Search

This paper takes the establishment of the Green Financial Reform and Innovation Pilot Zone (GFPZ) in 2017 as a natural experiment, adopts the data of a-share industrial listed enterprises in Shanghai and Shenzhen from 2010 to 2020, and utilizes the difference-in-differences (DID) method to carry out empirical tests. The results show that (1) GFPZ policy significantly improves the environmental, social, and governance (ESG) performance of enterprises, and the positive effect is mainly realized by improving the external financing ability and green-technology innovation level of enterprises. (2) There is heterogeneity in the impact of GFPZ policy on the ESG performance of firms with different equity natures and internal control levels. (3) Green finance promotes active corporate social responsibility, and it can further improve environmental governance in the regions where it operates. This paper provides a useful supplement to the comprehensive understanding of green-finance policy effects and ESG impact factors, and it is of great significance in mitigating the negative environmental and social externalities caused by the excessive pursuit of economic benefits by enterprises. [ABSTRACT FROM AUTHOR]

Prior literature finds senior executives can influence auditor decision making. However, few studies have discussed the impact of employee's personal characteristics. Our research aims to fill the above research gaps by examining the impact of employee level education on audit costs. Taking A-share listed companies in Shanghai and Shenzhen from 2006 to 2021 as the research object, this paper examines the impact of employee education on audit fees. It is found that highly educated employees can effectively reduce the audit fees borne by the company, but the implementation of the Labor Protection Law weakens this inhibitory effect. In the case of low marketization level and weak Confucian culture intensity, employee education level has a more significant inhibitory effect on audit fees of listed companies. This study provides a basis for empirical research on the impact of employee attributes on auditor decision making, provides a new research perspective on the impact of labor protection law at the corporate micro level, and enriches the theoretical research on corporate governance rooted in traditional Chinese culture. We contribute to the practice that implications for evaluating the effectiveness of adopting labor protection. [ABSTRACT FROM AUTHOR]

To explore the relationship between air pollution and total factor productivity and new pathways, This paper examines the impact of air pollution on total factor productivity of A-share listed companies in Shanghai and Shenzhen between 2015 and 2019. It investigates this relationship by considering two pathways: investor sentiment and government attention. The findings indicate that air pollution suppresses total factor productivity of firms. However, air pollution stimulates investor sentiment, which in turn increases R&D investment and total factor productivity, reducing to some extent the dampening effect of air pollution on total factor productivity. There exists a notable positive correlation between air quality and government attention, acting as a mediating variable. This implies that air pollution has the potential to capture the attention of governmental entities, leading to the implementation of appropriate measures aimed at managing and mitigating the occurrence of air pollution caused by industrial enterprises.And the relevant governments should formulate a series of policies to meet the different needs of different enterprises. These two approaches have varying impacts depending on the type of enterprises, thus governments should develop laws to cater to the various demands of different types of enterprises. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to investigate the impact of performance feedback (performance expectation surplus, performance expectation deficit) on corporate ESG performance, and this paper also to investigate the role of environmental strategy as a mechanism in the impact of enterprises' performance feedback on corporate ESG performance. Design/Methodology/Approach: The study used data from 3679 companies listed on the Shanghai and Shenzhen stock exchanges for the period 2009–2021 and also measured the intensity of corporate environmental strategies through analysis. Finally, we used a fixed effects model to test the research hypothesis. Findings: This study shows that enterprise performance feedback positively affects corporate ESG performance and that environmental strategy plays a significant mechanistic role in enterprise performance feedback and corporate ESG performance. Overall, performance expectation surplus negatively affects ESG performance, performance expectation deficit positively affects ESG performance, and the mechanism of environmental strategy plays a significant role in performance expectation deficit and ESG performance. Practical implications: The results of this study can help enterprises establish a scientific environmental management system, strengthen the supervision of enterprise environmental management, and have certain reference significance for enterprises to speed up the implementation of environmental protection measures. Originality/Value: This study adds to the literature by describing corporate ESG performance using performance feedback theory and explaining the inherent role of enterprise performance feedback in corporate ESG performance utilizing environmental strategies. [ABSTRACT FROM AUTHOR]

