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]

Currently, digital transformation is having various impacts on enterprises around the world, including the green innovation. However, the current literature on the relationship between digitalization and green innovation in enterprises is scarce. What is the relationship between them, and whether heterogeneous environmental regulation has mediating effects, are questions that are worth exploring. Using a sample of listed manufacturing enterprises in China, this paper empirically tests the impact of digital transformation on enterprise green innovation. The results show that: (1) Digital transformation has a significant positive impact on green innovation, including green innovation output and green innovation capability. (2) Diverse environmental regulation may have mediating effects of digital transformation's influence on green innovation. (3) After a number of robustness tests, the conclusions are still valid. This paper can provide a reference for developing green development strategies for manufacturing enterprises. [ABSTRACT FROM AUTHOR]

This paper presents an examination of the relationship between international operations and corporate R&D investment. Using a large sample of Chinese listed firms for the 2009–2022 period and the ordinary least squares method, we find that international operations have a positive effect on corporate R&D investment. The finding remains valid after a battery of robustness tests. Mechanism tests show that international operations increase corporate R&D investment by diversifying product demand instead of increasing firms' international knowledge acquisition. This paper provides new evidence on the role of international operations in innovation activities. [ABSTRACT FROM AUTHOR]

This paper theoretically analyzes and empirically examines the impact and mechanisms of automated machines on employment in manufacturing enterprises, drawing on task-based model and using micro data from listed Chinese manufacturing enterprises between 2012 and 2019. Our findings reveal that: (1) Automated machines in manufacturing enterprises leads to a substitution effect on the total labor force, with a substitution effect on low-skilled labor and a creation effect on high-skilled labor in terms of employment structure. (2) Further analysis indicates that automated machines primarily have a positive effect on R&D and technical staff, a non-significant effect on sales staff, and a negative impact on production, administrative, and financial staff. (3) The primary influencing mechanisms of automated machines on employment in manufacturing firms are productivity effects and output scale effects, based on the mediation effect model. (4) Considering the industry linkage effect, we employ the input-output method and the Input-Output Table and find that automated machines for upstream (downstream) manufacturing enterprises will result in a substitution effect on employment for downstream (upstream) enterprises. The novelties and research contributions are as follows: (1) we conduct a structural decomposition of total employment, and further decompose employment positions into production, R&D, sales, finance, and administration. (2) We try to investigate the industry linkage effect about the impact of automated machines on the employment of upstream and downstream enterprises. (3) We use data from listed manufacturing companies, and the data of existing research are about provincial and industry-level data. [ABSTRACT FROM AUTHOR]

This paper aims to examine the impact of executive compensation incentive on corporate innovation capability by dividing executive compensation incentive into short-term monetary incentive and long-term equity incentive. We also investigate the interaction between the two types of executive compensation incentive. Data are collected from China's agro-based companies during 2012–2019, and multiple regression analysis is utilized. The empirical results show that short-term monetary incentive has no impact on innovation capability, while long-term equity incentive stimulates innovation capability. Regarding company ownership, the impact of long-term equity incentive in state-owned enterprises is greater than that in private-owned enterprises. In addition, the complementary effect between short-term and long-term compensation incentive has a positive impact on innovation capability regardless of company ownership. The findings of this paper could help agribusiness managers to design the reasonable incentive system to incentivize corporate executives and enhance the capability of independent innovation. [ABSTRACT FROM AUTHOR]

In the face of the new economic environment, enterprises must continuously enhance their capabilities to achieve long-term development. In the current market scenario, business management relies on economic principles and legal accounting. Considering the current market situation, the article analyzed enterprises system reform and production planning, proposing corresponding countermeasures. Therefore, in order to achieve rapid development, it was necessary to strengthen the management of enterprises. In this paper, the current problems faced by enterprises, solutions and the significance of enterprises needed to improve their management level were explained, and the situation of enterprises was analyzed through the enterprise strategic management model. Comparing with the traditional management model in terms of the complexity of enterprise management processes, efficiency, management level score, and quarterly profit,findings reveal that the management model in the new economic environment has reduced the complexity of the enterprise process by 0.17 points. The management efficiency has increased by 0.15 points, the management score has increased by 14 points, and the quarterly profit of the company has increased by 30,000 yuan. Furthermore, it is elucidated that, in the new economy, enhancing the management level is essential for enabling enterprises to attain long-term development. [ABSTRACT FROM AUTHOR]

The "dual circulation" development pattern is a major economic strategy proposed by China. Using samples gathered from firms located in the Haidian Science and Technology Park in Zhongguancun between 2013 and 2019, this paper constructs an index system for measuring the degree of synergy of the dual circulation coupling of the firms, and then uses the Cloglog survival model to empirically verify its effect on the survival of firms. It is found that the dual circulation coupling synergy of firms significantly contributes to firm survival, a finding that still holds after robustness tests. Mechanism tests show that firm dual circulation coupling synergies contribute to firm survival by promoting firm innovation, market demand, and resource allocation efficiency. Further analysis reveals that the coupled synergy of the dual circulation of firms contributes more significantly to the survival of growing and mature firms, MSMEs, private firms and non-start-up firms. This paper is the first to measure dual circulation. It provides micro-theoretical mechanisms and relevant empirical evidence for the dual circulation coupling synergy for firm survival. [ABSTRACT FROM AUTHOR]

