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Existing studies have explored the impact of venture capital shareholding on the GEM-listed companies before and after listing from multiple perspectives. However, there has been limited research on the influence of venture capital shareholding on these companies' mergers and acquisitions(M&A) activities and performance. Additionally, two conflicting research findings have been presented in limited relevant studies. In order to clarify the mechanism by which venture capital shareholding affects M&A activities and performance of GEM-listed companies and verify existing research conclusions, this paper takes 468 M&A events completed by the acquirer of China's GEM-listed companies between 2014 and 2016 as samples to explore venture capital shareholding's effects on the M&A performance of GEM-listed enterprises. The empirical findings demonstrate that GEM-listed enterprises with venture capital shareholding perform significantly better in terms of short-term and long-term M&A performance than those without; with the increase in venture capital shareholding ratio, the short-term M&A performance of GEM-listed enterprises has remarkably improved, but the long-term M&A performance does not show obvious correlation; joint investment of venture capital can significantly improve the short-term M&A performance of GEM-listed enterprises, but it has no substantial influence on long-term M&A performance. Based on further analysis of the empirical study, it is concluded that the common one-share ownership structure of GEM-listed enterprises is not conducive to the play of the monitoring function of venture capital, and the insufficient incentives and free-riding thinking also weaken the motivation and input of some venture capital shareholders to provide value-added services. This study systematically elucidates the mechanism and impact of venture capital shareholding on the M&A performance of GEM-listed companies, addressing the shortcomings in existing research. It is conducive for GEM-listed companies to gain a rational understanding and effectively leverage the active role of venture capital shareholders in M&A activities. [ABSTRACT FROM AUTHOR]

Nowadays, the international situation is severe and complex, and the structural issues within the Chinese economy are prominent. Consequently, the financial risks faced by Chinese listed companies continue to escalate. Hence, it is of great practical significance to furnish effective early warnings for financial crises in listed companies. In this paper, we first employ web crawler technology and natural language processing technology to assess four text-linguistic features in the Management Discussion and Analysis (MD&A) section of the annual financial reports of listed companies in China from 2011 to 2020. These features are text tone, forward-looking, readability and similarity. Subsequently, we combine these features with traditional financial indicators and explore thirteen mainstream machine learning models to comparatively analyze their effectiveness in predicting financial crises in listed companies. The empirical findings of this research reveal that MD&A text readability and similarity indicators contribute valuable incremental information to prediction models, whereas text tone and forward-looking indicators exhibit the opposite effect. The latter two indicators can be manipulated more effortlessly by management, as this study's empirical findings indicate no evidence of their contributions in incremental informational value. In fact, the forward-looking indicator even introduces additional noise to the prediction. Finally, by comparing the early warning effects of thirteen machine learning models, it is found that RF, Bagging, CatBoost, GBDT, XGBoost and LightGBM models maintain stable and accurate sample recognition ability. In general, this paper constructs a more effective financial crisis early warning model by exploring the MD&A text-linguistic feature indicators, thereby offering a fresh research perspective for further investigations in this field. [ABSTRACT FROM AUTHOR]

This study aims to investigate green finance's impact on the synergy between ESG and green innovation (ESGGI) performance and examine the potential influence played by stakeholders' green concerns on this impact. Hence, we calculated the synergy of ESGGI performance based on the entropy method and the coupled coordination degree model and conducted regression analyses on the data of 1143 Chinese companies from 2012 to 2020. The results reveal a remarkable inverted U-shaped relationship between green finance and the synergy of ESGGI performance. Additionally, the green concerns of the government and the media can efficiently moderate green finance's impact on the synergy of ESGGI performance. Further tests show that green finance's impact on the synergy of ESGGI performance of SOEs, HPEs, and HTEs is more significant. This paper demonstrates an association between green finance and the synergy of ESGGI performance, which yields new insights for companies to implement green transformation and sustainable development. [ABSTRACT FROM AUTHOR]

This paper summarizes the transmission chain of "digital finance-financing constraint-firm innovation" at the theoretical and practical levels, incorporates digital finance into the empirical analysis framework of firm innovation, selects the data of Chinese GEM(Growth Enterprise Market)-listed companies from 2011 to 2020, and matches the data of the digital inclusive finance index. The paper empirically examines the incentive effect and impact mechanism of digital finance on SME innovation through the two-way fixed-effects model and mediated-effects model by matching the data of China GEM-listed companies from 2011 to 2020 with the digital financial inclusion index data. The findings show that the digital development and promotion of digital finance play a significantly positive impact in helping SMEs innovate and stimulate innovation. The effect is realized by alleviating corporate financing constraints. Further, digital finance has different incentive effects on enterprises with varying rights of property nature, as well as on other regions. [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]