Currently, countries worldwide are embracing digital strategies, enabling enterprises to utilize digital technology, digital supply chains, blockchain, and additional digital measures to increase their competitiveness. This paper analyzed the correlation between the digital transformation of manufacturing export enterprises and their business and export performance, focusing on China's manufacturing export enterprises through empirical analysis. The study investigated the influence of digital transformation on enterprise performance. Using the Resource Based View theory and Trade theory, hypotheses were proposed and regression models were developed to analyze a sample of 1007 enterprises listed on the Shanghai and Shenzhen Stock markets from 2012 to 2019. The study conducted regression analysis, intermediate effect test, robustness test, stage lag, and heterogeneity analysis. The study found that (1) Manufacturing export enterprises listed in the stock market implemented digital transformation, leading to a significant positive impact on their overall performance. (2) Digital transformation led to cost reduction, improved R&D intensity, and enhanced human resources, among other benefits for enterprise performance. (3) According to the fractal analysis, non-state-owned enterprises exhibited more favorable effects on enterprise performance, and the digital transformation of manufacturing export companies in developed regions had a more significant impact on their performance. Finally, the study's empirical results yielded pertinent proposals for digital transformation. [ABSTRACT FROM AUTHOR]

Digital transformation plays a crucial role in improving the quality development of companies in this era of digital economy with ever-changing technologies. This paper empirically investigates the impact of corporate digital transformation on total factor productivity and the mechanism of action, using A-share listed companies in Shanghai and Shenzhen from 2011–2021 as the research sample, and found that the digital transformation of companies significantly improves total factor productivity, with the plausibility of the findings being verified by a series of robustness tests. Based on the heterogeneity study, it is found that such effect is stronger for private companies, non-high-tech companies, and companies with a high degree of industry competition. The mechanism test indicates that digital transformation facilitates total factor productivity through four ways: strengthening company technological innovation, reducing operational costs, increasing resource allocation efficiency, and improving human capital structure. The findings of this paper support a better understanding of the micro effects of digital transformation and provide empirical evidence for policy formulation and adjustment. [ABSTRACT FROM AUTHOR]

With the rapid development of technologies such as cloud computing and big data, various levels of government departments in the country have successively introduced digital subsidy policies to promote enterprises' digital transformation. However, the effectiveness of these policies and their ability to truly achieve policy objectives have become pressing concerns across society. Against this backdrop, this paper employs a moderated mediation effects model to empirically analyze the incentive effects of financial subsidies on the digital transformation of A-share listed manufacturing companies in the Shanghai and Shenzhen stock markets from 2013 to 2022. The research findings indicate a significant promotion effect of financial subsidies on the digital transformation of manufacturing enterprises, especially demonstrating a notable incentive impact on the digital transformation of large enterprises, non-asset-intensive enterprises, technology-intensive enterprises, and non-labor-intensive enterprises. However, the incentive effect on the digital transformation of small and medium-sized enterprises (SMEs), asset-intensive enterprises, non-technology-intensive enterprises, and labor-intensive enterprises is not significant. Notably, the expansion of financial subsidies positively influences the augmentation of R&D investment within manufacturing enterprises, subsequently providing indirect encouragement for their digital transformation. Additionally, the incorporation of the degree of marketization implies its potential to moderate both the direct and indirect impacts of financial subsidies on enterprise digital transformation. This study enriches the research on the mechanism of the role of financial subsidies in digital transformation and provides empirical evidence on how market participation influences the effects of financial subsidies, thereby assisting policymakers in comprehensively understanding the impact of financial subsidy policies on different types of enterprises. [ABSTRACT FROM AUTHOR]