Industrial technological progress, as an essential industrial-technological and institutional phenomenon, brings with it the possibility of high profits for firms but also implies new norms and rules of competition, which affect the willingness and propensity of firms to bear the costs of undertaking venture capital projects. This study empirically investigates the causal impact of industrial-technological progress on corporate risk-taking and the mechanism of digital financial growth on the relationship between the two, based on data from China's A-share listed businesses from 2011 to 2020. This paper finds that (1) industrial technological progress improves enterprise risk-taking levels. Moreover, digital financial development has an incentive effect on industrial technological progress and enterprise risk-taking levels. (2) Industrial technological progress under digital financial development generates financing constraint relaxation effects, input capital return enhancement effects, and innovation performance incentive effects, increasing enterprise risk-taking. (3) The positive moderating effect of digital financial development on the relationship between industrial technological progress and the risk-taking level of enterprises in the eastern regions and enterprises in the high-tech industry is more prominent. The study's findings provide a theoretical foundation and policy insights on the crucial elements of industrial-technological progress and enterprises' increased ability to take risks throughout the development of digital finance. [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]

Alternative institutions have played a significant role in the difficult and tenacious development process of private enterprises in recent decades. the paper applied 306 listed companies' data from January 2012 to December 2022 to investigate the relationship between institutional gap and enterprise behavior. Based on the identified, classified, and explained formal and alternative institutions, it proposed the concept of 'institutional gap' to infer the overlapped content of these two states. Concluding from the empirical results, Chinese private enterprises that introduced state-owned equity outperformance in management, financing and entering industries with high barriers. Moreover, the channel of state-owned equity introduction is compared with entrepreneurs' political participation. Although introducing state-owned equity is a crucial approach, the establishment and improvement of relevant legal systems is suggested, such as formal regulations and laws. The government should deepen the reform of the economic system to improve the business environment, so private enterprises consciously rely on market mechanisms to allocate resources efficiently and rationally, instead of actively seeking connections with the government to obtain benefits. The supervisory role of checks and balances shareholders should be exerted to the greatest extent to maintain and increase the value of state-owned assets, rather than allowing the controlling private shareholders to use them as resources acquired political capital. [ABSTRACT FROM AUTHOR]

Based on China's transaction-level trade data and firm-level production data during the period 2000–2006, this paper firstly estimates the export cutoff productivity by applying non-parametric ROC method. The results are as follows. First, under the full sample, the export cutoff productivity is 7.051. Second, the export cutoff productivity of home enterprises is relatively low, and that of foreign enterprises is relatively high. Third, the export thresholds of capital-intensive and technology-intensive industries are relatively high, while that of labor-intensive industry is relatively low. Fourth, the export threshold of western provinces is relatively high, followed by central provinces and eastern provinces. In addition, this paper investigates the dynamic change of export threshold. The result indicates that the evolution of export threshold is generally a horizontal S-shape during the sample period, and after China's accession to WTO in 2001, it is an inverted U-shape. [ABSTRACT FROM AUTHOR]

People typically purchase residential properties for two reasons: to live in or invest. However, both purposes necessitate careful consideration before deciding because high financial costs are involved, and housing loans are typically considered necessary for this purpose. Customers' demands are constantly changing, becoming more complicated with higher requirements. The focus of this research is on tourism real estate selection. This market in Vietnam is still new and emerging and has encountered numerous issues regarding government policy, finance, and land authorization for constructing, owning, and managing. Because the form of tourism real estate is still new, customers are hesitant about investing in or buying these properties. Hence, to compete in the current fiercely real estate industry, real estate firms must understand their customers' expectations by frequently involving customer research in the company's strategy. However, there is still a lack of research on the connection between these factors and individual expectations in the well-known philosophy of the Theory of Planned Behavior (TPB), leading to behavioral intentions. Therefore, to fulfill the gap in the previous literature, this paper aims to investigate the connection between these factors with core variables of TPB, hence, addressing the current problems in the real estate industry. 471 valid respondents in Vietnam were collected for data analysis through two survey approaches. PLS-SEM was used to test hypotheses due to the relationship complication in the conceptual models. The results show that government policy influences attitudes and perceived behavioral control, whereas social infrastructure affects social norms and perceived behavioral control. Moreover, Fengshui ambient condition also positively influences all three core factors: attitudes, social norms, and perceived behavioral control. Finally, these factors impact on intention to buy tourism real estate. Through results, this paper has developed a purchase intention model through social aspects of the tourism real estate industry. In addition, this paper demonstrates the connection between social factors and individuals' expectations for a purchase intention, providing the importance of the government's role, architecture style, and social infrastructure in the marketing literature of the real estate industry. As a result, managers and governments need to take advantage of new releases of government regulations in time to enhance customers' positive attitudes toward purchasing tourism real estate. Moreover, social infrastructure and Fengshui conditions are crucial to establishing social norms and perceived control, aiming to leverage the intention to purchase tourism real estate. Thereby, recommendations of marketing strategies based on these findings were suggested to attain the optimal result for sales. Finally, this research also includes some limitations. Hence, suggestions for further research were also provided, such as possible moderation, possible mediating effects, or control of data bias. [ABSTRACT FROM AUTHOR]

Enterprise financialization will block the equipment update and technological innovation of enterprises by crowding out the main business funds. The risks and benefits of supply chain concentration will affect the enterprise financialization. This paper selects the panel data of A-share listed companies in China from 2009 to 2021, and uses fixed effect regression to analyze the impact of supply chain concentration on enterprise financialization. The conclusions show: both suppliers and customers concentration significantly promote the financialization of enterprises, and this conclusion is still valid after a series of tests; This kind of financialization effect is heterogeneous in four aspects: the nature of property rights, the scale of enterprises, the intensity of industrial competition and the level of economic development in the region where the enterprises are located; the mechanism analysis show that customer concentration can affect enterprise financialization through upstream commercial credit, but supplier concentration cannot affect enterprise financialization through downstream commercial credit. [ABSTRACT FROM AUTHOR]

