The Relationship between Institutional Environment and Happiness of China’s Private Business Entrepreneurs
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| Title | The Relationship between Institutional Environment and Happiness of China’s Private Business Entrepreneurs
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| Author | Xin Yu, Xu Liping and Li Xinchun |
| Organization | Center for Accounting, Finance and Institutions and Business School, Sun Yat-sen University;Business School, Sun Yat-sen University |
| Email | mnsxy@mail.sysu.edu.cn,xuliping@mail.sysu.edu.cn,mnslxc@mail.sysu.edu.cn |
| Key Words | Private Business Entrepreneur; Happiness; Institutional Environment; Determinants |
| Abstract | This paper analyzes the relationship between institutional environment and happiness of China’s private business entrepreneurs. We find that the better the institutional environment, the happier the entrepreneurs. However, the positive effect of institutional environment on happiness differs depending on the extent of happiness. The effect is less obvious for the happy group, but more significant for the unhappy (painful) group. Therefore, a fair, efficient institutional environment is not only icing on the cake (enhance the happiness of happy entrepreneurs), but also fuel in a snowy whether (mitigate pain of unhappy entrepreneurs). Further, we also find that, (1) happiness index is positively related with industry prospect, firm size, firm profitability, and manager’s business education background and compensation; and negatively related with debt level, firm’s diversification plan, and firm age; (2) to some extent, the above effects also differ between happy and painful groups; (3) there is a positive relationship between shareholding and happiness in happy group, but a negative relationship between them in painful group, which means that shareholding will enhance the variability of happiness. |
| Serial Number | WP197 |
| Time | 2012-02-15 |
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