In the process of development, global economies are prioritizing environmental protection and firms are also recognizing the importance of minimizing environmental impact during production along with maximization of profits through green investments. It is vivid that green investments are vital for environmental preservation. So this paper contributes to literature by investigating the role of internal and external factors affecting the decision making of Chinese firms regarding adoption of green investments and impact of green investments on environmental, social, and economic performance of firms. The data is collected from directors/senior managers of the firms. We received 463 valid responses from listed companies with Shenzhen, Beijing, and Shanghai Stock Exchange. The "structural equation modeling" with "maximum likelihood estimation" is employed for empirical analysis. The empirical findings reveal that adaptation to climate change and its mitigation is the most important driver of green investment. Moreover, green investment positively contributes to enhancing the social, economic, and environmental performances of Chinese firms. Based on the findings of the study, green investment should be adopted as a corporate strategy by firms for profit maximization, competitive advantage, and improvement in social well-being without compromising the environment. Policy makers can promote green investment by offering policy instruments such as tax incentives, guaranteed credits, grants, and investor education. Training courses may be offered to raise environmental awareness among firms and the general public. [ABSTRACT FROM AUTHOR]

Scientifically configuring landscape patterns based on their relationship with ground-level ozone concentrations (GOCs) is an effective way to prevent and control ground-level ozone pollution. In this paper, a GOC variation trend prediction model (hybrid model) combining a generalized linear model (GLM) and a logistic regression model (LRM) was established to analyze the spatiotemporal variation patterns in GOCs as well as their responses to landscape patterns. The model exhibited satisfactory performance, with percent of samples correctly predicted (PCP) value of 82.33% and area under receiver operating characteristics curve (AUC) value of 0.70. Using the hybrid model, the per-pixel rise probability of annual average GOCs at a spatial resolution of 1 km in Shenzhen were generated. The results showed that (1) annual average GOCs were increasing in Shenzhen from 2015 to 2020, and had obvious spatial differences, with a higher value in the west and a lower value in the east; (2) variation trend in GOCs was significant positively correlated with landscape heterogeneity (HET), while significant negatively correlated with dominance (DMG) and contagion (CON); (3) GOCs in Shenzhen has a great risk of rising, especially in GuangMing, PingShan, LongGang, LuoHu and BaoAn. The results provide not only a preliminary index for estimating the GOC variation trend in the absence of air quality monitoring data but also guidance for landscape optimizing design from the perspective of controlling ground-level ozone pollution. [ABSTRACT FROM AUTHOR]

Based on the sample of major asset restructuring transactions of Shanghai and Shenzhen A-share listed companies from 2009 to 2018, this paper uses Logit model to examine the impact of auditors ' cooperation experience with independent financial advisors on the reliability of performance commitments, and to examine the moderating effect of management overconfidence on the relationship between the two. The results show that the cooperation experience between auditors and independent financial advisors is significantly positively correlated with the reliability of performance commitment, and the closer the cooperation experience is, the easier the performance commitment will be realized, this has played a financial intermediary team effect. Further analysis shows that in the context of management overconfidence, the positive relationship between financial intermediaries ' cooperation experience and the reliability of performance commitment is stronger. The research results enrich the research on the influencing factors of M & A performance commitment and the economic consequences of financial intermediaries ' cooperation, and help the transaction subjects to rationally view performance commitment and regulators to improve policies and regulations. [ABSTRACT FROM AUTHOR]

