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  1. Green side of informal institutions: Social trust and environmental sustainability.Daxin Sun, Yaxin Zhang & Xiaohua Meng - 2023 - Business Ethics, the Environment and Responsibility 32 (4):1352-1372.
    Informal institutions are found to shape the behaviors of economic organizations within the business world by creating localized social norms and moral commitments. However, the existing literature pays greater attention to the financial consequences of such institutions, and little is known about their environmental impacts, especially in the context of transition economies. By linking institutional theory with environmental strategy literature, in this study, we develop a theoretical framework and empirically test how social trust, one of the dimensions of informal institutions, (...)
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  • The Effect of Human Capital on Stock Price Crash Risk.Yi Si & Chongwu Xia - 2023 - Journal of Business Ethics 187 (3):589-609.
    This paper studies how the human capital embedded in rank-and-file employees affects firms’ stock price crash risk. Employing a unique setting in China where we measure human capital using employee information at the firm level, we show that human capital quality improves firms’ internal information environments, curbs bad-news hoarding and overinvestment, leading to lower stock price crash risk. The findings are robust to instrumental variable regressions. Our study highlights the internal informational role of human capital and sheds light on its (...)
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  • Social Trust and Female Board Representation: Evidence from China.Baoyin Qiu, Haohan Ren, Jingjing Zuo & Bo Cheng - 2023 - Journal of Business Ethics 188 (1):187-204.
    The underrepresentation of females on corporate boards is an important ethical issue that raises serious concerns about gender equality in senior management teams. Relying on a large sample of public firms from the Chinese market, we examine how social trust affects female board representation. We find that female board representation has a positive and significant relation with social trust. The effect is more pronounced in regions with a higher male-to-female sex ratio at birth, lower levels of education, lower GDP per (...)
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  • Cultural Diversity and Corporate Tax Avoidance: Evidence from Chinese Private Enterprises.Guangyong Lei, Wanwan Wang, Junli Yu & Kam C. Chan - 2021 - Journal of Business Ethics 176 (2):357-379.
    We examine the impact of a city’s cultural diversity on a firm’s tax avoidance. Our findings suggest that when a firm is located in a culturally diverse city, it exhibits less TA than a firm located in a less culturally diverse city. The findings are robust to alternative metrics of cultural diversity and TA and after accounting for omitted sample bias and endogeneity. Additional analysis suggests that the negative impact of cultural diversity on a firm’s TA is more salient in (...)
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  • Locality Stereotype, CEO Trustworthiness and Stock Price Crash Risk: Evidence from China.Leilei Gu, Jinyu Liu & Yuchao Peng - 2020 - Journal of Business Ethics 175 (4):773-797.
    Exploring the locality stereotype with respect to CEO’s trustworthiness, we find that firms whose CEOs are from more reputable hometowns have a higher likelihood of stock price crashes, indicating the presence of a CEO “Trust Exploitation” effect, i.e. a high-trust identity does not guarantee managerial ethics; to the contrary, it could tempt CEOs to abuse outsiders’ trust, camouflage their misconducts and conceal adverse information more severely. The effect of CEO’s perceived trustworthiness on tail risk of stock price remains robust when (...)
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