The profound changes brought about by informatization and digitalization have given rise to the user-centered innovation concept, and value co-creation by enterprises has become an inevitable trend. It has become a pressing issue for scholars to analyze the mechanism of consumer participation in the value co-creation of innovative enterprises. In this paper, by establishing an evolutionary game model between consumers and innovative enterprises, we analyze in depth the mechanism of consumer participation in the value co-creation of innovative enterprises. The results show that the initial cooperation probability between consumers and innovative enterprises directly affects their strategic choices; the establishment of reward mechanisms makes consumers more inclined to choose active participation in value co-creation strategies; as the probability of non-cooperation between the two parties being reported increases, the probability of consumers and innovative enterprises choosing cooperation also increases. Studying the mechanism of consumer participation in the value co-creation of innovative enterprises has essential theoretical and practical significance for enterprises to achieve value creation, enhance competitiveness, and promote innovation. This study not only enriches and develops relevant theories but also provides guidance and support for the practice of enterprises, promoting sustainable development and successful co-creation. [ABSTRACT FROM AUTHOR]

To stimulate economic growth, China has launched multiple economic stimulus plans in recent years, intensifying corporate debt financing and subsequently elevating the leverage levels. Addressing and effectively reducing the leverage levels of our country's enterprises has emerged as a pressing issue in the trajectory of our economic development. This paper primarily investigates the drivers, pathways, and mechanisms for reversing the over-leveraged values of enterprises. Key findings include: (1) Excessive indebtedness exerts a negative impact on corporate value, with the suppressing effect intensifying as the degree of over-leverage increases; (2) Over-leveraged enterprises can effectively decrease their debt levels and enhance their value through private placement. Further research suggests that this mechanism operates by amplifying the operational leverage of over-leveraged enterprises post private placement and alleviating financing constraints, thereby elevating corporate value. (3) Compared to non-state-owned enterprises, state-owned enterprises exhibit higher levels of indebtedness. Among over-leveraged firms, enhancements in corporate governance and increased investment efficiency can positively transform corporate value. This study offers valuable insights for the ongoing supply-side structural reforms and governance guidance from the regulatory bodies. [ABSTRACT FROM AUTHOR]

The production connection is a crucial component of the Inter City Association. An urban network based on the enterprise perspective better reflects the structural characteristics of regional cities. Based on data gathered from the headquarters and branches of the listed manufacturing enterprises in 2020, this paper analyzes the county-level administrative units in the Beijing-Tianjin-Hebei region of China. Using the subordinate connection model and the social network analysis method, this paper examines the spatial structural characteristics and factors of urban networks in the Beijing-Tianjin-Hebei region. The results suggest that resource allocation in the Beijing-Tianjin-Hebei region is unbalanced, with a significant difference in urban radiation and agglomeration capacity. As the administrative centers, Beijing, Tianjin, and Shijiazhuang show a strong ability to allocate resources within the network. The overall network density in the region was shown to be relatively low, with the main links being of low or medium level. The urban network is defined by the network connection led by Beijing and Tianjin with Beijing-Tianjin-Tangshan and Beijing-Baoding-Shijiazhuang as the main axis. These cities exhibit a "dense southeast and sparse northwest" pattern. From a hierarchical perspective, high-level network connections are based mainly on spatial proximity. Analyzing the agglomerative subgroups, the study found that the inner and outer connections of the core subgroups were relatively high. Semi-marginal subgroups generally accepted the radiation of core subgroups, while marginal subgroups had little connection with other subgroups in the region. The results of the QAP analysis show that the administrative relationship, spatial distance, city size difference, economic development level difference, industrial structure difference, and labor cost difference have a significant influence on the urban network of the Beijing-Tianjin-Hebei region. [ABSTRACT FROM AUTHOR]

Delayed production mode has been adopted by an increasing number of process production enterprises as a method to realize mass customization of multi-products. This paper used the convolutional neural network-long short-term memory artificial neural network algorithm (C-LSTM) in data mining technology to analyze and determine factors that have an impact on delayed production mode in the internal and external production and operation of enterprises. Combined with the actual production situation of iron and steel enterprises, a quantitative model of the delayed production was constructed. Lastly, data from a large iron and steel enterprise with good operation was used to verify the validity of the proposed model and analyze key influencing factors. According to the research, in scenarios of considering PDP alone, considering CODP alone, considering both PDP and CODP, considering PDP and CODP and using data mining technology to model, the matching degree of these methods with the actual situation of the enterprise is 31.8%, 61.4%, 71.6% and 86.6%, respectively. The numerical analysis results of the model based on data mining technology show that in delayed production, when customer service level improves or the delay penalty coefficient increases, the optimal locations of the product differentiation point (PDP) and customer order decoupling point (CODP) move toward the end of production, and the total cost increases gradually. When the difference in production cost or benefit of early delivery between the candidate locations of PDP and CODP is small, optimal locations of PDP and CODP are close to the beginning of the general and dedicated production processes. With an increase of cost difference or early delivery benefit, the optimal locations of PDP and CODP jumped to the end stage of the general and dedicated production processes, and the total cost begins to decrease. [ABSTRACT FROM AUTHOR]

Financial subsidies and tax incentives play essential roles in the innovation efficiency of enterprises. This paper selects Chinese listed NEV enterprises from 2010 to 2022 as a research sample and investigates various impacts under various circumstances. We find that both financial subsidies and tax incentives can promote the innovation efficiency of NEV enterprises. Compared to financial subsidies, tax incentives are more effective; the interaction between financial subsidies and tax incentives has a weaker impact on the innovation efficiency of NEV enterprises. Both financial subsidies and tax incentives have more potent innovation effects on enterprises with higher financing constraints. In addition, financial subsidies and tax incentives have a stronger innovation efficiency effect on private enterprises than state-owned enterprises. Further research shows that marketization and market distortion affect the innovation efficiency of NEV enterprises. This study provides a new perspective for understanding the effects of financial subsidies, tax incentives, and innovation efficiency of NEV enterprises, and the conclusions and suggestions are relevant references for the government to improve the quality of policy-making. [ABSTRACT FROM AUTHOR]

