RT Article
T1 Does ownership matter?: firm ownership and corporate illegality in China
JF Journal of business ethics
VO 168
IS 2
SP 431
OP 445
A1 Gao, Yongqiang
A1 Yang, Haibin
LA English
PB Springer Science + Business Media B. V
YR 2021
UL https://www.ixtheo.de/Record/1745705627
AB This study explores whether or not a firm’s ownership status, as state-owned enterprise (SOE) or private-owned enterprise (POE), will influence its likelihood of engaging in illegality in China. We build our arguments on the institution-based view, positing that firms rationally pursue their interests in the distinct institutional context of China. Compared to SOEs, POEs have limited access to institutional resources, the lack of which threatens their development or even survival, forcing them to “break rules” to overcome institutional barriers. We thus suggest that POEs demonstrate a higher propensity to engage in illegal actions than SOEs do. However, if POEs could gain access to more institutional resources, their motivation to engage in illegal actions is likely to decrease. Following this logic, we suggest that political connections and market development will mitigate the likelihood that POEs will engage in illegal actions. We find support for our predictions using evidence from Chinese listed manufacturers. Our research contributes to the literature by revealing the institutional aspects of corporate illegality in transitional economies.
K1 Corporate illegality
K1 Private-owned enterprise
K1 State-owned enterprise
K1 Political connections
K1 Aufsatz in Zeitschrift
DO 10.1007/s10551-019-04264-y