In this paper, taking the 14837 annual audit reports of 4159 listed companies in Shanghai and Shenzhen Stock Exchanges from 2017 to 2020 as samples, and taking the information entropy value of KAM disclosures and the type of audit opinion as the agent indexes of the explanatory variable and the interpreted variable respectively, whether the disclosure of KAMs could improve audit quality had been empirically tested and analyzed. The results shown that: (1) The regression coefficient of information entropy value of KAMs disclosure was 0.1785, which shown a significant positive correlation, and was established at the level of 1% significance, that was to say, KAMs disclosure can improve audit quality. (2) The marginal effect coefficient was only 0.0081, which meant that there was some information redundancy in the KAMs disclosure and the enhancement effect on audit quality was weak. (3) In the robustness test, the interpreted variable was respectively replaced by audit cost (taking the natural logarithm of audit cost) and manipulated accrual profit (taking the absolute value of manipulated accrual profit), the regression coefficients of information entropy of KAMs were 0.0852 and 0.0017 respectively, which shown a significant positive correlation and were consistent with the results of the main regression test. (4) Further research shown that whether the industry in which the audited company was located and whether the audit institution was one of the international Big Four would affect the disclosure of KAMs, and then affect the audit quality in the same direction. The implementation effect of the new audit reporting standards was supported by these test evidences. [ABSTRACT FROM AUTHOR]

Since December 2019, the COVID-19 pandemic has quickly spread across the world. The traditional understanding of the relationship between wealth and the spread of contagious diseases is that similar to many precedent epidemics, the pandemic spread easily in poor neighborhoods in many countries. The environmental and socioeconomic implications of the COVID-19 pandemic are still poorly understood, thus this paper examines the relationship between neighborhood characteristics and the spread of the pandemic through a case study of Shenzhen, a Chinese megacity with many low-income rural migrants. The major finding is that wealthier and larger neighborhoods in Shenzhen were more likely to be infected in the first wave of the pandemic in 2020. This spread pattern is likely to result from China's strict control to prevent the pandemic, human mobility, and demographic characteristics such as income. This finding reveals a new phenomenon that contrasts with the traditional understanding of the influence of wealth on the spread of epidemics. This paper enriches the understanding of the role of neighborhoods in the spread of the pandemic, and it has important public policy implications. [ABSTRACT FROM AUTHOR]

The pressure upon local governments to redeem their debt could affect government fiscal ability. It could consequently affect their fiscal policies on corporations, which might distort corporate innovation. Based on the data of Chinese Shanghai and Shenzhen A-share listed companies and the local government implicit short-term debt financed by local government financing vehicles (LGFVs) in 31 provinces, this paper shows that local government debt (LGD) negatively affects corporate R&D investment in China, thereby suggesting a strong crowding-out effect. The crowding-out effect is more pronounced when the firm is a non-state-owned enterprise (NSOE), the firm's size is small, the firm's age is young, or the firm is in the lower market competition. This paper provide evidence by interacting the terms that local government actions, such as consumption of fiscal resources, strengthening tax collection efforts, or consumption of credit resources, might partially account for the crowding-out effect. This study illustrates the innovation costs of local government debt. [ABSTRACT FROM AUTHOR]

In the era of innovation dividends, whether investors, as the main participants in the capital market, can tolerate enterprise innovation activities is the key to whether the capital market can help enterprises innovate. This paper takes the listed companies of Shanghai and Shenzhen A-shares in China that disclosed quantitative performance forecasts from 2016 to 2021 as samples, obtains the market reaction of performance forecasts through the event study method and uses them as proxy variables of investors' short-term performance expectations, and uses multiple regression analysis to explore the impact of corporate R&D on investors' short-term performance expectations. The results are as follows: (1) corporate R&D investment significantly reduces investors' short-term performance expectations (that is, investors have a significant tolerance effect on enterprises with higher R&D investment); (2) the increase in the shareholding ratio of institutional investors weakens the tolerance effect; and (3) with the implementation of China's innovation-driven strategy, the tolerance effect of its capital market on enterprise R&D gradually increases, especially for high-tech companies, but has a low tolerance effect on state-owned companies' R&D risk. The results show that investors in China's capital market are not completely rational in their response to corporate R&D, and investors are willing to bear more short-term performance losses for high R&D investment, which is consistent with prospect theory. [ABSTRACT FROM AUTHOR]

