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Article: An empirical analysis of contracting by Chinese firms

TitleAn empirical analysis of contracting by Chinese firms
Authors
KeywordsChinese Firms
Formal Contracts
Location
Relational Contracts
Issue Date2010
PublisherElsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/chieco
Citation
China Economic Review, 2010, v. 21 n. 3, p. 423-431 How to Cite?
AbstractWhy do firms use formal contracts or relational contracts with their business partners? The paper uses survey data based on a large number of Chinese firms to uncover some important factors for why and when formal contracts or relational contracts are used. This study identifies geographical location as an important factor in affecting Chinese firms' contracting decisions. We find that a firm is more likely to use formal contracts with its clients and suppliers if they are located in a city different from the firm's main business location. We also find that larger (smaller) firms tend to adopt formal (relational) contracts. However, while the number of clients has a negative impact on a firm's adoption of formal contracts with its clients, the number of suppliers has a positive impact on its adoption of formal contracts with the suppliers. © 2010 Elsevier Inc.
Persistent Identifierhttp://hdl.handle.net/10722/177775
ISSN
2015 Impact Factor: 1.116
2015 SCImago Journal Rankings: 0.997
ISI Accession Number ID
References

 

DC FieldValueLanguage
dc.contributor.authorHu, Yen_US
dc.contributor.authorQiu, LDen_US
dc.date.accessioned2012-12-19T09:39:52Z-
dc.date.available2012-12-19T09:39:52Z-
dc.date.issued2010en_US
dc.identifier.citationChina Economic Review, 2010, v. 21 n. 3, p. 423-431en_US
dc.identifier.issn1043-951Xen_US
dc.identifier.urihttp://hdl.handle.net/10722/177775-
dc.description.abstractWhy do firms use formal contracts or relational contracts with their business partners? The paper uses survey data based on a large number of Chinese firms to uncover some important factors for why and when formal contracts or relational contracts are used. This study identifies geographical location as an important factor in affecting Chinese firms' contracting decisions. We find that a firm is more likely to use formal contracts with its clients and suppliers if they are located in a city different from the firm's main business location. We also find that larger (smaller) firms tend to adopt formal (relational) contracts. However, while the number of clients has a negative impact on a firm's adoption of formal contracts with its clients, the number of suppliers has a positive impact on its adoption of formal contracts with the suppliers. © 2010 Elsevier Inc.en_US
dc.languageengen_US
dc.publisherElsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/chiecoen_US
dc.relation.ispartofChina Economic Reviewen_US
dc.subjectChinese Firmsen_US
dc.subjectFormal Contractsen_US
dc.subjectLocationen_US
dc.subjectRelational Contractsen_US
dc.titleAn empirical analysis of contracting by Chinese firmsen_US
dc.typeArticleen_US
dc.identifier.emailQiu, LD: larryqiu@hku.hken_US
dc.identifier.authorityQiu, LD=rp01093en_US
dc.description.naturelink_to_subscribed_fulltexten_US
dc.identifier.doi10.1016/j.chieco.2010.03.003en_US
dc.identifier.scopuseid_2-s2.0-77953139297en_US
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-77953139297&selection=ref&src=s&origin=recordpageen_US
dc.identifier.volume21en_US
dc.identifier.issue3en_US
dc.identifier.spage423en_US
dc.identifier.epage431en_US
dc.identifier.isiWOS:000278839900004-
dc.publisher.placeNetherlandsen_US
dc.identifier.scopusauthoridHu, Y=7407119615en_US
dc.identifier.scopusauthoridQiu, LD=7201538008en_US
dc.identifier.citeulike6958229-

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