The development of green finance and the promotion of green transformation and upgrading of high energy-consuming enterprises are of great significance for China to achieve the "double carbon" goal. This paper employs a dual fixed-effects model to examine the profound ramifications and intrinsic mechanisms of green finance development on the transformative innovation of high-energy-consumption enterprises, using a sample of 462 publicly traded high-energy-consuming corporations from the period spanning 2016 to 2020. The results show that the development of green finance promotes the transformation and innovation of energy-intensive enterprises and that market-incentivized environmental regulation plays a partially mediating role; the results of heterogeneity analysis show that green finance promotes the transformation and innovation of high energy-consuming enterprises with significant differences in different low-carbon pilot regions, company ownership, and enterprise size; the mechanism analysis shows that the development of green finance can increase government subsidies and alleviate financing constraints to promote the transformation and innovation of high energy-consuming enterprises; it is also found that the development of green finance can significantly improve the financial performance of enterprises. The research findings of this paper hold significant implications for promoting the sustainable development of green finance and high-energy consumption enterprises in China. They provide valuable insights and references for facilitating the green transformation and innovation of high-energy-consuming enterprises in China as well as other developing countries. [ABSTRACT FROM AUTHOR]

Due to the confidentiality, value and exclusivity of technical secrets, how to protect the technical secrets within cultural industry clusters has become a paradoxical issue and a research hotspot. Focusing on the collaborative protection of technical secrets within cultural industry clusters, this paper analyzes the strategies of collaborative protection of technical secrets between leading enterprises and following enterprises based on evolutionary game theory, and uses dynamic evolution and simulation methods to identify key factors behind the strategy choices, which further enriches the evolutionary mechanism of collaborative protection, and expands the application scenarios of the theory of evolutionary game. As the research results show, the collaborative protection strategy of technical secrets within cultural industry clusters is feasible, the cost of collaborative protection, government subsidies, and compensation for collaborative deposits are key variables that determine the trend of the game. The government subsidy coefficient, the collaborative deposits, and the difference in the number of technology secrets are strongly sensitive factors underlying the mode of protection, while the synergistic benefits between firms are weakly sensitive factors. Therefore, this paper proposes that increasing government subsidies and collaborative deposits, and reducing the differences in the number of technical secrets among game subjects can promote enterprises to eliminate suspicion and increase their willingness to cooperate in protecting technical secrets. [ABSTRACT FROM AUTHOR]

This paper takes the 2014 pilot project of accelerated depreciation of fixed assets as a quasi-natural experiment, and builds a Propensity Score Matching–Difference in Differences (PSM-DID) model based on the data of Chinese listed companies from 2000 to 2019 to test the impact of tax preference on enterprise investment efficiency and its mechanism. The results show that the policy inhibits supported enterprises investment efficiency significantly. Heterogeneity analysis shows that the policy causes greater investment efficiency losses for small and medium-sized enterprises, non-state-owned enterprises and asset-heavy enterprises. The mechanism test found the reason why the policy eased financing constraints but inhibited investment efficiency in short-term. After a variety of robustness tests, the above basic conclusions are still valid. Although the accelerated depreciation policy of fixed assets is conducive to expanding the scale of investment, the incentive effect on investment efficiency is not obvious, and even shows a restraining effect. Given the existence of heterogeneity, the design of the policy should not only distinguish industries, but also pay attention to the differences between different enterprises in the same industry. Strengthening research and development (R&D) innovation and improving the matching mechanism between human capital and fixed investment will help give full play to the incentive effect of this policy. The research in this paper helps to deepen the understanding of the microeconomic effects of tax policy and identify the internal mechanism, which not only enriches the relevant literature, but also provides a reference for the government to better use tax policy to promote the high-quality development of enterprises. [ABSTRACT FROM AUTHOR]

This paper constructs a double difference model (DID) based on the China Private Enterprise Survey (CPES) data over the period 1995–2019, combined with the 2005 national census data and considering the policy shock of the implementation of the Chinese government's Minimum Wage Regulation in March 2004, to investigate whether rising labor costs promote private firms' innovation investment. Robustness tests are conducted using placebo tests and event study methods. The study finds that (1) rising labor costs significantly increase private firms' R&D investment and that this effect has significant lag and cumulative effects; (2) private industrial firms (especially above-scale private industrial firms) are more affected by rising labor costs than other private firms and have more incentives to increase innovation investment; and (3) innovation investment of below-scale private industrial firms is not significantly affected by rising labor costs. [ABSTRACT FROM AUTHOR]

Large-scale sports events have become a good opportunity for major enterprises to promote due to their high social attention; however, they also force enterprises to confront the risks of uncertainty and extreme loss. During the 2018 Russia World Cup, Vatti Co., Ltd.'s promotion activity "If France Wins, Get a Full Refund" suffered double losses economically and reputationally due to France's victory and the company's failure to fulfill its promise. This paper uses option hedging theory, and the risk management tools to construct a risk management model. Case analysis and program improvement were carried out. The research results show that using the winning odds can effectively control the risks. Companies should determine their promotion plan based on sale returns and the maximum implicit income generated by promotional activities. The research paper opens a new field using derivative financial instruments to control corporate promotion risks. [ABSTRACT FROM AUTHOR]

Chinese traditional culture is characterized by "Quan Zi" culture with a "differential order pattern". As a special informal institutional arrangement, "Quan Zi" plays an important role in the capital market. This paper investigates how Venture Capital Quan Zi affects the stock mispricing of invested companies. Using the syndicate investment data of China's venture capital institutions from 2009 to 2019, this study documents that Venture Capital Quan Zi significantly increases the positive deviations of stock prices of Quan Zi-backed firms but has no obvious influence on the negative deviations, showing an asymmetric effect on stock mispricing. In addition, this effect is dynamic. Stock mispricing significantly increased in the lock-up period and the following year, but then gradually weakened. Mechanism tests suggest that, on the one hand, Venture Capital Quan Zi increases a company's earnings manipulation, thus raising investors' expectations to push up stock prices. On the other hand, Venture Capital Quan Zi boosts the stock price through market reaction channels, increasing institutional investors' shareholdings, positive media coverage and stock liquidity. This paper has high theoretical and applied value to guide the orderly competition of capital and the supervision of institutional investors. [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]

