ind Econ, 601 West Huangpudadao Ave, Guangzhou 510632, Guangdong, Peoples R China
[3] Jinan Univ, Inst Ind Org & Regulat, 601 West Huangpudadao Ave, Guangzhou 510632, Guangdong, Peoples R China
来源：
CHINA ECONOMIC REVIEW | 2018年 / 50卷
基金：
中国国家自然科学基金;
关键词：
Executive compensation; Managerial diversion; Product market behavior; State-owned enterprises; China; CAPITAL STRUCTURE; CORPORATE GOVERNANCE; AGENCY COSTS; BEHAVIOR; FINANCE; PERKS;
D O I：
10.1016/j.chieco.2018.04.009
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We derive the conditions under which a manager will divert and how managerial diversion affects product market performance and firm profits. Our model predicts that managerial diversion is more likely to occur and leads to more aggressive product market behavior in a firm with weak incentives and corporate governance. In these firms, the relation between managerial diversion and firm profits is inverse U-shaped. Chinese state-owned manufacturing firms are used to test our theoretical model, and we find supportive evidence.
引用
收藏
页码：240 / 264
页数：25
相关论文
共 50 条
  • [21] Capital structure, product market competition and firm performance: Evidence from South Africa
    Fosu, Samuel
    [J]. QUARTERLY REVIEW OF ECONOMICS AND FINANCE, 2013, 53 (02): : 140 - 151
  • [22] A MANAGERIAL MODEL OF THE EFFECT OF PRODUCT MARKET-STRUCTURE ON FIRM LOCATION
    ALLEN, RC
    RABIANSKI, JS
    STONE, JH
    [J]. JOURNAL OF REGIONAL SCIENCE, 1986, 26 (02) : 393 - 409
  • [23] Corporate social responsibility, product market competition, and firm value
    Sheikh, Shahbaz
    [J]. JOURNAL OF ECONOMICS AND BUSINESS, 2018, 98 : 40 - 55
  • [24] Managerial ability and firm performance: Evidence from an emerging market
    Inam Bhutta, Aamir
    Sheikh, Muhammad Fayyaz
    Munir, Aroosa
    Naz, Aroj
    Saif, Iqra
    [J]. COGENT BUSINESS & MANAGEMENT, 2021, 8 (01):
  • [25] Corporate social responsibility, product market competition, and product market performance
    Wu Han
    Yu Zhuangxiong
    Li Jie
    [J]. INTERNATIONAL REVIEW OF ECONOMICS & FINANCE, 2018, 56 : 75 - 91
  • [26] The Effect of Foreign Ownership and Product Market Competition on Firm Performance: Empirical Evidence from Vietnam
    Ha, Thach Xuan
    Tran, Thu Thi
    [J]. JOURNAL OF ASIAN FINANCE ECONOMICS AND BUSINESS, 2021, 8 (11): : 79 - 86
  • [27] Managerial risk-taking incentives, product market competition and welfare
    Dasgupta, S
    Shin, J
    [J]. EUROPEAN ECONOMIC REVIEW, 2004, 48 (02) : 391 - 401
  • [28] How does competition shape managerial decisions? Product market competition and financial statement comparability
    Majeed, Muhammad Ansar
    Yan, Chao
    Tauni, Muhammad Zubair
    [J]. MANAGEMENT DECISION, 2018, 56 (11) : 2437 - 2471
  • [29] Impact of R&D on Firm Performance: Do Ownership Structure and Product Market Competition Matter?
    Arif Khan, Muhammad
    Bin, Meng
    Wang, Chunlin
    Bilal, Hazrat
    Ali Khan, Arshad
    Ullah, Irfan
    Iqbal, Amjad
    Rahman, Mohib Ur
    [J]. SAGE OPEN, 2023, 13 (04):
  • [30] Competitive pressure and managerial decisions Product market competition and earnings quality in China
    Majeed, Muhammad Ansar
    Zhang, Xian-zhi
    [J]. CHINESE MANAGEMENT STUDIES, 2016, 10 (03) : 559 - 592
12345