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The establishment of government investment funds serves as a crucial measure for governments at all levels to leverage their certification role and financial resources in attracting social capital to support enterprise development. This paper empirically examines the guiding certification effect and governance supervision effect of government investment funds on enterprise value enhancement, utilising panel data from listed companies and government investment fund investment event data spanning the period from 2011 to 2021. The research findings reveal that government investment funds significantly enhance the value of recipient enterprises. By leveraging their guidance and certification effects and governance supervision effects, these funds alleviate financing constraints, actively participate in corporate governance, and ultimately enhance corporate value. The impact of government investment funds is negatively moderated by the age and size of the enterprise, indicating that the "invest in early-stage and small businesses" investment strategy yields better results in promoting value enhancement. Furthermore, heterogeneity analysis demonstrates that government investment funds have a more pronounced impact on the value of non-heavily polluting industries, enterprises located in the eastern and southern regions of China, and non-state-owned enterprises. This article expands the research scope of government investment funds at the micro level, providing empirical evidence and theoretical support for optimising government investment funding policies and fostering the development of a modern capital market with distinctive Chinese characteristics. [ABSTRACT FROM AUTHOR]

This paper looks at the relationship between enterprise size and pollution abatement costs using firm-level datasets in China, where size-dependent distortions may exist in the distribution of enterprises of different sizes. We find that the pollution abatement costs decrease with enterprise size. Compared to the smallest size, the magnitudes of marginal decreases in pollution abatement costs per 1000 CNY of industrial output in the largest size are 3.29 CNY, 0.54 CNY and 2.60 CNY for gas, SO2 and dust, respectively. Moreover, we further explore the potential mechanisms for the decrease of pollution abatement costs from three perspectives: environmental protection-related investment, regulation intensity, and technological capability. Our findings suggest that the decrease in the intensity of environmental protection-related investment for large enterprises may be directly reduce the intensity of pollution abatement costs. Although large enterprises have low intensity of pollution abatement costs, this does not mean that they are subject to weaker environmental regulation. More importantly, we find that large enterprises may have more adoption of abatement technologies. For SO2 and dust, the pollutant removal efficiency of the largest enterprises is 4.92% and 1.82% higher than that of the smallest enterprises, respectively. Our results are robust to different specifications. These findings help us enact appropriate policies for enterprises based on their size, thereby improving the efficacy of pollution abatement and achieving the optimal level of pollution abatement for the entire society. [ABSTRACT FROM AUTHOR]

This study uses machine learning to investigate the effects of firm and CEO characteristics on stock price crash risk by collecting massive data on publicly listed firms in China. The results show that eXtreme Gradient Boosting (XGBoost) is the most effective model for predicting stock price crash risk, with relatively satisfactory performance. Meanwhile, the SHapley Additive exPlanations (SHAP) method is used to interpret the importance of features. The results show that the average weekly return of a firm over a year (RET) contributes the most and is negatively associated with crash risk, followed by Sigma, IPO age, and firm size. We also found that, among CEO characteristics, CEO pay contributes substantially to crash risk at the firm level. Our findings have important implications for research into the impact of firm and CEO characteristics on stock price crash risk and provide a novel way for investors to plan their investment decisions and risk-taking behavior rationally. [ABSTRACT FROM AUTHOR]

We know that, through lobbying and contributions, organizations systematically seek to influence political outcomes in liberal democracies. But what role do organizations play in an authoritarian regime's strategy for remaining in power? We argue that in order to maintain stability and consolidate control, an authoritarian regime must actively work to preempt dissent and the emergence of oppositional challengers. When potential challengers are unknown ex ante, the best guess is that they may rise from the ranks of those who run economically powerful organizations. Ability to control these organizations then minimizes the risk of instability. One way in which the regime accomplishes this control is through pro-forma cooptation—the process by which organizational leaders are assigned to positions with nominal authority in the government, thus ensuring their allegiance. We develop a theory predicting which organizations will be targeted for cooptation and posit that absolute and relative size and industry context are the key determinants. Empirical analyses of reappointment to congress of senior business executives in China offer support for the theory. The findings also offer a way to think of cooptation that is different from the conventional view that it drives adaptation (because power sharing widens representation and vested interests). By contrast, pro-forma cooptation of prominent organizations under authoritarian rule reifies the regime's dominance and solidifies its control, thus promoting inertia through the reproducibility of hierarchy in the social structure. [ABSTRACT FROM AUTHOR]

In recent years, disasters caused by climate change have brought marked losses to individual economic agents. To cope with fluctuating climate risks, climate policies have witnessed frequent adjustments worldwide, resulting in heightening uncertainty on climate policies that have become an important factor affecting business operations. This paper uses a fixed-effects model to study the role of climate policy uncertainty on the financialization of China's A-share listed enterprises. Our results find that a rise in climate policy uncertainty has a dampening effect on corporate financialization, while energy-intensive enterprises are most affected. Although climate policy uncertainty negatively impacts the size of enterprises' financial assets, the impact varies for different types of financial assets. We recommend that the government should maintain a robust climate policy to prevent frequent policy changes from harming company operations. This paper fills the gap by investigating the relationship between climate policy and corporate financialization. Under the backdrop of a rising climate policy uncertainty, our findings possess important implications for the improvement in enterprises' business strategies and policy effectiveness against global climate change. [ABSTRACT FROM AUTHOR]

Firms adopt different green supply chain management (GSCM) practices at varying levels. Drawing on institutional field theory, this study aims to explore the heterogeneity in GSCM practice adoption considering different firm characteristics, including firm size, industry, and ownership. Secondary data from 394 firms operating in China show that four organizational groupings—brown, light brown, light green, and green—firms exist. Multinomial logistic regression results show that larger firms and firms in the electronics industry are more likely to be greener, indicating that firm size and industry play a strong role in discriminating GSCM practice adoption. Interestingly, no differences between domestic and foreign‐owned firms exist, implying that the gaps in institutional perspectives between Chinese domestic and non‐domestic ownership may be disappearing. This study provides practical implications for strategic benchmarking of GSCM practices. The results also have broader implications for firm operations within China and Chinese firms competing elsewhere. [ABSTRACT FROM AUTHOR]

