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Description
Shareholder Activism is a mechanism by which investors who hold a significant but

non-majority percentage of a company’s stock, exercise their voting rights, participate in

corporate governance and influence operational decisions of target companies. The

purpose is improve corporate governance, increase firm performance and boost share

-holders’ returns. Existing studies of shareholder activism, based

Shareholder Activism is a mechanism by which investors who hold a significant but

non-majority percentage of a company’s stock, exercise their voting rights, participate in

corporate governance and influence operational decisions of target companies. The

purpose is improve corporate governance, increase firm performance and boost share

-holders’ returns. Existing studies of shareholder activism, based largely in mature

capital markets like the US, come to different conclusions regarding its impact on firm

performance.

In this paper, I collect data on shareholder activism events in the China A Share

market between 2006 and 2016. The sample includes 60 companies targeted by 42

activist investors over this period. I find that institutional investors, typically industrial

capital and private funds, playing an increasingly important role in corporate governance

of Chinese listed companies through activism. The disclosure of the holdings of activists

results in large gains in the target firm. I also find subsequent improvements in long

-term operational performance of target firms. Activist investors in China focus on

smaller targets and those characterized by higher agency costs and lower operating

performance. Activists appear to be largely concerned with improvements in business

strategy and M&A activity. Non-hostile behavior is more likely to be related to successful

activism in China. In addition to statistical evidence, I present case studies of the

“BaoWan dispute” and the activist investment of Butterfly Capital in two firms,

“Guonong” and “Xiuqiang”. The case studies highlight the mechanism employed by these

firms to influence performance.

I conclude with policy recommendations and direction for further research.
ContributorsXie, Fenghua (Author) / Wahal, Sunil (Thesis advisor) / Yan, Hong (Thesis advisor) / Lee, Peggy (Committee member) / Arizona State University (Publisher)
Created2017
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Description
With the ongoing development of China's financial market, the investment choices for investors are gradually enriched. Exploring asset allocation for different economic cycle stages can help investors achieve higher returns from the economic cycle rotation, and at the same time, effectively diversify the investment risks and improve the stability of

With the ongoing development of China's financial market, the investment choices for investors are gradually enriched. Exploring asset allocation for different economic cycle stages can help investors achieve higher returns from the economic cycle rotation, and at the same time, effectively diversify the investment risks and improve the stability of investment returns. In this paper, we systematically sort out a series of studies on asset allocation and economic cycle theory, and build an economic cycle rotation investment strategy applicable to China's economic environment and changes in China's capital market.Based on China's macroeconomic data and investment asset classes, this paper optimizes the division of economic cycle stages, integrates the economic cycle rotation strategy and risk parity strategy, and incorporates liquidity elements to construct an asset allocation strategy. Specific findings are as follows: (1) this paper uses the "slope" and "threshold" of the year-on-year change of industrial value added to divide the economic output stage, which overcomes the drawbacks of relying on economic cycle indicators that cause frequent changes in cycle stages; (2) the investment strategy developed in the paper is able to obtain considerable investment returns, reduces investment risks, and achieves retracement control. ii The findings of this paper enrich and expand the research on economic cycle theory and asset allocation theory to a certain extent, and also provide some inspiration for the practice of asset allocation.
ContributorsZhao, Guomin (Author) / Huang, Xiao-Chuan (Thesis advisor) / Yan, Hong (Thesis advisor) / Liang, Bin (Committee member) / Arizona State University (Publisher)
Created2023
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Description
The pharmaceutical industry plays an important role in Chinese economic development. How to propel the innovation and growth of the pharmaceutical industry with capital market tools becomes an important question. With the increasing layout of venture capital (VC) in the pharmaceutical industry, the impact of VC participation on the innovation

The pharmaceutical industry plays an important role in Chinese economic development. How to propel the innovation and growth of the pharmaceutical industry with capital market tools becomes an important question. With the increasing layout of venture capital (VC) in the pharmaceutical industry, the impact of VC participation on the innovation and growth of pharmaceutical enterprises should be carefully studied. For investment purposes, CVCs, which are established by industrial corporations, mainly focus on new technologies and modes in the relevant industrial chain of their parent companies, and try to establish strategic synergy through their equity investment. IVCs have no specific industry restrictions, and their purpose is to search for and identify innovative enterprises with high growth potentials, and to harvest financial gains by investing in them.In order to explore these issues, this paper collects and analyzes data from a sample of Chinese A-share listed pharmaceutical companies from 2015 to 2022, tests the impact of VCs on the innovation inputs, innovation outputs, and growth performance of this sample of companies, and examines the differences between the impacts of IVCs and CVCs on the relevant performance. It is found that VC investment has a significant positive impact on pharmaceutical firms' innovation input, innovation output, and firm growth. In particular, IVCs have a significant positive effect on innovation input, growth performance, and an insignificant effect on innovation output of pharmaceutical firms. CVCs, on the other hand, have a significant positive effect on innovation input, innovation output, and growth performance of pharmaceutical firms. In addition, the interaction between IVC and CVC can further enhance the innovation input level and growth performance level of pharmaceutical enterprises. This paper uncovers the differences in the impact of IVCs and CVCs on the innovation input, innovation output, and growth performance of pharmaceutical enterprises, expands the research on venture capital, enriches the driving mechanism of pharmaceutical enterprises' high-quality growth and innovation capability in the Chinese context. This paper also provides some insights into how pharmaceutical enterprises select VCs and how VCs can empower pharmaceutical enterprises in practice.
ContributorsZhang, Pei (Author) / Zhu, David (Thesis advisor) / Yan, Hong (Thesis advisor) / Wu, Fei (Committee member) / Arizona State University (Publisher)
Created2023
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Description
This study aims to explore the impact of employee incentives on innovation in the Chinese inductive manufacturing industry. Using a sample of publicly listed inductive manufacturing companies in China, we construct a panel dataset spanning from 1994 to 2022 and employ a multiple regression model for empirical analysis. Our findings

This study aims to explore the impact of employee incentives on innovation in the Chinese inductive manufacturing industry. Using a sample of publicly listed inductive manufacturing companies in China, we construct a panel dataset spanning from 1994 to 2022 and employ a multiple regression model for empirical analysis. Our findings reveal that employee incentive programs have a significant positive effect on the performance of inductive companies in terms of inductive reliability experiments, and the number of patent applications, granted patents, and patent citations over the next two years. Particularly, the positive relationship between employee incentives and innovation is more pronounced in companies with higher ownership concentration. This study provides empirical evidence supporting the crucial role of employee incentives in facilitating corporate innovation in Chinese inductive manufacturing firms. Furthermore, the results provide valuable insights for firms in formulating stock ownership structures and employee incentive plans, as well as policy implications for developing China's high-end manufacturing industries.
ContributorsZhang, Jieping (Author) / Huang, Xiaochuan (Thesis advisor) / Zhang, Harold (Thesis advisor) / Yan, Hong (Committee member) / Arizona State University (Publisher)
Created2023