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Many academic studies in international business empirically test the determinants of Chinese outward (O)FDI. A weakness with these studies is the limited critical evaluation given to the way in which Chinese OFDI data is collected and used. Chinese multinational enterprises (C)MNEs frequently establish special purpose entities in tax havens to transit FDI via intermediary jurisdictions. The purpose of this paper is to develop an alternative approach for measuring CMNE OFDI and subsequently explore how the results of previous studies may have been confounded use of tax havens by MNEs. The authors address the latter question by replicating widely cited quantitative studies.

Replication approach.

Through the replication of several studies, this paper finds high levels of discrepancies in general sign and significance between global ultimate ownership modeling results and those using officially recorded FDI data. More specifically, the main areas impacted by using official data rather than data which accounts for the use of tax havens are cultural proximity, geographic distance and natural resource seeking.

This paper looks at studies, which use official FDI data to understand CMNE behavior. It is important to note, however, that there are many hundreds, if not thousands, of studies that use other national-level FDI data to draw similar types of inferences about MNE activity. In this sense, the authors’ critical evaluation of CMNE work holds a much broader and, arguably, more important question: How reliable, in general, are studies, which use officially recorded FDI data? The results from this paper have already caused reflection on the impact of tax haven use on official FDI collection organizations, such as the OECD.

The social implications of companies using tax havens to route FDI is immense. The use of tax havens not only aids in tax minimization for companies, but also obscures the true providence and identity of companies. This is problematic in a society, which increasingly desires to understand where, how and by whom a product or service was created prior to consumption.

This paper argues that the tendency for Chinese MNEs to establish offshore holding companies in tax havens has given rise to significant biases in official FDI statistics. Through the use of global ultimate ownership data, the authors have put forward an alternate approach to measure genuine CMNEs’ OFDI activity, one which confronts and deals with their pervasive engagement with tax havens. Through the replication of several Chinese OFDI location choice studies, it was possible to understand how methodological issues stemming from the use of official FDI data may influence prior econometric results. In doing so, the authors hope to have sparked a debate which may lead to a re-evaluation of earlier received wisdom regarding Chinese MNE investment strategy and behaviors. This in turn should foster improved theorizing regarding the Chinese MNE and its outward investment activities.

The purpose of this study is to test the hypothesis that real estate ownership contributes to life satisfaction in transition countries.

Life in Transition survey data are used to model reported life satisfaction using ordinary least squares, ordered probit, generalized ordered logit and bivariate probit models. The hypothesis tested is whether real estate ownership is associated with greater reported life satisfaction.

Empirical results from the variety of empirical models estimated strongly support the hypothesis that real estate ownership is associated with greater reported life satisfaction in transition countries.

Analysis is limited because life satisfaction is self-reported and specifically for residents of transition countries.

Results confirm that ownership of a home, second home or land parcel is associated with greater life satisfaction.

Real estate ownership can be an effective means to improve life satisfaction, especially in societies needing such improvements.

This is the first study of the link between real estate ownership and life satisfaction specifically in transition countries, and using a robust set of empirical models to address issues of ordinal dependent variables, varying coefficient estimates across dependent variable response categories, endogeneity and causality.

In the current chapter, we examine people's perceptions of their place in hierarchies. We explore the complexity of these self-perceptions and show how they are susceptible to inaccuracy and bias. We examine how such inaccuracies, however, can lead to negative social consequences: Overestimating one's place can lead to collective punishment by other group members, and underestimating one's place can lead to underutilizing levers of influence, and ultimately, to losing one's social standing.

Cities are host to many of the world’s knowledge intensive research and innovation clusters. As such, they are likely to be attractive locations for emerging market multinational enterprises (MNEs) seeking to engage in knowledge seeking “springboard” type firm-level catch-up strategies. The purpose of this study is to therefore explore whether city-based research-intensive clusters containing deep pools of location bounded (i.e. “sticky”) knowledge are a stronger driver for greenfield research and development (R&D)-related FDI projects for Chinese MNEs than they are for developed market MNEs.

The authors use logistic modelling on 97,163 worldwide greenfield FDI projects to explore the relative likelihoods of Chinese MNEs engaging in R&D-related greenfield (i.e. “strategic asset seeking”) FDI projects as well as how city type (global or research-intensive cluster city) moderates this relationship for Chinese MNEs.

The authors find that Chinese MNEs are more likely to engage in overseas R&D FDI projects (compared with other types of project) than DMNEs and that research-intensive city clusters hold a stronger attraction for Chinese MNEs than developed market MNEs.