This paper tests the impact of local government debt on enterprise innovation based on 2011–2017 A-share non-financial enterprise data from Shanghai and Shenzhen Stock Exchanges. The results show that the relationship between government debt and enterprise innovation relationship follows an inverted U-shaped pattern. Endogeneity processing and robustness test result confirm the results of the model built for this study. Heheterogeneity analysis finds that the inflection points of local government debt in large enterprises, non-SOEs (non-state-owned enterprises) and poorly financialized regions are lower. Financing constraints and corporate profits play a part of the intermediary effect in the inverted U-shaped relationship between local government debt and enterprise innovation. Further research shows that Digital finance plays a moderating role in the impact of local government debt on enterprise innovation. Therefore, to keep local government debt scale compliant and to maximize the efficiency of digital finance are of great significance in terms of boosting enterprise innovation and improve economic development. [ABSTRACT FROM AUTHOR]

Land ecological security is the core of regional coordinated economic development and land ecological security planning. In this paper, with Shenzhen as the research area, 28 evaluation indicators were selected from 5 dimensions based on the DPSIR model to construct an indicator system for land ecological security evaluation, so as to evaluate the land ecological security status in the research area from 2009 to 2019. Based on the TOPSIS evaluation model, regional levels were determined, and finally the GM (1,1) model was adopted to scientifically predict the land ecological security system of Shenzhen from 2020 to 2025. The results showed that: (1) from the perspective of the main influencing factors, the weight of 16 indicators of Shenzhen's land ecological security exceeds 0.03, including the total output value of agriculture, forestry, animal husbandry and fishery (D5) and Engel coefficient (I4). These factors are the main factors that have led to the deterioration of land ecological security in Shenzhen in the past decade; (2) comprehensive situation analysis revealed that from 2009 to 2019, the level of land ecological security in Shenzhen exhibited an increasing trend overall, but the land ecological security in Shenzhen still needs to be greatly improved; (3) regarding various subsystems, from 2009 to 2019, except the pressure subsystem which was in a downward trend, other subsystems showed a fluctuating and upward trend; (4) after modeling and calculation using the GM (1,1) model, it was concluded that most of the indicator factors are in a slow growing trend with the social and economic development of Shenzhen, but severe land ecological problem still exists. The research result is expected to provide a reference for the stable and sustainable development of society and economy and regional land ecosystem protection. [ABSTRACT FROM AUTHOR]

By using the data from Chinese listed companies in the Shanghai and Shenzhen A-share market for the period 2007 to 2019 and the Report on the Work of the Government, this paper investigates the impact of the local government's economic growth target constraints on enterprise technological innovation and its mechanism. It is found that the local government's economic growth target constraints significantly inhibit enterprise technological innovation, which is more obvious in the samples of SOEs, regulated industries, and enterprises at low marketization levels. The change of government officials' performance appraisal indicators from the quantity to quality of economic growth can alleviate the negative effect. The mechanism effect test indicates that the local government's economic growth target constraints will aggravate enterprise financing constraints and decrease the contribution of R&D investment to enterprise performance, and further inhibit enterprise technological innovation. [ABSTRACT FROM AUTHOR]

The majority of insurance investment funds are derived from policy liability debt funds. It differs from other institutional investors in a number of ways, including investment size, horizon, duration, risk, and so on. However, only a small portion of the extant literature focuses on in-depth and extensive analysis of Insurance Institutional Investors' holdings (IIIs). This study analyses the impact of shareholding by insurance institutions on the value of Shanghai and Shenzhen A-share listed companies in China's capital market. The paper offers three major contributions. First, we discovered that long-term equity-holding IIIs have both value selection and value creation functions. Second, the value creation function becomes more significant among long-term stock-holding IIIs with an increase in the period during which they retain the company's shares; Third, fast-in and fast-out (FIFO) IIIs have a value-inhibiting effect on the held company and serve a value selection role, rather than a value creation function. This study provides more insight on the lack of academic interest in insurance institutions and serves as a foundation and reference for the design of regulatory policies for insurance institutions' involvement in stock markets. It also gives empirical evidence for corporations to accurately analyze shareholding by insurance institutions. Furthermore, since this study concentrates on China's capital market, it can serve as a benchmark for other nations, particularly, those designated as developing market economies. [ABSTRACT FROM AUTHOR]