While global supply chains provide firms with a buffer against local shocks, they expose firms to multiregional risks. The COVID‐19 pandemic and its differential impact on different regions in the world offer an opportunity to explore these effects. We investigate the multiregional supply chain risk by focusing on credit risk measured by abnormal credit default swaps (CDS) spreads and US–China supply chain networks. Our evidence shows that local risks propagate through global supply chains to other regions. Using a matched sample, we find that abnormal CDS spreads for firms with Chinese supply chain partners increase by 12% to 13% relative to the average raw CDS spreads due to supply chain disruptions during the economic shutdown in China, and the abnormal CDS spreads decrease by 9% to 13% relative to the average raw CDS spreads when the supply chain activities resume in China. We also find that having a more global customer base can mitigate the effects of local household demand shocks. Lastly, we discover that firm size, supply chain network centrality, cash holdings, inventory, strong credit ratings, capital redeployability, and the number of segments increase resilience to global supply chain shocks, while financial leverage, operational leverage, and market competition weaken supply chain resilience. [ABSTRACT FROM AUTHOR]

This study distinguishes between two dimensions of firm process innovation, namely, quantity and quality, and uses data from the World Bank's China Manufacturing Firm Survey to analyse the differential impact of Internet applications on the quantity and quality of process innovation and their mechanisms of action. Internet applications have a significant facilitating effect on the quantity and quality of process innovation. However, from the perspective of the average marginal effect, the facilitating effect of Internet applications on the quantity of process innovation is greater than that on the quality of process innovation. Further analysing firm size, industry, ownership, and regional heterogeneity shows that in terms of the quantity of process innovation, Internet applications have a greater impact on small- and medium-sized firms, labour-intensive firms, non-state-owned firms, and eastern firms. As for the quality of process innovation, Internet applications have a stronger promoting effect on large firms, technology-intensive firms, and state-owned firms. The mechanism test reveals that open innovation and informatisation capability play a mediating role in the influence of a firm's Internet applications on process innovation. This study provides micro-empirical evidence for firms' Internet applications to promote process innovation and policy insights into China's manufacturing transformation and upgrading. [ABSTRACT FROM AUTHOR]

Recently, sustainability practices have become a global requirement to attain the high-performance goals of the organizations and capture the focus of regulators and recent researchers. Therefore, the present article aim is to investigate the board diversity (percentage of women directors, percentage of non-executive directors and board member nationality) and firm size (logarithm of total assets) on the sustainability practices (expenditures on environmental sustainability) of the top ten registered firms in China. The researchers have adopted the secondary source of data collection and extracted the data from the financial statements of the adopted firms from 2005 to 2019. Additionally, the researchers used a fixed-effect model (FEM) and a robust standard error model to investigate the relationship between the two concepts. There were positive correlations between firm size (logarithmic total assets) and board diversity (percentage of women directors, percentage of non-executive directors, and board member nationality) and China's top ten registered firms' sustainability practises (expenditures on environmental sustainability). This research provides help to the policymakers while formulating strategies and policies related to the adoption of sustainability practices. [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]

This study examines the extent to which electricity shortage influences technical efficiency using data of 805 listed manufacturing companies in China from 2009 to 2020 collected from the CSMAR database. To achieve the objectives of this paper, first, a stochastic frontier analysis (SFA) is used to estimate the technical efficiency (TE) score of manufacturing companies. Subsequently, the TE score is used to evaluate the electricity shortage index and other factors that are postulated to affect enterprise productivity. Two estimation methods have been adopted including ordinary least squares (OLS), which is less robust to endogeneity and instrumental variable (IV) estimation, which turns out to be more robust to endogeneity in the data. The empirical results show that, under OLS estimation, electricity shortage has a significantly negative impact on the technical efficiency of the listed manufacturing companies. However, when IV regression is implemented to address endogeneity issues in the data, electricity shortages tend to have a significantly positive impact on the technical efficiency, underscoring the importance of capturing endogeneity in the data. Extending the baseline results, this study also finds that, while the size of an enterprise may have no bearing, state-owned companies are more likely to be negatively affected by electricity shortages compared to privately owned companies. These results have significant implications for industrial policy design in China in particular, and developing countries in general. Most importantly, the results of this study underscore the importance of policies and measures to promote a shift in the ownership structure towards the private sector. [ABSTRACT FROM AUTHOR]

The main objective of this paper is to study the impact of the Ambient Air Quality Standard (2012) on the green innovation of Chinese firms in polluting industries. The analysis features "leverage effect" of Porter Hypothesis imposed by environmental regulations and exploits exogenous variations caused by the promulgation of the new policy. Based on the exogenous variations, this paper uses the time varying PSM-DID method. The findings of this study suggest that the implementation of the new policy improves firms' green innovation. Increments in R&D investment and environmental protection investment are channels through which the new standard positively affects firms' green innovation. The cross-sectional heterogeneity analysis exhibits that the effect of this environmental regulation is stronger for firms with bigger size and lower financial constraints. The contribution and significance of this study are as follows: our study enriches understanding of the impact of environmental regulation on firms' green innovation by empirically confirming the influencing channels of the impact of environmental regulations on green innovation. In addition, this paper contributes to the firms' green innovation literature by empirically validating the role of corporate characteristics in moderating the effect of environmental regulations. [ABSTRACT FROM AUTHOR]

