Product Diversification and Firm Performance in China: A Perspective of Sub-National Institutions

Yanghong Hu; Ji Li; Lan Xu; Ying Zhang; Wanxing Jiang; Lan Liang

doi:10.5465/AMBPP.2018.13615abstract

Product Diversification and Firm Performance in China: A Perspective of Sub-National Institutions

Yanghong Hu, Ji Li, Lan Xu, Ying Zhang, Wanxing Jiang, Lan Liang

Research output: Chapter in book/report/conference proceeding › Conference proceeding › peer-review

Abstract

Research related to the effect of product diversification on firm performance (PD- P, hereafter) in China has not yet paid attention to the heterogeneity of sub- national institutions in various regions in China. Specifically, this paper examines PD-P in China from a perspective of sub-national institutions. It further investigates whether state-owned enterprises are better than non- state-owned enterprises at taking advantage of sub-national institutional development to improve firm performance that product diversification leads to. This paper uses a sample of 37,856 observations of 124 insurance firms in 31 provinces of China over the period from 2005 to 2014. It finds that in China, product diversification of a firm in a region has a positive effect on firm performance in that region, but this positive effect holds true only in regions with a high instead of low level of sub- national institutional development. Furthermore, the positive moderating effect of sub-national institutional development on PD-P is stronger for firms with a high instead of low level of state ownership.

Original language	English
Title of host publication	Academy of Management Proceedings 2018
Editors	Sonia Taneja
Publisher	Academy of Management
DOIs	https://doi.org/10.5465/AMBPP.2018.13615abstract
Publication status	Published - 1 Aug 2018
Event	78th Annual Meeting of the Academy of Management, AOM 2018: Improving Lives - Chicago, United States Duration: 10 Aug 2018 → 14 Aug 2018 https://aom.org/events/annual-meeting/past-annual-meetings/2018-improving-lives (Conference website) https://journals.aom.org/toc/amproc/2018/1 (Conference proceedings)

Publication series

Name	Academy of Management Proceedings
Publisher	Academy of Management
ISSN (Print)	0065-0668
ISSN (Electronic)	2151-6561

Conference

Conference	78th Annual Meeting of the Academy of Management, AOM 2018
Country/Territory	United States
City	Chicago
Period	10/08/18 → 14/08/18
Internet address	https://aom.org/events/annual-meeting/past-annual-meetings/2018-improving-lives (Conference website) https://journals.aom.org/toc/amproc/2018/1 (Conference proceedings)

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10.5465/AMBPP.2018.13615abstract

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title = "Product Diversification and Firm Performance in China: A Perspective of Sub-National Institutions",

abstract = "Research related to the effect of product diversification on firm performance (PD- P, hereafter) in China has not yet paid attention to the heterogeneity of sub- national institutions in various regions in China. Specifically, this paper examines PD-P in China from a perspective of sub-national institutions. It further investigates whether state-owned enterprises are better than non- state-owned enterprises at taking advantage of sub-national institutional development to improve firm performance that product diversification leads to. This paper uses a sample of 37,856 observations of 124 insurance firms in 31 provinces of China over the period from 2005 to 2014. It finds that in China, product diversification of a firm in a region has a positive effect on firm performance in that region, but this positive effect holds true only in regions with a high instead of low level of sub- national institutional development. Furthermore, the positive moderating effect of sub-national institutional development on PD-P is stronger for firms with a high instead of low level of state ownership.",

author = "Yanghong Hu and Ji Li and Lan Xu and Ying Zhang and Wanxing Jiang and Lan Liang",

note = "Publisher copyright: Copyright of Academy of Management Proceedings is the property of Academy of Management and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. The Academy of Management does not maintain the full text version of papers presented at the Academy's meetings. Please contact the author(s) directly to obtain access to the full text content.; 78th Annual Meeting of the Academy of Management, AOM 2018 : Improving Lives ; Conference date: 10-08-2018 Through 14-08-2018",

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doi = "10.5465/AMBPP.2018.13615abstract",

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Hu, Y, Li, J, Xu, L, Zhang, Y, Jiang, W & Liang, L 2018, Product Diversification and Firm Performance in China: A Perspective of Sub-National Institutions. in S Taneja (ed.), Academy of Management Proceedings 2018. Academy of Management Proceedings, Academy of Management, 78th Annual Meeting of the Academy of Management, AOM 2018, Chicago, United States, 10/08/18. https://doi.org/10.5465/AMBPP.2018.13615abstract

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AU - Hu, Yanghong

AU - Li, Ji

AU - Xu, Lan

AU - Zhang, Ying

AU - Jiang, Wanxing

AU - Liang, Lan

N1 - Publisher copyright: Copyright of Academy of Management Proceedings is the property of Academy of Management and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. The Academy of Management does not maintain the full text version of papers presented at the Academy's meetings. Please contact the author(s) directly to obtain access to the full text content.

PY - 2018/8/1

Y1 - 2018/8/1

N2 - Research related to the effect of product diversification on firm performance (PD- P, hereafter) in China has not yet paid attention to the heterogeneity of sub- national institutions in various regions in China. Specifically, this paper examines PD-P in China from a perspective of sub-national institutions. It further investigates whether state-owned enterprises are better than non- state-owned enterprises at taking advantage of sub-national institutional development to improve firm performance that product diversification leads to. This paper uses a sample of 37,856 observations of 124 insurance firms in 31 provinces of China over the period from 2005 to 2014. It finds that in China, product diversification of a firm in a region has a positive effect on firm performance in that region, but this positive effect holds true only in regions with a high instead of low level of sub- national institutional development. Furthermore, the positive moderating effect of sub-national institutional development on PD-P is stronger for firms with a high instead of low level of state ownership.

AB - Research related to the effect of product diversification on firm performance (PD- P, hereafter) in China has not yet paid attention to the heterogeneity of sub- national institutions in various regions in China. Specifically, this paper examines PD-P in China from a perspective of sub-national institutions. It further investigates whether state-owned enterprises are better than non- state-owned enterprises at taking advantage of sub-national institutional development to improve firm performance that product diversification leads to. This paper uses a sample of 37,856 observations of 124 insurance firms in 31 provinces of China over the period from 2005 to 2014. It finds that in China, product diversification of a firm in a region has a positive effect on firm performance in that region, but this positive effect holds true only in regions with a high instead of low level of sub- national institutional development. Furthermore, the positive moderating effect of sub-national institutional development on PD-P is stronger for firms with a high instead of low level of state ownership.

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Y2 - 10 August 2018 through 14 August 2018

ER -

Product Diversification and Firm Performance in China: A Perspective of Sub-National Institutions

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