Cross-border transactions have been more and more popular around the world. However, the current cross-border transactions still have risks and challenges, e.g., differences in regulation policies and unbalanced profits of banks. To address this critical issue, we construct a new framework for the transaction system with the support of blockchain technology. In this paper, we propose a new consortium blockchain system, namely asymmetric consortium blockchain (ACB), to ensure the implementation of cross-border transactions. Different from traditional consortium blockchain, the new blockchain system could support the supernode to regulate all the transactions timely. Furthermore, the new smart contract is designed to lower the opportunity loss for each node and make the profits allocation system fairer. In the end, the numerical experiments were carried out based on the transactions of Shenzhen and Hong Kong. The results show that the proposed ACB system is efficient to make the profit allocation fairer for the participants and keep intelligent for the new cross-border transaction system. [ABSTRACT FROM AUTHOR]

Increasing concerns about air pollution and the promise of enhancing energy security have stimulated the growth of electric vehicles (EVs) worldwide. Compared with gasoline vehicles (GVs), EVs have no emissions and are more environmentally friendly to the sustainable transportation system. Since these two types of vehicles with different emission externalities and observable differences, in this paper, we propose a differentiable road pricing for EVs and GVs to simultaneously manage congestion and emissions by establishing a two-class bi-objective optimization (TCBO) model. First, we investigate whether the differentiable road pricing can induce user equilibrium pattern into a unique pareto-efficient pattern. Then performance of the bi-criteria system optimal is measured by bounding the deviation gap of the Pareto frontier. Specifically, we bound how far the total system travel time and total system emissions at a given Pareto optimum can deviate from their respective single-criterion based system optimum. Finally, we investigate the maximum efficiency gain of the bi-criteria system achieved through implementing differentiable road pricing by comparing total system travel time and total system emissions under two states. After defining two types of price of anarchy (POA), the theoretical bound for the worst possible ratio of total system travel time\ total system emissions in user equilibrium state to the total system travel time\ total system emissions in Pareto-efficient state is derived out. In order to validate the feasibility of theoretical bound, we conduct case studies to calculate the numerical bound of POA based on two Chinese cities: Shenzhen and Lasa. Overall, quantifying the maximum efficiency of differentiable road pricing is beneficial for improving the network designing, policy implementation and social efficiency with regard to congestion and emissions caused by EV and GV users. [ABSTRACT FROM AUTHOR]

Background: Outbreaks of hand-foot-mouth disease (HFMD) have been reported for many times in Asia during the last decades. This emerging disease has drawn worldwide attention and vigilance. Nowadays, the prevention and control of HFMD has become an imperative issue in China. Early detection and response will be helpful before it happening, using modern information technology during the epidemic. Method: In this paper, a hybrid model combining seasonal auto-regressive integrated moving average (ARIMA) model and nonlinear auto-regressive neural network (NARNN) is proposed to predict the expected incidence cases from December 2012 to May 2013, using the retrospective observations obtained from China Information System for Disease Control and Prevention from January 2008 to November 2012. Results: The best-fitted hybrid model was combined with seasonal ARIMA and NARNN with 15 hidden units and 5 delays. The hybrid model makes the good forecasting performance and estimates the expected incidence cases from December 2012 to May 2013, which are respectively −965.03, −1879.58, 4138.26, 1858.17, 4061.86 and 6163.16 with an obviously increasing trend. Conclusion: The model proposed in this paper can predict the incidence trend of HFMD effectively, which could be helpful to policy makers. The usefulness of expected cases of HFMD perform not only in detecting outbreaks or providing probability statements, but also in providing decision makers with a probable trend of the variability of future observations that contains both historical and recent information. [ABSTRACT FROM AUTHOR]