Purpose: Servitization has been used widely by manufacturing firms to secure strategic positions in industrial transformation. However, its impact on firms' market power remains to be investigated, especially in developing countries. This study aims to investigate servitization's impact on firms' market power, along with the moderating roles of research and development (R&D) intensity and firm size. Design/methodology/approach: Using the two-stage least squares with instrumental variables (2SLS-IV) method, the authors conduct an empirical analysis of servitization in China based on panel data for 1,797 publicly traded manufacturing firms during the period 2012–2018. Findings: The findings show that servitization helps increase a firm's market power. Furthermore, heterogeneity analysis suggests that embedded servitization increases a firm's market power, whereas hybrid servitization reduces it. The findings also indicate that this effect varies depending on critical firm conditions. Servitization's effect on firms' market power increases with R&D intensity but decreases with manufacturer expansion. Research limitations/implications: This study describes the positive effects of servitization on firms' market power in response to calls for research that will adopt a comprehensive business performance perspective on the servitization field. Practical implications: The findings provide guidance for what type of servitization manufacturing firms should choose and how it fits with their size and R&D capabilities. Originality/value: This pioneering empirical study uses a large longitudinal data set and the 2SLS-IV method to examine the effects of embedded servitization and hybrid servitization on firms' market power. The findings provide a new perspective on ongoing discussions of "desertification" and the "service paradox." [ABSTRACT FROM AUTHOR]

Purpose: Based on the extended resource-based view (ERBV), this paper aims to investigate the relationship between sustainable supply chain management (SSCM), dynamic capabilities (DCs) and enterprise economic performance (EEP). Both the direct effects of SSCM on economic performance and the mediation effect of DCs are investigated. This empirical study also examines the moderating role of firm size. Design/methodology/approach: This study applies hierarchical regression analyses to test our hypotheses, and then the mediation test was performed using the macro PROCESS. Data were collected from 178 Chinese manufacturing firms. Findings: The findings show that SSCM practices significantly and positively influence both economic performance and DCs. The results indicate that DCs partially mediate the relationship between SSCM practices and EEP. Moreover, firm size has a moderating effect on external SSCM practices that influence EEP, but the moderating effect was not found to be significant for the effects of internal SSCM practices on economic performance and SSCM practices on DCs. Practical implications: This study reveals insights into the potential benefits for large enterprises and SMEs related to the utilization of SSCM practices in China and puts forward differentiated suggestions for SSCM practices in large enterprises and SMEs. Originality/value: Drawing on the ERBV, this study provides a deeper perspective on the relationship between SSCM and EEP by regarding DCs as a mediating variable and firm size as a moderating variable. [ABSTRACT FROM AUTHOR]

The effects of government bailouts have been extensively examined in the literature. This paper is one of the first to empirically examine the bailout funds established in China in 2018, which aimed to mitigate firms' liquidity squeeze risk caused by share pledges. Utilising a hand‐collected dataset of government bailout funds, this paper finds that stock prices increased when government introduced the bailout fund plan, especially for non‐state‐owned enterprises (SOEs) and firms with small size and share pledges. Long‐term performance of bailed out firms increased as well. Overall, our results provide new evidence that government bailouts have positive effects on financial markets. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) technology spillovers play an increasingly important role in a host country's development. Evaluating the positive effect of FDI inflows on green innovation is essential for correct city design. Based on the panel data of 262 cities in China from 2004 to 2018, we first analyzed the impact of FDI technology spillovers on green innovation in Chinese cities and then tested the threshold effect in four absorptive capacity factors: environmental regulation, economic growth, human capital, and industry size. Finally, we compared the time and space of two types of cities crossing the threshold from the perspective of innovative and non-innovative cities. The results show that FDI can significantly promote green innovation in Chinese cities and the promoting effect of FDI on green innovation has nonlinear characteristics, namely, such effects only make sense when absorptive capacity is above the threshold points. Additionally, among the four absorptive capacity factors, the development degrees of innovative cities are ahead of non-innovative cities; in particular, there is a significant difference between them in terms of economic growth. Local governments should develop reasonable policy combination tools according to the absorptive capacity characteristics of different cities to effectively promote the technology spillover effect of FDI and achieve coordinated ecological and economic development. [ABSTRACT FROM AUTHOR]

Digital transformation (DT) has been a key way for pharmaceutical companies to enhance innovation and R&D capabilities, improve product quality, reduce costs, and create competitive advantages. The external environment factors and the internal conditions' factors are the main factors affecting the DT of pharmaceutical companies. This research aimed to probe the effects of the external environment factors, the internal conditions' factors, firm size, and control variables on the DT of pharmaceutical companies based on synergetics. Purposive sampling and snowball sampling were used in this research. In addition, this research collected 395 valid data from Chinese pharmaceutical companies through online questionnaires. This research used quantitative analysis, and SPSS and Amos software were applied to data processing analysis. The results of structural equation modelling (SEM) and regression analysis showed that the external environment factors and the internal conditions' factors had a significantly positive correlation with the DT of pharmaceutical companies, and the effects of the internal conditions on the DT of pharmaceutical companies were greater than that of the external environment. In addition, firm size positively moderated the relationship between the external environment, internal conditions, and the DT of pharmaceutical companies. The results of this research not only can provide theoretical reference for scholars but also put forward implementation suggestions of DT for Chinese pharmaceutical company managers. [ABSTRACT FROM AUTHOR]

From the perspective of innovation motivation, low-carbon innovation is divided into substantive low-carbon innovation and strategic low-carbon innovation. On this basis, this study empirically investigates the impact and mechanism of digital transformation on enterprise low-carbon innovation using data from China's A-share listed enterprises from 2005 to 2019. The results show that digital transformation promotes the overall level of enterprise low-carbon innovation, substantial low-carbon innovation, and strategic low-carbon innovation, with a more significant impact on strategic low-carbon innovation. For enterprises with large-scale, belonging to high-monopoly industries and located in high-marketization regions, the promotion of digital transformation is more significant and facilitates strategic low-carbon innovation more than substantive low-carbon innovation. Based on the internal capability perspective, enhancing management capability, R&D capability, and environmental information disclosure capability are three important channels of digital transformation affecting low-carbon innovation. • The impact of digital transformation on LCI is explored from innovation motivations. • Management, R&D and environmental information disclosure capabilities are channels. • Heterogeneity is analyzed from enterprise size, industry monopoly and regional marketization. [ABSTRACT FROM AUTHOR]

