Thesis (Ph. D.)--Hong Kong University of Science and Technology, 2003. / Includes bibliographical references (leaves 65-75). Also available in electronic version. Access restricted to campus users.

Thesis (Ph. D.)--Hong Kong University of Science and Technology, 2003. / Includes bibliographical references. Also available in electronic version. Access restricted to campus users.

 Based on the institution-based view, this thesis investigates the effects of subnational institutional environments within a host country on foreign direct investment decisionsand the performance of foreign affiliates. Subnational institutional environments refer to the rules of the game of a society in a subnational region, shaping the manners of individual and organizational activities in the region. I focus on two aspects ofsubnational institutional environments, the level of subnational institutional development and legitimating actors’ cognition of wholly owned foreign subsidiaries in a subnational region, and then develop three studies examining the influences of subnational institutional environments on the entry mode choices of multinational corporations (MNCs), the performance of foreign affiliates, and the subsequent expansions of foreign affiliates. The first study proposes that the levels of subnational economic, political and social institutional development have positive effects on MNCs to take wholly owned subsidiaries (WOSs) at the time of entry, while the high level of acceptance in legitimating actors’ cognition of wholly owned foreign subsidiaries also encourages MNCs to choose WOSs as the entry modes. The influences of the two aspects of subnational institutional environments on the entry mode choices of MNCs vary in degree. The second study examines the independent and relative influences of the levels of subnational economic, political and social institutional development on the level of and variation in foreign affiliate performance. The third study hypothesizes that the subsequent expansions of foreign affiliates within a subnational region are contingent onboth the levels of subnational economic, political and social institutional development and the affiliates’ relative performance to their aspiration levels. The poor performance feedback stimulates a foreign affiliate to take advantage of high levels of subnational political and social institutional development for changing the current situation via expanding the operational size within a subnational region. Drawing from the foreign-invested firms positing in different subnational regions of a large institutional transition economy, China, I test hypothesized relationships based on a measurement of subnational institutional development that captures economic, political and social institutional conditions of subnational regions within the country. This thesis provides implications for both theoretical development and management practices. / published_or_final_version / Business / Doctoral / Doctor of Philosophy

The enactment of the 2006 Enterprise Bankruptcy Law of the PRC marked a new stage in China’s bankruptcy regime by the inclusion of a new reorganization system. The first 5 years of the implementation of the law and further scholarly research, however, have exposed the problems that underlie it, especially those concerning the reorganization of listed companies. The pressing need to address these problems calls for a better understanding of the goals of reorganization. This is because it is by applying the criterion of what best serves the desired reorganization goals that distinguishes an optimal from a less-than-optimal reorganization law and sense from nonsense in its implementation. Thus far, however, no scholar has carried out systemic research of China’s reorganization goals. This thesis, set out in two parts, attempts to fill this gap in the literature for both the dynamics of reorganization legislation and the effectiveness of reorganization implementation in China. Employing the methods of theoretical analysis, economic analysis of law, case analysis and comparative study, the first part of this thesis argues that preserving going-concern surplus and fair distribution are the two fundamental goals of reorganization in China. Although protecting community interest is important, it should be considered only an incidental goal of reorganization. The second part of this thesis examines how the most important aspects of the current reorganization system under the EBL can be improved so as to better achieve the two fundamental goals in reality. As to the goal of preserving going-concern surplus, it discusses the early rescue, preservation and sale of the viable parts of the business in a distressed enterprise. As to the goal of fair distribution, it analyzes both the distributional boundaries and rules of reorganization, with a focus on the absolute priority rule. How to balance the values underlying the two fundamental goals of reorganization and the practical impediments to the implementation of the reorganization law are then discussed. Both a sound grasp of the reorganization goals under the EBL and a deep understanding of why and how specific reorganization mechanisms and provisions exist to serve these goals are needed. Only with such understanding, together with a grasp of the relationships between different fundamental goals and different mechanisms and provisions, can the efforts aiming to improve China’s reorganization system achieve the desired level of effectiveness as a whole. / published_or_final_version / Law / Master / Doctor of Legal Studies

Accelerated bookbuilding method, a streamlined equity offering process, shortens the period for underwriters to exert marketing effort and perform due diligence in seasoned equity offerings. This leads to reduced efforts in minimizing information asymmetry between the issuer, underwriter and investors. My results show that financial issuers have a higher tendency to accelerate the SEO process after controlling for other firm-level offering characteristics. I hypothesize that financial issuers by their nature enjoy less information asymmetry and greater financial expertise, thus they derive only smaller benefit from costly bookbuilding process. Using a sample of financial and non-financial SEOs, I test the equity offering agency model by examining issuers’ decision to accelerate and the accompanying floatation costs. My tests show that only financial issuers can save costs in accelerated SEOs, while non-financial issuers incur higher flotation costs when shortening the bookbuilding process. Further evidence on accelerated SEO post-issue long-run performance shows that financial issuers are better at timing their equity issuance compared with their size and book-to-market matched non-financial counterparts. My results are consistent with Baron’s (1982) agency model in equity offering and Myers and Majluf’s (1984) information asymmetry model of the decision to issue security. / published_or_final_version / Economics and Finance / Doctoral / Doctor of Philosophy

abstract / Economics and Finance / Doctoral / Doctor of Philosophy

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