The Chinese central government established eight pilot zones in five provinces for green finance reform and innovations (GFRI) in 2017. The pilot zones promote green finance development and explore the propagable and reproducible experiences regarding mechanisms and institutions. Adopting a sample of China's listed companies from 2012 to 2021, this paper constructed a quasi-natural experiment and investigated the GFRI policy's effect on firms' total factor productivity (TFP) using the difference-in-differences (DID) method to verify the implementation effect of the GFRI policy. Furthermore, heterogeneity analysis and mechanism analysis were conducted to identify the guidance effect and deep mechanisms of the GFRI policy. The empirical results demonstrated that firms' TFP in pilot zones increased substantially after implementing the GFRI pilot policy, confirming that the policy had a strong incentive effect. The corresponding promoting effect was particularly significant for non-state-owned companies, the eastern and central regions, and firms in the growth stage. Further mechanism analysis revealed that the GFRI pilot policy can stimulated firms' TFP by promoting technological innovation and improving resource allocation efficiency. This paper's empirical findings are essential in improving relevant policies and expanding the pilot zones. [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]

Many studies have shown that scaling laws widely exist in various complex systems, such as living organisms, cities, and online communities. In this research, we found that scaling laws also hold for companies. The macroscopic variables of companies, such as incomes, expenses, or total liability, all have power-law relationships with respect to the sizes of companies, which can be measured by sales, total assets, or the total number of employees. What is more, we also found the power law exponents always deviate from 1. That means large companies naturally have certain advantages, but the widely used financial indicators based on total volume or ratio may not reflect the company's status well because they are also size-dependent. To tackle this problem, this paper proposes a new set of evaluation indices based on the deviations of the macroscopic variables from the scaling law to eliminate the size-dependent effect. We found that the indicators based on deviations can give more reasonable evaluations for companies and can outperform other conventional indicators to predict the financial distress of companies. [ABSTRACT FROM AUTHOR]

In recent years, while the relationship between the new financial institutions, represented by financial technology companies, and the traditional financial institutions(banks, securities, insurance, etc.) has been steadily enhanced, a New Relational Network has silently emerged. Along with the rapid expansion of big fintech companies, the possibility of financial risk breeding and spreading in the New Relational Network is also rising. This article analyzes and simulates the risk contagion mechanism of big fintech risks based on the SIRS epidemic model. The study's findings imply that: when the number of big fintech companies infected with risk exceeds the risk threshold, the big fintech risk will spread in the New Relational Network. At this time, the number of big fintech companies infected with risk can be reduced below the threshold by enhancing the risk warning, risk management, risk buffering and blocking capabilities, and timely improving risk prevention and control measures in the post-infection phase. It means that the big fintech risk is controlled. For big fintech risks, proactive interventions are more effective than post-incident response measures. This paper makes the following recommendations for preventing big fintech risks: creating a risk monitoring and early warning system to raise the Big Fintech companies' direct immunization rates; strengthening the big fintech companies' risk management and risk mitigation capabilities; enhancing the internal and external supervision to achieve sustainable development of big fintech companies. [ABSTRACT FROM AUTHOR]

Compared with traditional manufacturing enterprises, intelligent manufacturing enterprises pay more attention to the investment of knowledge capital and technological capital. Taking 258 intelligent manufacturing listed companies in China from 2015 to 2020 as research samples, the paper selects the material capital, human capital, knowledge capital and technological capital of enterprises as the input variables of Cobb-Douglas production function. Considering that enterprises are often affected by spatial correlation, stochastic frontier panel model, spatial lag stochastic frontier panel model and dynamic spatial lag stochastic frontier panel model are constructed to measure capital allocation efficiencies of enterprises. The results show that all the factor capitals in the three models have a significant positive impact on enterprises' performance, and the dual lag effect of time and space is significant. Moreover, it is more reasonable to use the dynamic spatial lag stochastic frontier panel model to estimate the parameters and measure capital allocation efficiencies. The development of intelligent manufacturing industry has significant space-time spillover effect among provinces. About 52.98% of intelligent manufacturing enterprises have high capital allocation efficiencies, but 12.04% still need to further optimize capital allocation. The gap between the actual performance of the sample enterprises and efficiency frontier is mainly due to technical ineffectiveness. From a regional perspective, the top ten enterprises with high capital allocation efficiencies are all in the eastern region, but the average of capital allocation efficiency is the highest in the western region, followed by the eastern and central regions. [ABSTRACT FROM AUTHOR]

The construction of enterprise digitization serves as a "gateway" for the integration of the digital and real economies. As enterprises undergo robust digital transformations, it becomes crucial to delineate the pathway from enterprise digitization level to value creation and realization in order to maximize enterprise value. We select sample data from Chinese A-share listed companies from 2015 to 2021 as the research subject. Based on the fixed-effects model, we empirically test the impact of enterprise digitization level on both value creation and realization, as well as the mediating mechanism of entrepreneurship and internal control within it. The results indicate that the enterprise digitization level significantly enhances both value creation and realization. However, significant differences exist in the impact of the digitization level on value creation and realization among enterprises with different technological attributes and at different stages of the lifecycle. Further mechanism tests demonstrate that the "breakthrough-based" entrepreneurship and "compliance-based" internal control quality play effective mediating roles between enterprise digitization level and enterprise value. This study provides a new perspective for understanding the value creation and realization process in the digital context, and offers relevant insights for further stimulating and guiding enterprises of different types and stages to drive value enhancement with digital capabilities, thereby facilitating the deep integration of the digital with the real economy. [ABSTRACT FROM AUTHOR]