We investigate the relationship between functional subsidies, selective subsidies, and investment efficiency through meticulous compilation of information on government subsidies, and the implementation of an innovative categorization methodology based on the nature and timing of funds (ex-ante versus ex-post). Our findings suggest that the effects of subsidies exhibit asymmetry by alleviating underinvestment while exacerbating overinvestment, and functional subsidies exert a stronger influence compared to selective subsidies. Financial constraints are found to serve as the major mechanism, and firms with easier access to financing may not effectively utilize subsidies, while those facing severe financial constraints are less prone to misusing them. • We distinguish functional subsidies from selective subsidies through compilation of information on government subsidies. • Functional subsidies exert a stronger influence on investment efficiency compared to selective subsidies. • The effect of subsidies exhibit asymmetry by alleviating underinvestment while exacerbating overinvestment. • State ownership, firm size and dividend payments lead to heterogeneity in the effects of subsidies. • Corporate financial constraints serve as one of the mechanisms. [ABSTRACT FROM AUTHOR]

The sustainable development of the digital economy has attracted wide attention. To explore how to improve the operational performance of China's digital firms, this paper conducts an influence mechanism model to test the nonlinear effect, heterogeneity effects, and mediation effects using a panel data of China's digital firms from 2008 to 2017. The empirical results indicate that R&D subsidies have an inverted U-shaped effect on operational performance, and these results are still valid after a series of robustness tests. In addition, we find that R&D subsidies have a heterogeneous effect on operational performance in terms of region, company size, governance structure, and executive education background. Moreover, regarding the influence mechanism, R&D subsidies improve operational performance by improving innovation efficiency. This paper proposes some policy implications to improve the operational performance of China's digital firms. [ABSTRACT FROM AUTHOR]

Many cities in China have built an advanced public transportation system (APTS) in recent years. These systems cannot carry out automated dispatches but rely on the dispatcher to ensure normal operations. Based on the theory of fuzzy comprehensive evaluation, this study created a hierarchical evaluation model to evaluate the work level of the dispatcher. Firstly, a hierarchical evaluation system was established based on the data of line complexity and dispatch workload provided by the APTS. Secondly, we assigned the weight of the evaluating indicator by combing an expert scoring method and the entropy weight method. We then transformed the quantitative data into qualitative evaluation data with a cloud model. Through a comparison with the standard cloud, the work level of an APTS dispatcher can be defined. The evaluation results for 12 cities in China showed that there was no obvious connection between the working level and bus company size, but the work level was always higher in large cities. We finally obtained the standard range of the evaluation indicator through cluster analysis. This method can be used as a reference to evaluate the work level of dispatchers in other cities, and can reflect the correlation between the work level and dispatching system construction, population and city size. [ABSTRACT FROM AUTHOR]

This study focuses on exploring the relationship between chief executive officer (CEO) duality and firm performance. We focus on how the size and corporate social responsibility (CSR) of firms moderate this relationship. In terms of size, business organizations are of two types: small and large firms. This study uses datasets of listed Chinese business firms included in the China Stock Market and Accounting Research database. It employs a generalized method of moment's technique to explore the connection between CEO duality and the performance of Chinese business firms through double mediation effects. Our empirical analysis showed that CEO duality has a significant negative relationship with firm performance. We also explored the moderating effects of firm size (small and large) and CSR practices on the relationship between CEO duality and improved performance of Chinese firms. Large firms and CSR practices showed significant and positive moderating effects on the relationship between CEO duality and firm performance. Conversely, with CEO duality, small firms showed a negative moderating influence on firm performance. This inclusive model provides valuable insights into how the dual role of the CEO of a firm affected the performance of Chinese firms through the moderating role of CSR practices and firm size for better business performance. The study offers empirical and theoretical contributions to the corporate governance literature. This research framework might help researchers in designing robust strategies to evaluate the effects on firm performance. Researchers may gain helpful insights using this methodology. [ABSTRACT FROM AUTHOR]

Innovation efficiency is an important index to measure the innovation performance of high-tech enterprises. Numerous researches have been conducted on innovation efficiency at national, regional, and sectoral levels, while there are comparatively few studies on the innovation efficiency of high-tech small- and medium-sized enterprises (SMEs) from a micro perspective. Therefore, innovation efficiency of 251 high-tech SMEs listed in China from 2012 to 2015 is measured with the super-SBM model in this paper. The results suggest that the overall innovation efficiency is low but shows an upward trend. In addition, the antecedents of innovation efficiency are explored using the panel regression model and the conclusions are as follows: (1) government subsidies, ownership concentration, and market competition deter enterprise innovation efficiency, and the impact of ownership concentration is found to be the most significant; (2) firm size and asset-liability ratio bear positively on enterprise innovation efficiency, with the effect of asset-liability ratio being greater; (3) firm age has significantly positive effects on scale efficiency but not on innovation efficiency and pure technical efficiency. [ABSTRACT FROM AUTHOR]

