A comparison between North and South business ethics: the concepts of Renzhi and Fazhi in China
The purpose of this study is to compare the ethical standards of business practitioners of Northern provinces of the People’s Republic of China (PRC) who follow the ‘rule by man’ (i.e. the Renzhi system) versus those of southern provinces who follow the ‘rule by law’ (i.e. the Fazhi system). Our Shanghai survey represented the south Chinese sample, and our Shijiazhuang mailing represented our north Chinese sample. We received 95 completed responses for the former and 102 completed responses for the latter. Our results found that the south Chinese practitioners were more likely to be idealistic, possessed virtue epistemic traits and were more sensitive to ethical practices than north Chinese practitioners were.
Abstract Using the Stochastic Frontier Approach (SFA) and Data Envelope Analysis (DEA), this study examines the influence of bank efficiencies on the market assessment of bank holding company (BHC) mergers. The following two questions are addressed: (1) Is the target BHC's frontier efficiency reflected in the bidder BHC's abnormal returns? and (2) Does the difference in frontier efficiency between the bidder and/or target banks relative to their peer institutions influence the acquirer's abnormal returns? In support of the Inefficient Management Hypothesis, the findings indicate that bidder wealth effects do incorporate the target's X-efficiency as well as the difference in bidder/target efficiencies relative to their peer institutions.