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]

Government (especially local government) plays an important role in China's economic growth, the government is made up of officials, corporates are participants and the driving force of market economy, therefore, ignoring officials may not be able to directly explain the mechanism of corporate growth. This paper intends to discover how officials' promotion expectation may be beneficial for corporates—directly and/or indirectly via corporate strategic deviance—in terms of corporate growth. We conduct an empirical analysis of Chinese listed companies to test these arguments, the results show that officials' promotion expectation has a significantly positive impact on corporate growth; corporate strategic deviance has a mediating effect on the relationship between officials' promotion expectation and corporate growth; compared with non-state-owned enterprises, corporate strategic deviance has less influence on state-owned enterprises' growth. Our research generates a more comprehensive understanding of the political stakeholders-corporate growth relationship, provides direct evidence for the positive role of officials in corporate growth and expands the mediating research of corporate growth. [ABSTRACT FROM AUTHOR]

This paper aims to investigate the effect of political turnover on corporate ESG performance in China. By analyzing data from Chinese A-share-listed companies between 2010 and 2020, we have discovered that changes in the municipal party committee secretary or the mayor of the prefecture-level city where a firm is located have a detrimental effect on corporate ESG performance. Compared with the change of the party committee, the change of mayor has a more pronounced negative impact on ESG performance. The reason behind this negative effect is primarily attributed to policy uncertainty, which leads to a decrease in governmental subsidies and an increase in ineffective under-investment by companies, consequently resulting in decreased corporate ESG performance. Furthermore, we have also observed that the adverse influence of political turnover on corporate ESG performance is relatively mitigated in SOEs, politically connected firms, and tertiary industries. These findings contribute to a deeper understanding of the relationship between political uncertainty and corporate behavior, particularly in emerging markets. [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]

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]

Corporate charitable donations under different motivations will have different effects on innovation investment through different action paths, which provides a new perspective to solve the inconsistency of existing research results. Based on the resource-dependent and principal-agent theories, this paper compares and discusses the relationship between charitable donations and innovation investment under different motivations. Using 2008 ~2019 relevant data of listed companies as research samples, a mixed regression model is established for the hypothesis test, and further examines the state-ownership of its moderating role. The results show that the altruistic motivation-oriented corporate donations have a significant inverted u-shaped effect on innovation investment. The tool motivation-oriented corporate donations have a significant U-shaped effect on innovation investment. Moreover, it is further found that for ST (Special Treatment) corporates with the risk of delisting in the tool motivation-oriented charitable donations type, the corporate charitable donations have a significant negative effect on innovation investment. State-ownership can enhance the inverted U-shaped relationship between altruistic motivation-oriented corporate donations and innovation investment but weaken the U-shaped relationship between tool motivation-oriented corporate donations and innovation investment. [ABSTRACT FROM AUTHOR]

The efficiency of resource allocation in technological innovation is a critical factor influencing the output level of technological innovation. By expanding and optimizing the Hsieh & Klenow (2009) framework for analyzing the efficiency of resource allocation and relaxing the assumption of constant returns to scale, this study utilizes sample data from Chinese listed companies from 2007 to 2019 to measure and analyze the resource allocation efficiency level in China's technological innovation. The findings indicate that in the process of technological innovation, companies face heterogeneous resource usage costs, leading to a deviation from the optimal resource allocation state, with evident issues of resource misallocation. The loss of efficiency in technological innovation output due to resource misallocation is significant, and addressing this issue can substantially enhance the level of technological innovation output. The misallocation of research and development capital resources is more severe than that of research and development personnel, resulting in greater efficiency losses in technological innovation output. Government subsidies are identified as a significant factor affecting resource allocation in technological innovation. Addressing the issue of resource misallocation, accelerating the market-oriented reforms of technological innovation resource allocation, and optimizing the government subsidy screening mechanism are crucial for improving the efficiency of resource allocation in technological innovation. [ABSTRACT FROM AUTHOR]

Culture is one of the crucial elements of technological innovation. The existing studies hold that Confucian culture is conducive to the technological innovation of Chinese Listed Companies. However, Chinese family enterprises with relatively profound Confucianism encounter the bottleneck of weak innovation. This makes people wonder whether Confucian culture is conducive to the technological innovation of family enterprises. To solve this mystery, we investigated the effects of Chinese Confucianism on technological innovation in Chinese family enterprises. We found that family entrepreneur's entrepreneurship had worse innovation performance under the influence of Confucian culture. The results are robust to different measures of innovation and are still valid when controlling for the potential endogeneity between Confucian culture and technological innovation. This study provides a more fine-grained perspectives about Chinese innovation culture. [ABSTRACT FROM AUTHOR]