Using China as the research setting, this paper investigates the relationship between economic policy uncertainty and corporate precautionary cash holdings. Empirical results show a U-shaped relation between economic policy uncertainty and corporate precautionary cash holdings. Empirical analysis, in terms of ownership structure, firm size, corporate competitiveness and geographical location, further shows that (i) the effects for economic policy uncertainty in both state-owned and non-state-owned enterprises are significant, but the effect is stronger for state-owned enterprises; (ii) such significant effect is also found more strongly in small and medium-sized enterprises and highly competitive enterprises; and (iii) the effects for eastern, central and western China are all statistically significant, but the effect is strongest for eastern China. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the role of learning orientation in building brand equity for B2B firms. The present research proposes that learning orientation contributes to the development of innovation and marketing capabilities and, in turn, leads to enhanced industrial brand equity. Furthermore, the moderating effect of firm size in these processes is investigated. Design/methodology/approach: The hypotheses are tested by administering a survey with a set of managers of manufacturing firms in China. Findings: Innovation capability and marketing capability serve as the mediators between learning orientation and industrial brand equity. The mediating path through innovation capability is stronger for small firms than for large firms. Research limitations/implications: Learning orientation provides a cultural base for B2B firms to cultivate brand equity. Measurement of industrial brand equity and contingency of its effect requires further investigation. Practical implications: To transform learning-oriented culture into brand equity, firms need to develop and manage innovation and marketing capabilities. The learning orientation–innovation capability route is more beneficial for small firms. Originality/value: While a majority of prior literature ignores the impact of organizational culture in driving industrial brand equity, the present research explores learning orientation as a key cultural antecedent of industrial brand equity. A more refined industrial-brand-equity-building mechanism from learning orientation to corporate capabilities and then to brand equity is proposed and tested. The mechanism varies with firm size. [ABSTRACT FROM AUTHOR]

This study develops a model grounded in the contingency theory (i.e., context-structure-performance) applicable to Chinese state-owned enterprises (SOE). Using data from a sample of 205 industrial SOEs, the study shows that SOE growth performance relative to the industry is positively predicted by formal control, inversely predicted by decentralization, and positively predicted by the interaction of the two. Customer product knowledge utilization, unrelated to growth performance relative to the industry, is positively predicted by formal control and the interaction of formal control with decentralization. Foreign induced industry competitiveness, technological turbulence, size, and production technology routineness are treated as context variables and modeled accordingly. [ABSTRACT FROM AUTHOR]

Abstract This study explores asymmetric effects of monetary policy on firm scale at different firm size levels. We find that Chinese firms respond to raising benchmark lending interest rates and deposit reserve requirements by decreasing their scales. Our quantile regression results also indicate that larger firms respond more strongly to both policy instruments by adjusting their scales to a greater degree than smaller firms. Moreover, SOEs react less strongly to policy changes than non-SOEs at all firm size distribution. The impact of monetary policy on firm scale is also stronger after commercial banks having greater leeway in setting interest rates. Highlights • Explore asymmetric effects of monetary policy on firm scale at different firm size levels. • Chinese firms respond to raising benchmark interest rates and deposit reserve ratios by decreasing their scales. • Larger firms respond more strongly to both policy instruments by adjusting their scales to a greater degree. • SOEs react less strongly to monetary policy changes than privately controlled listed firms at all firm size distribution. • The impact of monetary policy on firm scale is stronger when banks having greater leeway in setting interest rates. [ABSTRACT FROM AUTHOR]

This study tests the impact of carbon neutrality initiatives on shareholder value and explores how equity returns achieved as a result of carbon neutrality vary across operating environments. Based on 226 carbon neutrality announcements made between 2017 and 2021, we conducted an event study to estimate the impact of carbon neutrality initiatives on Chinese firms' shareholder value. Under the opportunity-motivation-ability (OMA) framework, we further analyzed the heterogeneous effects of distinctive firm characteristics (social rating and firm size), in which carbon neutrality announcements represented opportunity, social rating represented motivation, and firm size represented ability. We further demonstrated how the announcement characteristics and industry differences affected stock market responses. The results indicate that carbon neutrality initiatives have a significant average abnormal return of 0.99% on the announcement date and a positive long-term impact on shareholder value. This equity return is more pronounced for smaller firms with higher social ratings, and the stock market reacts less positively to firms that announce carbon neutrality initiatives in social responsibility reports. The stock market does not react strongly to manufacturing firms' carbon neutrality initiatives. The study provides some important insights toward the CSR-firm performance debate by providing a new measurement of CSR (i.e. carbon neutrality initiative) and examining the relation from an OMA perspective and looking into some contingency factors. [ABSTRACT FROM AUTHOR]

Construction industries have significant impacts on the economy, society and environment. To transform construction industry towards sustainability, construction enterprises' perceptions and performance on sustainability needs to be understood and evaluated, which has not be fully explored by existing studies. This paper holistically examines the Chinese construction enterprises’ attitude towards and performance on various aspects of sustainability (e.g. the economic, social and environmental aspects) in order to identify those aspects the firms perceive to be the most and least important and those aspects the firms perform best and worst on. The associations among the sustainability attitude, sustainability performance, and firm size are also explored. The findings show that quality management and customer service are perceived as the most important as well as the best-performed aspects by the firms while supporting community development is the least important and worst-performed aspect. Sustainability attitude is positively correlated with performance, and larger firms tend to have better sustainability performance than that of small ones. However, larger construction firms do not necessarily perceive sustainability more important. This study provides a useful reference for policy makers and researchers to understand how sustainability is perceived and implemented by the Chinese construction firms. [ABSTRACT FROM AUTHOR]

The size and number of firms in a region represent key characteristics of that regional economic ecosystem, but few studies have linked such characteristics with the stringency of local environmental regulation. In this study, we discuss the effects of local firm scale on environmental regulation and its mechanism, and the optimal strategic choices theoretically and empirically for environmental regulation in regions with different firm scale. We find that when government capacity is insufficient, regional environmental regulation will be relatively more stringent when dealing with fewer but larger firms because of the government scale effect. When government capacity is sufficient, firm size has no influence on environmental regulation. Our results are robust and offer insights for government decision makers to improve local environmental regulation efficiency. [ABSTRACT FROM AUTHOR]

