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Political factors play a crucial role in China's initial public offering (IPO) market due to its distinctive institutional context (i.e. “economic decentralization” and “political centralization”). Given the significant level of IPO underpricing in China, we examine the impact of local political uncertainty (measured by prefecture-level city official turnover rate) on IPO underpricing.

Using 2,259 IPOs of A-share listed companies from 2001 to 2019, we employ a structural equation model (SEM) to examine the channel (voluntarily lower the issuance price vs aftermarket trading) through which political uncertainty affects IPO underpricing. We check the robustness of the results using bootstrap tests, adopting alternative proxies for political uncertainty and IPO underpricing and employing subsample analysis.

Local official turnover-induced political uncertainty increases IPO underpricing by IPO firms voluntarily reducing the issuance price rather than by affecting investor sentiment in aftermarket trading. These relations are stronger in firms with pre-IPO political connections. The effect of political uncertainty on IPO underpricing is also contingent upon the industry and the growth phase of an IPO firm, more pronounced in politically sensitive industries and firms listed on the growth enterprise market board.

Local government officials in China usually have a short tenure and Chinese firms witness significantly severe IPO underpricing. By introducing the SEM model in studying China IPO underpricing, this study identifies the channel through which local government official turnover to political uncertainty on IPO underpricing.

Drawing on self-determination theory (SDT), this study conceptualizes and empirically examines how and when green visionary leadership (GVL) stimulates employees’ green innovation (GI) in the workplace.

We collected 237 supervisor-employee matched multi-wave data from multiple organizations in China. The data were tested and analyzed using path analyses.

A significant relationship was found between GVL and GI, which was mediated by employees’ green passion (GP). Additionally, green value orientation (GVO) moderated both the direct relationship between GVL and GP and the indirect effect of GVL on employee GI via GP. Employees with stronger GVO were more likely to translate GVL into higher GI through increased GP.

Organizations should strengthen employees’ belief in green development, prioritize the recruitment, selection and training of leaders with GVL qualities, and foster a GVO among employees. This can enhance employees’ GP and ultimately drive GI within the organization.

This study develops an integrative model of GVL as central for organizational sustainability, focusing on GI. We apply SDT and identify GP as a mediator between GVL and GI, thus contributing to the understanding of psychological processes in GVL effectiveness. We also explore GVO as a boundary condition, providing insights into when GVL promotes GI. This advances research on leadership and green management literatures.

This study examines the impact of enhanced financial literacy on the allocation of risky assets within household financial portfolios, while also considering the mediating role of Taoist cultural influences.

The authors applied ordered probit models and ordinary least squares estimation to analyze a sample of 19,015 data collected from the 2019 Chinese Urban Household Consumer Finance Survey.

The results demonstrate that an improvement in financial literacy significantly contributes to an increase in residents’ allocation of risky assets. This enhancement in financial literacy, achieved through financial planning and a reduction in the influence of Taoist culture, effectively bolsters the quantity of risky financial assets held. Moreover, the impact of financial literacy on the allocation of risky financial assets is particularly pronounced among residents aged 45–55 and those aged 35–45 and older.

The practical implications suggest that policymakers and relevant departments may consider strategies to encourage greater participation in the financial market by promoting Taoist culture in an appropriate and reasonable manner while widely carrying out financial education for residents and improving their financial literacy.

While previous studies have not focused on the impact of traditional culture on financial decision-making allocations, this study investigates the significant impact of financial literacy and Taoist culture on risky asset allocations, highlighting in particular the significant impact on middle-aged residents. This provides a nuanced understanding of how financial literacy affects investment behavior and offers insights for policymakers to effectively tailor financial education programs.

Under the trend of global economic integration and the new context of stagflation, frequent fluctuations in international interest rates are exerting far-reaching impacts on the world economy. In this paper, the transmission mechanism of the impact of fluctuations in international interest rates (specifically, the American interest rate) on the bankruptcy risk in China's pillar industry, the construction industry (which is also sensitive to interest rates), is examined.

Using an improved contingent claims analysis, the bankruptcy risk of enterprises is calculated in this paper. Additionally, an individual fixed-effects model is developed to investigate the mediating effects of international interest rates on the bankruptcy risk in the Chinese construction industry. The heterogeneity of subindustries in the industrial chain and the impact of China's energy consumption structure are also analysed in this paper.

The findings show that fluctuations in international interest rates, which affect the bankruptcy risk of China's construction industry, are mainly transmitted through two major pathways, namely, commodity price effects and exchange rate effects. In addition, the authors examine the important impact of China's energy consumption structure on risk transmission and assess the transmission and sharing of risks within the industrial chain.

First, in the research field, the study of international interest rate risk is extended to domestic-oriented industries. Second, in terms of the research content, this paper is focused on China-specific issues, including the significant influence of China's energy consumption structure characteristics and the risk contagion (and risk sharing) as determined by the current development of the Chinese construction industry. Third, in terms of research methods a modified contingent claim analysis approach to bankruptcy risk indicators is adopted for this study, thus overcoming the problems of data frequency, market sentiment and financial data fraud, which are issues that are ignored by most relevant studies.