The effects of social networks on the relationship between internationalization and firm performance have been well documented in the international literature, and two dimensions of social networks have also been identified: business ties and political ties. However, few efforts have been made to examine whether there are different mechanisms of business ties and political ties. Based on social network theory and boundary spanning theory, we build a model of a dual mechanism of social networks, and the business ties and political ties of social networks that correspond with information processing and the external representation of boundary spanning theory. Using the data of Chinese listed companies in 2005–2013 and 2013–2017 to test the model, the results indicate that (1) in the relationship between internationalization and firm performance, the role of social networks has a dual mechanism. (2) Business ties play a mediating role in the relationship between internationalization and firm performance. Business ties are conducive to a company's information acquisition and knowledge sharing and play the role of information processing. (3) Political ties play a U-shaped moderating role in the relationship between internationalization and firm performance and assume the role of external representation. [ABSTRACT FROM AUTHOR]

In an uncertain and risky business environment, the decision for corporate venture capital (CVC) often requires courage and determination. This article empirically examines the relationship between social trust and corporate venture capital based on CVC data from Chinese companies spanning from 2006 to 2018. The findings reveal that social trust significantly positively influences a company's willingness and scale of involvement in venture capital. Further analysis highlights the variations in social trust effects under diverse governance environments, particularly in non-state-owned firms and firms with separate CEO and chairman roles. Meanwhile, in regions characterized by a more developed market environment and a robust legal framework, social trust demonstrates a more pronounced motivating effect. Moreover, social trust fosters innovation within CVC deals. Focused on emerging markets, this research delves into the significance of informal institutions in incentivizing corporate innovation and venture capital, offering a fresh perspective on the driving forces behind CVC. [ABSTRACT FROM AUTHOR]

Share repurchase is not only an important financial policy of the company, but also a financial policy with a very wide range of influence. A scientific and reasonable share repurchase policy has a significant financial effect in terms of an equity structure optimization, capital structure adjustment, cash holding control, and even management compensation system design. The long-standing share repurchase in the U.K. and U.S. companies and the recent practice of share repurchase by Chinese listed companies imply an important financial proposition: share repurchase is a high-quality financial policy that, when properly applied, will help reduce the cost of capital. The data in this study show that share repurchases can reduce the level of firms' cost of capital and play an important role in enhancing their competitiveness. This study also finds that Chinese listed companies, when formulating and implementing share repurchase programs, do not subjectively view share repurchases as a policy tool to adjust cash holdings and capital structure. In addition, they do not view share repurchases as an alternative to cash dividends but use equity incentives for management as the main intention for share repurchases. This decision-making concept is not conducive to the rational use of share repurchase policies in the long run and should be a cause for concern in the business community. Finally, the leverage and the cash holding path are the main motives affecting share repurchases and are the important fundamental mechanisms in this study, while the mediating mechanism test finds that share repurchases mainly reduce the cost of capital through two information perspectives of analyst following and stock liquidity. The heterogeneity analysis shows that the role of share repurchases in reducing the cost of capital is more obvious in enterprises with fierce product market competition, high institutional investor shareholding. [ABSTRACT FROM AUTHOR]

Textual analysis and the Entropy-TOPSIS method are used in this research to create a measure of corporate environmental protection, and multiple regressions are used to find out how digitalization affects corporate environmental protection. The research sets up a theoretical framework for how corporate digitalization affects environmental protection and looks into how external financing constraints and an organization's own financial position play a role in the middle. The research then looks at how outside factors like the business environment of the market and the level of competition in the industry affect the relationship. Using a threshold regression approach, the research also examines the change in the impact of digitalization on environmental protection after investor sentiment crosses the threshold from the distinct perspective of investor sentiment. Our research provides theoretical support for environmental protection by corporations and government policy direction. [ABSTRACT FROM AUTHOR]

Based on empirical analysis of Chinese listed companies from 2010 to 2018, we demonstrate that enterprise digital transformation has a significant impact on improving capacity utilization. Digital transformation is a significant driving force behind enterprise-specific production and innovation. Furthermore, enterprise innovation and enterprise-specialized production play a mediating role in the impact of enterprise digital transformation on capacity utilization. Based on these baseline findings, heterogenous analysis reveals that the impact of digital transformation on capacity utilization is significant for firms with larger capital scales or poor governance and manufacturing abilities. However, it is less important for enterprises with small- and medium-sized capital scales or with more standardized governance, as well as non-manufacturing (service) enterprises. [ABSTRACT FROM AUTHOR]