Leading enterprises in the industry chain play a demonstrative role, and promoting green innovation among leading enterprises is a meaningful approach to unlocking industry chain dividends. According to an analysis of the game process between customers and leading firms that incorporates the open innovation theory, we find a nonlinear role for the consumer discourse power in the leading firms' innovation. Furthermore, using data from Chinese A-share listed companies between 2012 and 2021, we observe an inverted "U" relationship between customer discourse power and green innovation. Notably, this effect is more pronounced in leading non-technology-intensive enterprises, industries with a high degree of industrial innovation, or regions with a high marketization degree. Our analysis also reveals that leading enterprises' client leads to financial limitations that influence green innovation. Additionally, leading enterprises play a driving role in achieving "joint progress" in green innovation with local non-leading firms, and this effect exhibits spatial spillover. [ABSTRACT FROM AUTHOR]

Technology-based small and medium enterprises (SMEs) are the driving force behind China's economic and technological development. However, these enterprises often face challenges in financing their research and development (R&D) activities due to limited financing opportunities. Previous research has primarily focused on the resource attributes of government innovation subsidies, which serve as a crucial funding source for these SMEs. This paper aims to explore the impact of government innovation subsidies on firms from a novel perspective, considering the signaling characteristics of these subsidies. The theoretical foundation of this study lies in the asymmetric information theory and the signaling mechanism through which government subsidies send signals about enterprises. The study uses enterprise data from 2012 to 2019 to investigate the effect of government subsidies on the R&D investment of enterprises listed on the SMEs Board in Chinese stock market. The results reveal a significantly positive effect of government subsidies on the R&D investment of SME Board–listed enterprises and verify the mediating role of financing constraints in this effect. The extent to which government subsidies influence the R&D investment of SME Board–listed enterprises is associated with the enterprises' ownership characteristics, debt ratios, and times interest earned ratios. This study contributes to the literature on the SMEs Board market and may provide the Chinese government insights into developing industry policies that maximize the effectiveness of government subsidies. [ABSTRACT FROM AUTHOR]

Based on the data of Chinese listed private companies from 2016 to 2020, this paper investigates the influence of the Chairman's member status of Communist Party of China (CPC) on targeted poverty alleviation. The research results demonstrate that the Chairman's CPC member status of private companies significantly increases the companies' willingness and the amounts of investment in poverty alleviation. The construction of the CPC organization can strengthen the role of the chairman's Communist Party of China member status in promoting targeted poverty alleviation. The conclusions are still valid through robustness tests, such as substituting dependent variables, adjusting the sample range, and PSM-paired samples. In addition, the Impact Threshold for a Confounding Variable is used to deal with endogenous problems. [ABSTRACT FROM AUTHOR]

Under the background of carbon neutrality, green development is the theme of today's times. The construction industry is an important part of the green development plan, and it is of great significance to study its green financing efficiency. Based on this, this paper uses the four-stage DEA model to explore the green financing efficiency of listed construction companies from 2019 to 2020. The conclusion shows that: firstly, the green financing efficiency of listed construction companies is low, and the demand for green financing has not been met. It is necessary to strengthen the support of green finance to meet the needs of its expansion. Secondly, the efficiency of green financing is significantly and complexly affected by external influencing factors. It is necessary to dialectically treat external influencing factors such as local industry development support, financial development level, and the number of patent authorizations. Thirdly, among the internal influencing factors, the proportion of independent directors has a significant positive impact on the green financing efficiency of listed construction companies, and the proportion of R&D investment has a significant negative impact. Listed construction companies need to increase the proportion of independent directors and control the proportion of R&D investment. [ABSTRACT FROM AUTHOR]

The technological development in the new economic era has brought challenges to enterprises. Enterprises need to use massive and effective consumption information to provide customers with high-quality customized services. Big data technology has strong mining ability. The relevant theories of computer data mining technology are summarized to optimize the marketing strategy of enterprises. The application of data mining in precision marketing services is analyzed. Extreme Gradient Boosting (XGBoost) has shown strong advantages in machine learning algorithms. In order to help enterprises to analyze customer data quickly and accurately, the characteristics of XGBoost feedback are used to reverse the main factors that can affect customer activation cards, and effective analysis is carried out for these factors. The data obtained from the analysis points out the direction of effective marketing for potential customers to be activated. Finally, the performance of XGBoost is compared with the other three methods. The characteristics that affect the top 7 prediction results are tested for differences. The results show that: (1) the accuracy and recall rate of the proposed model are higher than other algorithms, and the performance is the best. (2) The significance p values of the features included in the test are all less than 0.001. The data shows that there is a very significant difference between the proposed features and the results of activation or not. The contributions of this paper are mainly reflected in two aspects. 1. Four precision marketing strategies based on big data mining are designed to provide scientific support for enterprise decision-making. 2. The improvement of the connection rate and stickiness between enterprises and customers has played a huge driving role in overall customer marketing. [ABSTRACT FROM AUTHOR]

The manufacturing sector's adherence to managing natural resources from the environment still needs to be improved. This study's objective is to determine how Corporate Social Responsibility (CSR) influences the financial performance of manufacturing firms featured in the LQ45 Index, as measured by Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). All manufacturing companies that are included in the LQ45 Index's population for this study were sampled using the purposive sampling method. This study uses secondary data from the CSRI based on the Global Reporting Initiative (GRI) G4 standard for 2018–2020 and the annual reports of companies in the manufacturing industry sector listed on the LQ45 Index. Moreover, applying a quantitative methodology, descriptive statistical methods, conventional assumption tests, and simple linear regression analysis were applied in this study's data analysis. The results of the study proved that CSR has a significant effect on ROA but does not affect the ROE and NPM of LQ45 manufacturing companies. In accordance with the signaling theory, CSR disclosure sends a favourable message to outsiders, which stakeholders and shareholders will respond to through changes in business earnings. CSR implementation can establish a positive image for the company, but it can also improve the company's image in both the commodity and capital markets. Investors will be more attracted to a company with a positive corporate image since a positive corporate image increases consumer loyalty. As consumer loyalty rises, the company's sales will likewise rise, and its profitability will increase as a result. This paper opens a new research path in corporate social responsibility and financial performance for possible links among variables; a matter that has not been previously explored in Indonesia Manufacturing Public Companies. [ABSTRACT FROM AUTHOR]