The authors discuss how the research contributes to the debate on emerging market MNE catch-up theory, as well as that on sub-national city location choice, by highlighting the growing importance of sub-national geography to understanding strategic asset seeking related greenfield FDI.

Sub-national city location choice is an important driver of strategic asset seeking FDI for Chinese MNEs, one that both national and local city level policymakers should pay attention to.

Chinese FDI via aggressive mergers and acquisitions to acquire key technologies has been restricted in recent years. Policymakers must consider whether they may also wish to restrict Chinese greenfield FDI in R&D-related projects, which now exhibit a pronounced upward trend.

The authors highlight the growing importance of sub-national geography to understanding strategic asset seeking related greenfield FDI in Chinese MNEs (and how it plays, more generally, a central role in their strategies).

Analyze how peer effects and social influences affect attitudes and responses to corruption in tax systems, identifying factors that improve tax morale.

Life in Transition Survey (LITS III, 2016) data are analyzed using ordered probit models of corrupt tax officials, Heckman-style selection models of the extent of corruption, probit models of reasons given for not reporting corruption and ordered probit models of the frequency of informal payments to tax officials.

Peer effects and social influences significantly affect perceptions of and responses to corruption. Tax morale is supported in communities where people trust one another, where there is greater respect for the law and where people can achieve greater life satisfaction.

Results are specific to transition countries represented in the data.

Findings can help improve tax morale and stabilize fiscal systems in transition countries.

Enhanced tax morale can be facilitated by building inclusive, respectful and transparent institutions.

This study uses the latest LITS III data with a focus on peer effects and social influences, with improved empirical strategies.

We offer a new perspective on group affective diversity by introducing the construct of mixed group mood, denoting co-occurring positive and negative mood states between different members of a group. Mixed group mood is characterized by four facets, namely members’ distribution between two positive and negative subgroups, subgroups’ average mood intensity, subgroups’ mood intensity heterogeneity, and individual members’ mood ambivalence. Building on information/decision-making and social categorization/similarity–attraction perspectives, we explore the performance consequences of mixed group mood along these four facets and we discuss implications and directions for future research.

The quality of strategic decisions made at the helm of corporations matters a great deal. Predominantly, research on strategic decision-making has focused on CEOs as if they decide alone. Yet in reality, even the most powerful CEO makes strategic decisions together with an executive board. This chapter offers a theoretical explanation of strategic board decision-making through the emotional contagion between the CEO and board members.

We used both previous research and qualitative material – two case studies and interviews with several dozen CEOs of large corporations as well as the board members of one of them – to build our theoretical model.

Our inBoard Emotional Contagion Model (inBECM) specifies the following individual–collective emotional dynamics: After a strategic affective event has triggered an affective discussion within the boardroom, the emotionally intelligent CEO communicates verbally in order to – through an emotional contagion – homogenize board members’ emotional states leading to shared sense-making of the event and – potentially – to improved decision-making.

Suggestions are made for the inBECM contribution to emotion theory. Implications are stated for the key role of emotion in improving board decision-making and strategizing.

New Zealand reintroduced titular honours (i.e. knighthoods and damehoods) in 2009. We document the prevalence of knights and dames on the board of directors.

We use a probit regression to investigate what firm characteristics are significantly associated with having a knight or dame on the board of directors.

We find 19 of 112 companies have a knight or dame on the board. These companies are bigger and have larger and more independent boards than other companies. We also find a knight or dame is more likely to serve in companies that have higher dividend yields.

The generalisability of our results is limited by the small number of knights and dames on the boards of listed companies and our archival regression approach. Although we document an association, we cannot prove causation.

We show that directors with greater and easily visible reputational capital are more likely to supply their services to companies that mitigate risks to their reputation and protect minority shareholder interests.

The academic literature within social psychology focuses on describing what leaders and groups do wrong rather than what they do right. We refer to this as the “negative psychology” of leaders and groups. This chapter reviews the negative and positive research perspectives on leadership and groups. We propose that scholarly research makes more references to the shortcomings of leaders and groups rather than their successes. We conjecture that the pressure by the academic community to produce compelling counterintuitive research findings fuels the tendency to concentrate on failures. In contrast, we suggest that popular articles and books more often focus on the positive achievement of leaders and groups because their audience, namely managers, are more interested in learning how to achieve positive results than to avoid negative outcomes. Finally, we suggest that scholarly research on the psychology of leaders and groups could benefit from understanding how to achieve and maintain positive outcomes, whereas popular press may better prevent organizational failure and ruin by understanding managers’ blunders and faults.