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The effects of newly emergent non–state-controlled Chinese firms adapting an established practice from state-owned organizations: evidence of symbolic compliance from a natural experiment
Liuchuang Li1; Bin Srinidhi2; Zhongbo Yu3; Hao Zhang4
2019
Source PublicationASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS
ABS Journal Level2
ISSN1608-1625
Volume29Issue:5Pages:1376–1393
Abstract

We examine the puzzling observation of newly emergent Chinese non– state-controlled enterprises (NSCEs) adapting the long-established practice from state-controlled organizations of inviting state officials for general nontechnical and nonregulatory visits and then publicizing these visits in the media even though such visits impose significant costs on these firms. This context is unique and allows for a natural experiment in which newly emergent organizations that lack inherent legitimacy and cannot undertake substantial identification resort to symbolic compliance to enhance legitimacy. We show that these visits result in better operating and market performance, and reduce the risk in the visited NSCEs. We interpret this result as providing evidence that symbolic compliance is effective to enhance legitimacy.

KeywordNon–state-controlled Firms Symbolic Compliance Legitimacy Enhancement
DOI10.1080/16081625.2019.1618717
Language英語English
Scopus ID2-s2.0-85138508724
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Document TypeJournal article
CollectionDEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT
Corresponding AuthorHao Zhang
Affiliation1.Department of Accounting, Xian Jiatong University, Xian, China
2.Department of Accounting, University of Texas, Arlington, TX, USA
3.Shenzhen Stock Exchange Research Institute, Shenzhen, China
4.Department of Accounting and Information Management, University of Macau, Macau, China
Corresponding Author AffilicationUniversity of Macau
Recommended Citation
GB/T 7714
Liuchuang Li,Bin Srinidhi,Zhongbo Yu,et al. The effects of newly emergent non–state-controlled Chinese firms adapting an established practice from state-owned organizations: evidence of symbolic compliance from a natural experiment[J]. ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS, 2019, 29(5), 1376–1393.
APA Liuchuang Li., Bin Srinidhi., Zhongbo Yu., & Hao Zhang (2019). The effects of newly emergent non–state-controlled Chinese firms adapting an established practice from state-owned organizations: evidence of symbolic compliance from a natural experiment. ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS, 29(5), 1376–1393.
MLA Liuchuang Li,et al."The effects of newly emergent non–state-controlled Chinese firms adapting an established practice from state-owned organizations: evidence of symbolic compliance from a natural experiment".ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS 29.5(2019):1376–1393.
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