This paper seeks to identify organisational abilities that influence the company's survival during crises. To address this issue, first–through literature review–we identified five groups of crucial organisational abilities that companies pursue during the crisis, i.e., strategic, technological, collaboration, entrepreneurial and relational. We have also identified four objectives that relate to surviving the crisis. Next, we have scrutinised 226 companies from two sides of the world, Poland (Europe) and Morocco (Africa), during the Covid-19 crisis. Quantitative analysis using Structural Equations Modelling demonstrated that surviving during a crisis depends mostly on strategic and entrepreneurial abilities such as the ability to shift resources quickly, organise the work in the firm effectively and plan strategically, as well as diversify its products and services perceived as critical. [ABSTRACT FROM AUTHOR]

Enterprises acquire heterogeneous knowledge through external knowledge search and adapt to the change of external environment, which is of great significance to enterprise breakthrough innovation. This paper takes the innovation ecosystem as the boundary of the research paradigm. Based on innovation ecosystem theory, knowledge management theory and enterprise innovation theory, this paper constructs a moderated mediation model of the enterprise knowledge search, knowledge integration and breakthrough innovation under the characteristics of innovation ecosystem network. This model is tested on the survey data of 344 technology enterprise and manufacturing industries including R&D departments in the Beijing-Tianjin-Hebei region. The research results show that: knowledge integration plays part of the intermediary role between knowledge search and enterprise breakthrough innovation; the larger the network scale, the stronger the network connection, the stronger the intermediary role of knowledge integration on the relationship between knowledge search and enterprise breakthrough innovation. The research results reveal the important role of the innovation ecosystem in enterprise breakthrough innovation. At the same time, the research on knowledge search and enterprise breakthrough innovation should consider the network characteristics of innovation ecosystem and the ability of enterprise knowledge integration. [ABSTRACT FROM AUTHOR]

Stock market prediction is the process of determining the value of a company's shares and other financial assets in the future. This paper proposes a new model where Altruistic Dragonfly Algorithm (ADA) is combined with Least Squares Support Vector Machine (LS-SVM) for stock market prediction. ADA is a meta-heuristic algorithm which optimizes the parameters of LS-SVM to avoid local minima and overfitting, resulting in better prediction performance. Experiments have been performed on 12 datasets and the obtained results are compared with other popular meta-heuristic algorithms. The results show that the proposed model provides a better predictive ability and demonstrate the effectiveness of ADA in optimizing the parameters of LS-SVM. [ABSTRACT FROM AUTHOR]

Equity incentive, as an institutional arrangement for the coordination of the interests of shareholders and managers, has been widely implemented by public companies in developed capital markets throughout Europe and America. However, does it work and/or when might it be more effective in emerging market economies such as China? We aimed to understand the effects of equity incentive plans implemented by listed companies in China and the potential influence of the general characteristics of contracts on the effectiveness of equity incentive plans. Based on behavioral decision theory, this paper adopts a multivariate linear regression model to analyze the 1695 equity incentive plans implemented in Chinese listed companies between 2010 and 2018 with their two-year lagged performance data. The empirical results show that the operational performance of companies after implementing equity incentive plans shows a trend of polarization. In the 95% confidence interval, the effect of restrictive stock incentive and exercise-constrained variables is not significant, while the validity period has a significant positive correlation and incentive intensity has a significantly negative correlation with the company's operational performance. Furthermore, the negative effects mentioned above become more obvious with a longer plan implementation period. Based on these conclusions, we suggest that companies could adopt equity incentive plans with a relatively longer validity period and more reasonable incentive intensity. Additionally, it would be better for companies to select non-restricted stocks as incentive tools if there is no obvious preference. [ABSTRACT FROM AUTHOR]

The low-carbon city pilot policy is an environmental regulation aimed at reducing carbon emissions at the municipal level. Previous research mostly focused on evaluating its environmental performance and discovered it could enhance pilot cities' low-carbon innovation. However, the effects of the low-carbon city pilot policy on firm-level low-carbon innovation and their economic impact have yet to be investigated. This research uses a sample of Chinese A-share listed firms and the difference-in-difference method to examine the effect of the low-carbon city pilot policy on firms' low-carbon innovation. The baseline regression showed that the low-carbon city pilot policy could greatly encourage low-carbon innovation among firms in pilot cities. The mechanism analysis demonstrated that this improvement effect is attained by easing these firms' financing constraints. According to the heterogeneity analysis, we discovered that state-owned firms and firms situated in pilot zones with municipal secretaries who have larger promotion incentives are more susceptible to this policy. Additionally, the research on this policy's economic impact revealed that, following its adoption, the market value and comparative advantages of the firms in the pilot areas also increased. The findings of this study have implications for the enhancement and national expansion of low-carbon policies adopted at the city level. [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]