Exploring the drivers of declining energy intensity is necessary in order to accelerate the transition to a low-carbon economy in China. To date, studies have typically adopted case analysis to link enterprise features and energy-saving performance. The impact of internal industrial configuration in terms of size and ownership structure on aggregate energy intensity remains to be examined. To fill this research gap, this paper tests the impact of the internal structure of industries on city-level energy intensity, by employing a unique panel dataset of 283 cities for the period 2005 to 2010. The Driscoll-Kraay method and instrumental variable are used to treat residual cross-sectional dependence and endogeneity, respectively. Results suggest that small-scale enterprises exerts a negative effect on energy intensity. A 1% increase in the output-value proportion of small-sized firms will lead to a decrease in total energy intensity of 0.067%. In contrast, the same change by medium enterprises will raise energy intensity by 0.031%. A negative and/or non-significant coefficient suggests that for most energy-intensive large and state-owned enterprises, China's 2006 top-down energy-saving regulation has been quite effective in targeting key energy-intensive enterprises in China. The findings reveal that state-owned enterprises (SOEs) can act as promoters of, rather than barriers to, low-carbon policy implementation in China. Given that the effectiveness of energy-saving regulation will be undermined as a result of diluted regulatory strength in each enterprise, market-oriented energy price reform is proposed as a fundamental driver for guaranteeing a continual decline in energy intensity. [ABSTRACT FROM AUTHOR]

The increasingly complex environmental governance causes the authorities responsible for implementing environmental policies fragmented. Whether environmental policy integration could improve governance effectiveness remains unclear. This paper investigates the short-term impact of China's One Permit Management (OPM), aiming at integrating existing environmental regulations, on environmental performance. Using unique high-frequency facility-level data and the difference-in-differences-in-differences (DDD) approach, we find that noncompliant facilities reduced emissions after being issued the discharge permit. Specifically, COD, NH 3 -N, SO 2 and NO X declined by 7.75%, 29.88%, 18.21%, and 11.04%, respectively. In addition, the analysis of the heterogeneity of firm size suggests that large firms that interact more frequently with regulators are less affected and the analysis of heterogeneity in the capacity of regions to implement policy integration shows that the effect of policy integration is more significant in eastern regions. The emission reductions of COD, NH 3 -N, SO 2 and NO X achieved by the issuance of pollution permits accounted for 7.72%, 14.66%, 11.31% and 19.89% of the five-year target emission reductions, respectively. Given the prevalence of policy fragmentation, policymakers need to focus not only on how to set goals, but also on how to achieve those goals in a coordinated and coherent manner. • China's one permit management reform is a successful case of policy integration in response to policy fragmentation. • One permit management reform improves the environmental performance of treated polluters. • Large firms that interact more frequently with regulators are less affected by policy integration. • The effect of policy integration is more significant in eastern regions. • China's one permit management reform achieves 7.72%–19.89% of the five-year target emission reductions for major pollutants. [ABSTRACT FROM AUTHOR]

This paper studies the size distribution of exporting and non-exporting firms in a panel of Chinese provinces. The power law exponents of exporting firms are significantly less than those of non-exporting firms. The average power law exponents fell from 0.74 in 1998 to 0.64 in 2007 for exporting firms, and from 1.03 in 1998 to 0.83 in 2007 for non-exporting firms. Further analysis showed that credit constraints have a significant negative effect on the exponents of the size distribution of exporting firms, suggesting that smaller firms are more credit-constrained than larger firms. [ABSTRACT FROM AUTHOR]

Due to heavy energy consumption and low technical efficiency, China's iron and steel industry is trapped in the dilemma "large but not strong". This situation not only exerts enormous pressure on energy security but also on increased carbon emission and environmental pollution. The contribution of this study is to calculate the energy and environment efficiency of China's iron and steel industry and to analyze the factors affecting this efficiency. An index of energy and environment efficiency is introduced based on Directional Slacks-based Distance Measure Model. This index is adopted to measure the energy and environment efficiency of China's iron and steel industry using 2,382 firm observations during 2001 to 2005. In addition, Hierarchy Linear Model (HLM) is applied to analyze the factors which can influence the efficiency with both firm-level and province-level data. The conclusions are as follows: The energy and environment efficiency of China's iron and steel industry did not have a significant change during the research period. A firm's age, size, ownership, product category and the economy of its province have significant influence on its energy and environment efficiency. [ABSTRACT FROM AUTHOR]

This paper investigates the roles and significance of firms of various sizes in economic growth in China. This paper finds that the small firms have been the engine of growth in China, as increasing their share has been positively associated with economic growth. In contrast, we find that increasing the share as well as the number of big businesses have a significant and negative effect on economic growth, and that increasing the share of the medium-sized firms have negative or insignificant effect on economic growth in China. Most interestingly we find that the positive contribution of small firms and their increasing shares are largely owing to the expansion of the average size of them, rather than the increase in their absolute numbers of which the impact on growth is insignificant. [ABSTRACT FROM AUTHOR]

Corporate Social Responsibility ("CSR"), the responsibility of a corporation for the impacts of its decisions on society and the environment, originated as a term in the 1950's (Carroll 1999). However, ISO 26000 "Guidance on Social Responsibility" published in November 2010, redefines "Social Responsibility" ("SR") broadly, by reference to SR principles, core subjects and issues. The Hong Kong Construction Industry ("HKCI") sector is critical to Hong Kong's economy, accounting for 5.6% of the GDP and 9.2% of employment in 1999 (Tang 2001). In 2011, the gross value of construction work amounted to HK$215.0 billion and contributed HK$65.4 billion (HKSARCSD 2013a) to the total GDP of HK$1,823.2 billion (HKTDC 2013; HKGov 2013). Provisional quarterly data for 2012 indicates an increase in the gross value of construction works for 2012 of 25% to be now in excess of HK$250 billion (HKSARCSD 2013b). The aim of this research is to investigate which ISO 26000 SR principles, core subjects and issues are relevant to HKCI firms. The principle findings are that: the reported level of HKCI CSR activity relative to the seven core subject of ISO 26000 is a function of company size; many SME's consider that many of the ISO 26000 SR issues are irrelevant to them; but for the large construction contractors, with employee numbers greater than 200, the SR issues in ISO 26000, particularly those relating to the health and safety in the workplace and to the environment, are not only relevant but in many cases the corporate SR activities exceed legislated requirements. [ABSTRACT FROM AUTHOR]

The article presents an overview of results of a study on the effect of different modes of external finance according to the size of firms in China. The composition of co-funding and its impact on growth according to firm size is also examined. The econometric model used to examine the effect of informal versus formal finance is presented. It is found that the optimal choice for small firms is the combination of both formal and informal financing.

