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This study investigates whether the listed company’s social responsibility will impact investors and regulators after corporate frauds. Does the corporate social responsibility (CSR) performance bring about the “compensation” effect or the “reputation collapse” effect? Using the cumulative abnormal return to characterize the market reaction, our results based on the Chinese listed firms that have committed violations throughout 2010-2020 show that the announcement of violation enforcement will produce significantly negative market reaction, and the more serious the type of violation enforcement, the greater the negative market reaction. Further, we find that the corporate social responsibility (CSR) performance will not directly affect the market reaction of the announcement of punishment for violations, but it will increase the severity of the company’s punishment for violations, thus indirectly bringing more negative market reaction. Overall, our findings suggest that the listed company’s social responsibility (CSR) performance before violation cannot play a “compensation” effect to offset the negative impact caused by its violation, it may bring more serious administrative punishment to the company due to the “reputation avalanche” effect inversely, thus leading to more negative economic consequences, and is not conducive to the sustainable development of the company.

Renewable energy technology innovation is the key to alleviating environmental issues. The Chinese government promotes corporate innovation in the renewable energy industry by providing R&D subsidies. This paper investigates the impact of R&D subsidies on innovation strategies in Chinese renewable energy listed firms from 2008 to 2017. The results show that R&D subsidies induce firms to adopt a manipulative innovation strategy that increases innovation quantity but reduces innovation quality, especially in regions with low marketization or unfair competition. We further find that the choice of manipulative innovation strategy is caused by the flawed subsidy distribution system and examination procedures of subsidy use. This paper deepens the understanding of the relationship between government subsidies and corporate innovation strategy and provides new enlightenments for emerging economies to enhance the effectiveness of subsidy policies. [ABSTRACT FROM AUTHOR]

The just‐in‐time (JIT) system has drawn wide concern as a method of cost management. This paper investigates the effect of JIT adoption on corporate innovation. Using unique data manually collected of Chinese listed firms from 2007 to 2019, we find JIT adoption can promote innovation investment and output. Further evidence shows that customer and supplier concentration as well as market monopoly have moderate effect on the relationship of JIT adoption and corporate innovation. This paper makes a contribution to literature by identifying the positive effect of JIT on corporate innovation and provide strong convincing evidence to support the adoption of JIT. [ABSTRACT FROM AUTHOR]