Existing studies have recognized the significance of leadership ability on enterprises' digital transformation. However, few of them pay attention to the mechanism of flexible leadership ability (FLA) on digital transformation willingness (DTW). This study aims to explore the influence mechanism of FLA on DTW based on the ability-behavior-purpose logical framework. Survey data is collected from 509 large and medium-sized manufacturing enterprises in China, and multiple regression and PROCESS Macro methods are used for hypothesis testing. This study mainly discusses the impact of FLA on DTW, as well as the mediating role of innovation commitment (IC) and the moderating role of environmental dynamics (ED). Results show that FLA promotes DTW directly (β = 0.574, p<0.001) and indirectly, that is, through IC (the main effect decreased from (β = 0.574, p<0.001) to (β = 0.40, p<0.001). Additionally, the moderating role of ED affects the direct path of FLA on DTW (β = 0.167, p<0.001) as well as the two indirect paths (β = 0.196, p<0.001; β = 0.104, p<0.01). The findings contribute to the advancement of flexible leadership theory, and provide practical advice for enterprises on how to implement digital transformation. [ABSTRACT FROM AUTHOR]

Covid-19 has impacted the U.S. economy and business organizations in multiple ways, yet its influence on company fundamentals and risk structures have not been fully elucidated. In this paper, we apply LDA, a mainstream topic model, to analyze the risk factor section from SEC filings (10-K and 10-Q), and describe risk structure change over the past two years. The results show that Covid-19 has transformed the risk structures U.S. companies face in the short run, exerting excessive stress on international interactions, operations, and supply chains. However, this shock has been waning since the second quarter of 2020. Our model shows that risk structure change (measured by topic distribution) from Covid-19 is a significant predictor of lower performance, but smaller companies tend to be stricken harder. [ABSTRACT FROM AUTHOR]

In this paper, complex network theory is used to make time-series analysis of key indicators of governance structure and financing data. We analyze scientific listed companies’ governance data from 2010 to 2014 and divide them into groups in accordance with the similarity they share. Then we select sample companies to analyze their financing data and explore the influence of governance structure on financing decision and the financing preference they display. This paper reviews relevant laws and regulations of financing from the perspective of law and economics, then proposes reasonable suggestions to consummate the law for the purpose of regulating listed companies’ financing. The research provides a reference for making qualitative analysis on companies’ financing. [ABSTRACT FROM AUTHOR]

Germany is among the largest countries in the world in terms of total GDP, owing largely to rapid industrialization and expansion of economic activities into several sectors. This paper contributes to the literature on German economic development by investigating the evolution of industry diversification in Germany; particularly focusing on the recent concepts of related (RV) and unrelated variety (UV) in West German regions. It also identifies the statistical and economic determinants of variation in variety over time. Among several industry structure measures; RV is the only measure that reveals a pronounced increasing trend. Since RV is composed of two parts: 1) entropy at five-digit within a two-digit classification, and 2) shares of two-digit sectors in total output, we examined which of the two components dominate. Our findings suggest that the entropy component within two-digit sectoral shares of the RV index is more dominant than the two-digit sectoral shares themselves. We further examined entries and exits of the firms among regions with top and bottom rankings in RV. Findings suggest that both the top and bottom regions experienced an increase in the total number of industries, however, exits were much less pronounced in the bottom regions. It suggests that an increase in variety among top regions is the result of the creative destruction type effect where new industries force inefficient old industries to leave the region. Finally, analysis shows support for the inverse u-shaped relationship between development and diversification. [ABSTRACT FROM AUTHOR]

Purpose: The primary aim of this paper is to conduct a thorough and systematic review of the empirical and practitioner research on executive, leadership and business coaching to assess the current empirical evidence for the effectiveness of coaching and the mechanisms underlying it. Background: Organisations are increasingly using business coaching as an intervention to improve the productivity and performance of their senior personnel. A consequence of this increased application is the demand for empirical data to understand the process by which it operates and its demonstrable efficacy in achieving pre-set goals. Method: This paper is a systematic review of the academic and practitioner literature pertaining to the effectiveness of business and executive coaching as a developmental intervention for organisations. It focuses on published articles, conference papers and theses that cover business, leadership or executive coaching within organisations over the last 10 years. Conclusions: The main findings show that coaching is an effective tool that benefits organisations and a number of underlying facets contribute to this effectiveness. However, there is deficiency and scope for further investigation in key aspects of the academic research and we identify several areas that need further research and practitioner attention. ​ [ABSTRACT FROM AUTHOR]

In this paper we use a panel of manufacturing firms in Spain to examine the extent to which they use internal and external sources of information (customers, suppliers, competitors, consultants and universities) to generate product and process innovation. Our results show that, although internal sources are influential, external sources of information are key to achieve innovation performance. These results are in line with the open innovation literature because they show that firms that are opening up their innovation process and that use different information sources have a greater capacity to generate innovations. We also find that the importance of external sources of information varies depending on the type of innovation (product or process) considered. To generate process innovation, firms mainly rely on suppliers while, to generate product innovation, the main contribution is from customers. The potential simultaneity between product and process innovation is also taken into consideration. We find that the generation of both types of innovation is not independent. [ABSTRACT FROM AUTHOR]

With globalization, the cases of Chinese enterprises' cross-border mergers and acquisitions (M&A) are increasing rapidly. The institutional environment of the host country has become an important factor influencing M&A performance, which has a profound impact on the success or failure of cross-border M&A. Based on this, for our study, we selected cases of cross-border M&A of listed companies in China from 2007 to 2018 as research samples to empirically test the impact of the host country's governance capacity on the cross-border M&A performance of acquirers. It was found that the host country's governance capacity has a negative effect on the M&A performance in the short term, but in the long term, it can effectively improve the cross-border M&A performance of acquirers. At the same time, specific to the relationship between the governmental governance capacity of six different dimensions and long-term M&A performance, the government effectiveness, regulation quality, and rule of law have the most significant promotional effect on long-term M&A performance. This implies that acquirers should focus on the long-term impact of governmental governance capacity on M&A, and consciously lean toward countries with strong governance capacity in order to obtain long-term value growth when arranging overseas M&A activities. The conclusion of this paper provides a reliable basis on which for companies to achieve sustainable growth in complex economic activities. [ABSTRACT FROM AUTHOR]