The article examines results of studies on formal and informal financing for firms in China and presents hypotheses based on the results. It is stated that these studies show conflicting evidence on informal finance, which may be caused by differences across the samples in firm characteristics. The first hypothesis focused on the heterogeneous impact of informal finance according to firm size. Other hypotheses include the link between co-funding and higher sales growth for small firms.

Using a new dataset of 1539 Chinese small and medium-sized enterprises this article investigates the firm-level determinants of capital structure and tests them against the predictions of financial theory. Firm size and profitability are both found to be related to leverage as posited by pecking-order theory. In contrast little support is found for the predicted relationship between asset structure and leverage. These findings are discussed in relationship to their Chinese cultural context. The managerial and policy implications of the research are then explored. [ABSTRACT FROM PUBLISHER]

Drawing on risk mitigation theory, this article examines whether the improvement of firms' social performance reduces debt financing costs (CDFs) in China, the world's largest emerging market. Employing both the ordinary least square (OLS) and the two-stage instrumental variable regression methods, we find that improved corporate social responsibility (CSR) reduces the CDF when firms' CSR investment is lower than an optimal level; however, this relationship is reversed after the CSR investment exceeds the optimal level. Firms with extremely low or extremely high CSR are subject to a higher CDF. The results also suggest that the optimal CSR level for small firms is higher than that for large firms. This study is the first to document a U-shaped relationship between CSR and CDF and also the first to investigate this relationship within an emerging market context. [ABSTRACT FROM AUTHOR]

We investigate trust relationships between senior business executives and their overseas partners. Drawing on the similarity-attraction paradigm, social categor- ization theory, and the distinction between cognition- and affect-based trust, we argue that executives trust their overseas partners differently, depending on the partners' cultural ethnicity. In a field survey of 1 08 Chinese senior executives, we found that these executives have higher affect-based trust in overseas partners of the same cultural ethnicity as themselves; cognition-based trust is associated with affect-based trust differently when overseas partners are of the same or different cuftural ethnicity. We also examine the role of relative firm size and age in shaping intra- and intercultural trust Relative firm size has a stronger negative effect on executives' cognition-based trust if their partners are of a different cultural ethnicity. Although firm age does not have a negative effect on executives' affect- based trust as hypothesized, we found firm age to be positively associated with affect-based trust for partners of the same cultural ethnicity. We discuss theoretical and practical implications of this pattern of inter- and intra-cultural trust on international business and networking (qucznxi) dynamics in China. [ABSTRACT FROM AUTHOR]

Many studies have examined CEO compensation in developed countries, where a long tradition of disclosure renders data readily available. In emerging economies, particularly in China, where market-based compensation is a relatively new phenomenon, there are few studies of CEO compensation. In addition, information on the use of non-cash compensation is almost absent. Building on the general literature on CEO compensation, and Chinese economic and management studies, this article singularly contributes to the extant literature by (1) examining the motivational determinants of CEO perk compensation, on the one hand, and (2) exploring the relative contribution of perks to performance. We anticipate that perks can serve two roles in China: (1) to provide incentives to deter managerial shirking, and (2) to facilitate work and improve production. We find that perks are positively associated with current and future returns on assets, supporting the view that some types of perks may improve firm profitability and/or that perks are paid as a bonus to reward performance. Our findings from stratified samples suggest that perks may incentivize managers, even after controlling for firm fundamentals, such as firm size, growth opportunity, and leverage. [ABSTRACT FROM AUTHOR]

• While research on international joint ventures (IJVs) has intensified over the last few decades, numerous reviewers have criticized the field for lack of accumulation. We use meta-analytic techniques to quantitatively synthesize and evaluate agency theory and the behavioral perspective in their ability to explain IJV performance variance. Overall, we find support for these theories but moderator analyses unveil important effects of artifactual variables, and point to a unique character of IJVs in China. • Based on meta-analyses of 165 effect sizes from 61 independent samples and a total of 26,927 IJVs, the results offer overall support for a hypothesized path model grounded in agency theory and the behavioral perspective. However, only 19 percent of the variance in IJV performance is accounted for, indicating a need to explore other underexplored variables. We do not find evidence that hierarchical control is associated with partner conflict. Closer examination shows that for IJVs in China such control lowers partner conflict, while for IJVs in other countries it amplifies partner conflict. The effects of partner conflict on IJV performance are less harmful for Chinese joint ventures than for joint ventures in other countries. Furthermore, while objective measures of cultural distance show a weak positive effect on IJV performance, subjective measures show a negative effect. [ABSTRACT FROM AUTHOR]

Allinson and Hayes (1996) in the reporting of a new measure, the Cognitive Style Index, made a plea for replication and extension of their work. Using a sample of over one thousand subjects the present study investigated the CSI's construct and concurrent validity. A maximum likelihood factor analysis obtained broadly similar results to those of Allinson and Hayes. No relationship was observed between the CSI and an alternative measure of style (the Cognitive Styles Analysis). It is argued that cognitive style is independent of gender but that style is related to job level (lower scores were associated with increased seniority). Some evidence was presented which suggests there may be differences in cognitive style between Hong Kong and UK small business owner managers. [ABSTRACT FROM AUTHOR]

