Archive for the ‘5th Edition’ Category

Industrial Diversification and Shareholders’ Value in China: The Case of Shanghai Listed Manufacturing Firms

Wednesday, April 1st, 2009

by Jiong Jin and Henk von Eije

ABSTRACT

The fast growing economy and institutional and economic reforms made the Chinese equity markets the third largest in Asia. This leads to strategies of industrial diversification within Chinese firms. Financial theory suggests that industrial diversification may have advantages in emerging markets, because conglomerates are better able to cope with market imperfections than focused firms. Moreover, diversification through investing in many shares may be costly in imperfect markets. We show that Chinese diversified firms are underperforming in comparison to focused firms. The potential positive effects of industrial diversification are thus smaller than the negative effects. Hubris, agency costs, tunneling, propping, myopic shareholders, management history and inadequate regulation of shareholders’ interest may have contributed to the negative diversification effects in China.

Keywords: industrial diversification, firm value, panel study, China, Shanghai Stock Exchang

Experiential Insights From Managing Joint Ventures In Indonesia : Reflection On Past Lessons And Future Challenges

Wednesday, April 1st, 2009

by Teddy Pawitra

ABSTRACT

Joint ventures as one of the many forms of strategic alliance are now ubiquitous phenomena in most Asian countries such as Indonesia and others.  The trend  to establish joint ventures with foreign firms has been growing in popularity since  the onset of 1980s.  In 2007, the value of realized foreign direct investments in Indonesia had reached USD 9,076.6 million which represented 842 projects (Investment Coordinating Board, Oct. 2007) 1) However, particular data regarding the magnitude of investment in  joint ventures are not available because foreign direct investments are not further specified into joint ventures and wholly owned subsidiaries. The development of joint ventures is more discernible if we turn to the international business arena. Over the past few years more than 5000 joint ventures have been established and the largest world 100 joint ventures represent more than USD 350 billion in combined annual revenues (Bamford, Erns and Fubini, 2004).

Disinvestment in India – A Stakeholders’ Management Perspective

Wednesday, April 1st, 2009

by Amit Kumar Srivastava and Vilas Kulkarni

ABSTRACT

India adopted mixed economy after independence, aiming socialistic pattern, through heavy investment in the public sector enterprises (PSE) the performance of which later became a matter of concern. Therefore, Government of India (GOI) started reform programs to reduce the size and expenditure of the Pubic sectors, and restructuring the PSEs.  In 1991 GOI initiated a radical economic reform to increase the private sectors participation and the efficiency of public sector investment. Therefore, the management of various stakeholders become crucial for the success or failure of the disinvestment policies.

This paper investigates the disinvestment in National Aluminium Company Limited (2002-03 and 2005-06), a fully owned government of India enterprise through case method, based on empirical data. The purpose of the paper is to understand what can be the set of linkages among actors, ideas, actions, and desirable outcomes, agreed upon by stakeholders to determine the effectiveness of the reform. The insight from the case is combined with the insight from the literature and other materials. Findings, managerial implications, and recommendations are discussed.

Keywords: Disinvestment, NALCO, Power, Reforms

Management Style of Chinese Business Owners in the Chiang Rai Province of Thailand

Wednesday, April 1st, 2009

by John Walsh and Sittichai Anatarangsi

ABSTRACT

New challenges face Thailand’s economy as it exits the factory age and struggles towards higher value-added economic activities. One important component of new economic development will be encouraging more foreign investment, particularly in the provinces of the country away from Bangkok. China is becoming an increasingly important investment and trade partner for Thailand and the creation of an industrial estate in the northern province of Chiang Rai is in part intended to encourage additional Chinese investment in the country. However, providing space alone is insufficient to understand the needs of investors, including their current and future demand for skilled labour. This paper reports on a program of qualitative research featuring in depth interviews of Chinese business-owners and relevant government officials and others aimed at understanding the style and nature of management among Chinese business owners and, hence, to make preparations for future labour market requirements.

Keywords : Chinese business-owners, Thailand, border regions, management style, labour markets