American Authoritative Economics Institution Publishes a Cooperation Paper between Cheng Hong and Stanford University

On June 25th, the “This Week's Working Papers” column of the National Bureau of Economic Research (NBER), an authoritative economic institution in the US, published in full text the cooperation research paper between Cheng Hong, professor from the Quality Development Strategy Research Institute of WHU, and three professors from Stanford University.

The title of the paper is “Do CEOs Know Best? Evidence from China”. The three collaborators at Stanford University are: Nicholas Bloom, Mark Duggan, and Professor Li Hongbin.

The paper uses the “China Enterprise-Employee Survey” (CEES) data from the Quality Development Strategy Research Institute for empirical research. The CEES project has tracked 11,366 employees from 1,208 companies in China for 3 years, and the research team has collected the scores of management efficiency from two dimensions of enterprise and employee for the first time, and also observed the cognition level of entrepreneur, middle level and senior managers and frontline employees of the same company.

Research shows that compared with middle and high-level managers and frontline employees, entrepreneurs have a better understanding of the company's development status, and its management perception has stronger correlation with enterprise performance, production and innovation activities. Through the use of CEES data, the research team found that improving the consistency of entrepreneurial and employee management cognition is an important way to improve corporate performance and enhance innovation capabilities.

Once published online, the paper wasintroducedby the Harvard Law School's Corporate Governance and Financial Regulation forum, attractingalot of academic attention.

This paper is a representative result of collaborative research between the Quality Development Strategy Research Institute and the world's top economists. The collaborator Bloom is a well-known economist. He innovatively proposed a standardized measurement scale for enterprise management efficiency, and published more than 20 representative papers in internationally renowned economic journals. Another collaborator, Duggan, is a well-known labor economist who was awarded the ASHEcon Award in 2010 by the American Health Economics Association. Li Hongbin is a world-renowned Chinese economist and an important initiator and partner of the CEES project.

It is reported that NBER was founded in 1920 and is a time-honored and well-known economic research organization in the United States. Its regular work papers focus on global economic development issues and are highly regarded by economic researchers. 

Link to the paper: http://www.nber.org/papers/w24760

(Editor: Chen Lixia)