Most examinations of business in China have focused on large state firms or international joint ventures. However, the most successful group of businesses in China are the township and village enterprises. Success in the China market requires that a business have a full understanding of the marketplace. This article helps both practitioners and academics by examining how township and village enterprises differ from other classes of businesses. We then examine the case of Kelon, one of the most successful of the township businesses in China. As the nation's largest refrigerator manufacturer, Kelon has developed resources that have shaped its success. By examining these resources, both domestic Chinese firms and international firms can learn to better compete in the Chinese marketplace. [ABSTRACT FROM AUTHOR]

In the context of the popular development of the low-carbon economy, the "high energy consumption, high pollution, and high emissions" of the manufacturing industry have resulted in unprecedented difficulties in the development of this industry. To achieve nationally determined contribution targets, China has formulated a series of low carbon development plans for heavy industry to reduce carbon emissions. Among these, low-carbon technological innovation has been used a new means for manufacturing enterprises to achieve sustainable development, which is highly valued by management practice. Taking Chinese manufacturing companies as an example, the present study investigates the mediating effect of green core competence on the relationship between low-carbon technological innovation and enterprise performance and evaluates the moderating impact of firm size on this relationship. In this study, 438 valid data points were empirically analyzed, and the results indicate that low-carbon technological innovation significantly and positively affects enterprise performance of manufacturing. Green core competence plays a mediating role in the positive effect of low-carbon technological innovation on enterprise performance. Firm size has a positive moderating effect on the relationship between low-carbon technological innovation and enterprise performance. Meanwhile, firm size also moderates the relationship between low-carbon technological innovation and green core competence. Namely, a larger firm size correlates with a more positive effect on the cultivation of green core capabilities from the low-carbon technological innovation of manufacturing companies and in stronger enterprise performance. Finally, this work provides constructive guidance for Chinese manufacturing companies on how to practice low-carbon production and achieve sustainable development. [Display omitted] • Low-carbon technological innovation promotes enterprise performance of Chinese manufacturing. • We examined the model using a large sample of Chinese manufacturers. • This relationship is partially mediated by green core competence, and moderated by firm size. • Firm size exerts a positive moderating effect on low-carbon technological innovation and green core competence. [ABSTRACT FROM AUTHOR]

In scientific journals published all over the world, the economic performance of firms with ISO 14001 certification is a highly controversial topic. This controversy is particularly evident in developing countries. With regard to this topic, we maintain a neutral position in this paper. Using the data of 63 firms from the Shenzhen and Shanghai Stock Exchanges in China during the period of 2003–2018, and employing the difference-in-difference method, we analyze the influence of ISO 14001 certification on firms' financial performance. We also examine the moderating effect of firm size and age, considering the time factor. In addition, we test the influence of ISO 14001 certification on exports, using China's provincial data from 2008 to 2018. The results indicate that ISO 14001 certification negatively affects the financial performance of firms; also, the negative effects decrease in line with the increase of certification time. Firm size and age are positively related to the relationship between ISO 14001 certification and a firm's financial performance. At the same time, ISO 14001 certification can effectively improve a firm's competitiveness in the international market. The study combines two opposing positions found in existing literature regarding the effectiveness of ISO 14001 certification. The results show that ISO 14001 certification will ultimately have a positive impact on China's economy, but that influence should be correctly evaluated in terms of the effect on small and medium-sized enterprises. Some suggestions for firm managers and the government are then discussed. [ABSTRACT FROM AUTHOR]

Supported by preferential policies and government funding, the technological innovation of China's photovoltaic industry has been improved greatly. As a capital-intensive practice, will innovation activities in China's photovoltaic industry be affected by the continuous decline of government subsidies in recent years? Therefore, it is essential to study the relationship between government subsidies and innovation performance of Chinese photovoltaic industry. However, there is less empirical research on this topic. In this context, this study aims to supplement existing studies by proposing a micro-level perspective to measure the innovation performance based on the data of Chinese listed photovoltaic companies from 2012 to 2016. Moreover, we assess the effects of government subsidies and other influencing factors on innovation performance. The findings reveal that, firstly, the average innovation efficiency of Chinese listed photovoltaic companies is over 0.9, which is relatively high. Secondly, government subsidies make a positive influence on innovation performance. Thirdly, financial leverage and ownership concentration have significant positive impacts, while firm size has a significant negative effect on the innovation efficiency of China's photovoltaic industry. The findings will serve as a reference for policy-making to promote further technological progress and sustainable development of China's photovoltaic industry. • This paper estimates the innovation performance of China's photovoltaic industry based on the micro perspective. • This paper conducts a comprehensive analysis by a two-stage DEA-Tobit model. • The overall innovation efficiency of Chinese photovoltaic enterprises is high relatively but still has progress potential. • Government subsidies make a positive influence on technological innovation efficiency of China's photovoltaic industry. • The findings will serve as a reference for policy-making of government and enterprises. [ABSTRACT FROM AUTHOR]

The article presents a conclusion on the study on the impact of formal and informal finance on firm growth in China. It suggests that informal finance is associated with a higher sales growth rate for small firms, and lower sales growth rate for large firms. Also, a complementary effect between formal and informal finance for small firms was identified. It also suggests that the combination of formal and informal finance may be an optimal choice for small firms.

Based on the strategy tripod perspective, this study intends to examine the independent and joint effects of state ownership and firm size on Chinese firms' choices between greenfield and acquisition, and between full and partial ownership. Using secondary data of a sample of 150 firms with 473 entries, we find that state ownership and firm size independently and jointly have impacts on entry mode choices. Our findings provide some support to the strategy tripod perspective, which treats institutions as independent variables and considers strategic choices as the outcome of the interactions between institutions and organizations. [ABSTRACT FROM AUTHOR]