Extraversion is the best and most consistent predictor of important leadership outcomes. However, there has been little exploration and examination of the mechanisms underlying the effects of extraverted leadership on performance. Drawing on distal-proximal motivational theory and situational strength theory, the present study proposes and examines a moderated mediation model that explains how leader extraversion affects team performance and how situational characteristics strengthen or constrain this relationship. Respondents were recruited through management team training courses run by the eight Chinese companies. We conducted two rounds of electronic questionnaire collection. The first round of data was collected during the training session. Four weeks later, we collected the data through the training courses' WeChat groups. Data collected from 226 Chinese team leaders was analyzed using SPSS 26 and Mplus 7. We find that leader extraversion predicts team performance through a motivational mechanism operationalized as leader work engagement. We further find that goal clarity and process clarity play an important role in strengthening the positive effect of leader extraversion on leader work engagement as well as the motivational mechanism, providing an empirical explanation of how leader extraversion affects team performance through a motivational mechanism operationalized as leader work engagement. We also explore how two potential situational characteristics, operationalized as goal clarity and process clarity of leaders, affect the relationship between leader extraversion and leader work engagement as well as the motivational mechanism. Addionally, the findings suggest important practical implications for the organizations seeking to identify effective team leaders. [ABSTRACT FROM AUTHOR]

The question of whether appropriate decentralization can solve Corporate Social Responsibility (CSR) misplacement caused by Entrepreneurial Characteristics (EC) is an interesting ethical puzzle. Because corporate behavior depends on the decision-making choices of executives whose personality characteristics affect the choice tendency, power distribution undoubtedly becomes a big boost for most businesses to work out the adverse externality problems. Based on Upper Echelons Theory, this study developed a comparative impact model linking the effects of entrepreneurial intrinsic nature and experience characteristics on CSR performance. We tested the effective mechanism with the mediator role of the Corporate Power Distribution Index (CPDI) through a sample of listed Chinese companies from 2009 to 2017. The results provide that EC, such as female Gender, Degree, and Salary, have positive effects on CSR; CPDI plays a mediator role in the relationship between EC and CSR; and is moderated by Age, Academy, and Shares. The conclusion shows that EC can improve CSR performance to optimize CPDI to reduce corporate misplacement behavior. [ABSTRACT FROM AUTHOR]

Chinese e-commerce companies are in the ascendant into the overseas market, while still lack adequate academic attention. Adopting case study and public policy approaches, this article applies the symbiosis theory, based on the fundamentals of the development data of Chinese e-commerce companies in the Indonesia market, to construct an evaluation model and proposes a strategic orientation to reaching an embedded survival and further development. Through understanding the structural characteristics and developing status of different types of Chinese e-commerce companies going overseas, a detailed investigation to the Chinese e-commerce companies investing in Indonesia has been conducted. Findings show that the production capacity cooperation stage of the two countries has a trend of asymmetric symbiosis gradually developing towards symmetric symbiosis. To promote a continuous economic cooperation between China and Indonesia, this article proposes that the national-level collaboration policies, cross-border e-commerce value chain, as well as organizational-level coordination are the key sectors for reaching the vision of symmetric symbiosis between the two countries. Sectors in infrastructure, trade, capital, and people's mindset intimacy also contribute to construct a symbiosis mechanism for capacity cooperation between the two nations. [ABSTRACT FROM AUTHOR]

This research explores and explains the path of family enterprise venture capital equity financing from the perspective of endogenous family control rights. We adopted unbalanced panel data on Chinese listed companies from 2007 to 2018. Empirical research shows that there are significant differences in the impact of venture capital on the growth performance of family enterprises and non-family enterprises. Venture capital negatively affects the growth performance of family enterprises, while the negative impact of venture capital on family enterprises is not significant. In addition, family control positively moderates the negative impact of venture capital on family enterprise growth performance. [ABSTRACT FROM AUTHOR]

Based on the principal-agent theory and the financial management theory, this study analyzes the impact of fund shareholding on corporate insufficient R&D input, and explores the action mechanism of fund shareholding on corporate innovation activities. The results show that fund shareholding is helpful to inhibit the insufficient R&D input. Moreover, this inhibiting effect is mainly reflected in the case of higher risk of financial failure. The further analyses show that the higher level of marketization strengthens the inhibiting effect of fund shareholding on insufficient R&D input. Finally, it is suggested that fund companies should be encouraged to hold shares of listed companies, and the proposal power of fund companies in the shareholders' meeting should be appropriately enhanced. And it is suggested that the regulators continue to promote the development of securities investment funds, and guide fund shareholding to play an active role in external governance. Also, it is suggested that the regulators promote the process of regional marketization, to strengthen the positive effect of fund shareholding on innovation activities. [ABSTRACT FROM AUTHOR]