Female directors in the boardroom and intellectual capital performance:Does the“critical mass”matter?

This research aims to investigate the influence of female directors on Intellectual Capital Performance(ICP)using a sample of manufacturing-listed companies in China.Our study investigates the link between having two or more female directors and the Modified Value-Added Intellectual Coefficient(MVAIC)methodology,employing the critical mass theory from 2004–2017.We find that having a critical mass of female directors(three or more)shows a significant positive impact on MVAIC and its components,including human capital efficiency,structural capital efficiency,relational capital efficiency,and physical capital efficiency,with physical capital being the critical driver.Our study reveals that the critical mass participation of female directors substantially influences the IC efficiency of privately owned companies compared to state-owned companies.Moreover,the number of female directors also affects the IC performance of manufacturing companies in multiple regions.Our findings support the validity of group classification identified by Kanter and Critical Mass Theory.To the best of our knowledge,this is one of the few pieces of research that studies the role of female board directors in IC performance and Chinese manufacturing firms using MVAIC as an IC measure.

Identification of the Optimum Locations of Power System Stabilizers in a Multimachine Power System Using Second Order Eigenvalue Sensitivity Analysis

This research paper deals with the identification of the best location of the Power System Stabilizers (PSS) and also the tuning of PSS parameters in order to improve the overall dynamic stability of multi machine power systems. The location of PSS is determined by identifying the critical modes and their corresponding first and second order eigenvalue sensitivities. In this formulation, sensitivity analysis of a particular mode can be performed with only its eigenvalues and their left and right eigenvectors. The simplicity and efficiency of this approach sharply contrast to the complexity of the traditional approach, where all eigenvalues and eigenvectors are required at the same time. The effectiveness of this method in selecting the optimum location for placement of PSSs is compared with the participation factor method. The proposed sensitivity theory used to identify the best PSS location in a five machine, eight bus El-Metwally and Malik System to increase the damping of both local and inter area modes for various operating conditions.

Strategic Digital Transformation of State-owned Enterprises:Mission Embedding and Mode Selection-A Case Study Based on the Typical Digital Transformation of Three State-owned Enterprises

China’s state-owned enterprises(SOEs)are facing an embedded integration of new functional mission,new classification reform and new digital development.These new tasks require SOEs to embrace digital strategic transformation and innovation for high-quality fulfillment of their national mission.Studying their digital transformation practices,this paper systematically explores the mechanism and path of embedding national mission into SOE digital transformation,and the mode selection of SOE digital transformation under different mission guidance.The findings are:(1)The SOE functional mission focusing on economic development,strategic support and public services in the new era is undertaken by for-profit,strategic and public functional SOEs;(2)the foreign circulation path based on the positioning mechanism-mapping mechanism and the internal consumption connection path for the state capital strategic positioning constitute a double twoway mechanism of embedding the national mission to the SOE digital strategic transformation,leading SOEs to build market-oriented,capacity-oriented and public-oriented digital transformation modes;(3)the three types of reform modes have respectively produced the action mechanism featuring agile strengthening,toughness strengthening and adaptability strengthening,which support the SOE classification performance.This paper attempts to make up for the research gap such as the lack of integration of the SOE digital strategic transformation mode by constructing the theoretical mode of SOE digital strategic transformation under the guidance of national mission,and reveals the intermediary mechanism of digital strategic transformation to support SOEs for fulfilling their functional missions.

The Reforming Logic of State-owned Enterprise Corporate Governance:Proceeding from National Governance to Corporate Governance

The top-level design of national governance plays a leading role in reforming the corporate governance of state-owned enterprises(SOEs)at the micro level.Following the overall objectives of comprehensively deepening reforms,this paper argues that the objective of SOEs corporate governance reform at this stage should be to improve and develop the SOEs corporate governance system with Chinese characteristics and modernize SOEs corporate governance system and governance capacity.To achieve this ambitious objective,this paper considers the theory of SOEs corporate governance with Chinese characteristics,and then explores the concrete manifestation and implementation pathway to the modernization of SOEs corporate governance system and governance capacity.This paper thus enriches the theory of corporate governance and provides insights into the newera SOEs corporate governance reform.

Board faultlines and the value of cash holdings:Evidence from Chinese listed companies

Faultlines can affect a board of director’s effectiveness in supervising senior managers,which in turn affects the value of a company’s cash holdings.Based on sample data from Chinese A-share listed companies from 2004 to 2016,we examine the relationship between board faultlines and the value of cash holdings.The empirical results indicate that board faultlines have a significant inhibitory effect on cash holding value.This inhibitory effect is stronger for board faultlines resulting from deep-level attributes.Furthermore,the inhibitory effect of board faultlines is stronger in state-owned enterprises(SOEs)than in non-SOEs.As an important governance mechanism,management shareholdings can reduce agency costs and mitigate the negative impact of board fissures on cash holdings.Overall,we enrich the literature on the economic consequences of board faultlines and their influence on cash holding value.We also offer companies practical suggestions for improving the supervisory mechanism of their board of directors.

Liquidity Shock,Credit Constraint and the Development of Private vs.State-Owned Enterprises

Based on firm level data for the period of 1998-2007,this paper attempts to explain the growth differences between private enterprises and state-owned enterprises(SOEs)in China,in the context of liquidity shocks,and institutional and financial environments.It is found that(1)when liquidity tightens,the private enterprises face stricter credit constraints than SOEs,which restricts the development of private enterprise;(2)when liquidity becomes abundant,private enterprises face fewer financial limitations and grow much faster than SOEs;(3)the effect of liquidity shocks on the growth rate gap between private enterprises and SOEs has weakened during the period 2002-2007.These findings reveal that the credit discrimination against private enterprises can be mitigated by improving institutional and financial environments,which weaken the effects of liquidity shocks on firm growth.

Building State-owned Assets Supervision System and Conducting Mixed Ownership Reforms to Reinforce Each Other’s Collaboration

Improving the state-owned assets supervision system(SOASS)can effectively get over the defects of systems and mechanisms and further promote the reform of mixed ownership of state-owned enterprises(SOEs);and the deepening of the reform can advance the change of the SOASS to the supervision on capital.By analyzing the relationship between the SOASS and the reform of mixed ownership of state-owned enterprises,we have found that collaborative promotion of the change of the SOASS to the supervision on capital and promotion of the reform of mixed ownership can do good to ameliorating the corporate management mechanism,improving the market-oriented management mechanism of enterprises and completing the medium-and long-term incentive mechanisms,etc.to enhance business operation efficiency.Due to such prevailing problems as relative dispersion and vagueness of the policies relating to deepening the reform of SOEs,inconsistent progress of the reform of state-owned assets(SOAs)and SOEs,and corporate reform focusing on apprence,improving the SOASS and deepening collaborative development of the reform of mixed ownership of SOEs are hindered by some constraints.To construct and improve the SOASS and the reform of mixed ownership collaboratively,we should make efforts to promote the reform in the following five aspects,namely,placing importance to policy coordination,boosting synchronism of the reform of SOAs and SOEs at different levels and in different areas to coordinate the nationwide reform of SOAs and SOEs,facilitating reform of the mechanism of enterprises of mixed ownership through mixed capital,and promoting the SOASS and stimulating classified monitoring and reform of mixed ownership based on classified reform of SOEs.